## Imputed Interest Calculator

The Imputed Interest Calculator is a tool used to estimate the imputed interest on a loan or financial transaction.

### Formula

The formula used in this calculator is:

**Imputed Interest = Principal Amount × (Annual Rate ÷ 100) × Term Length**

### Example

Let’s say you have a principal amount of $10,000, an annual interest rate of 5%, and a term length of 3 years. By entering these values into the calculator and clicking “Calculate,” the result will show an imputed interest of $1,500. This means that, based on the formula, the estimated imputed interest for the given parameters would be $1,500.