Luke 7:40-43

⁴⁰Then Jesus spoke up and answered his thoughts. "Simon," he said to the Pharisee, "I have something to say to you."
All right, Teacher," Simon replied, "go ahead."
⁴¹Then Jesus  told him this story: "A man loaned money to two people- five hundred pieces of silver to one and fifty pieces to the other.  ⁴²But neither of them could repay him, so he kindly forgave them both, canceling their debts.  Who do you suppose loved him more after that?"
⁴³Simon answered, "I suppose the one for whom he canceled the larger debt."
"That's right," Jesus said. (NLT) 

Here is a simple example of interpreting a parable.

First, we should know the whole context by reading verses 36-50.  Jesus was invited to eat in Simon's house.  A certain woman came and poured out an expensive perfume to wash Jesus' feet.  She was also weeping and using her hair to wipe Jesus' feet.  Simon saw this, and started questioning the behavior of the woman and of Jesus who allowed this to happen.  Then Jesus turned to Simon and told him the parable.

So what is the main point of the parable?  Is Jesus asking Simon to forgive the woman?  Is Jesus trying to give them an example of forgiving others?

To find out the point of Jesus' parable, we should know who is the audience and why did he say it in the first place.  The main audience is Simon.  Since the parable is directed towards him.  Also the woman since she can identify herself in the parable.  Jesus told the story in response to Simon's thoughts of criticism towards Jesus and the woman.

Even though, Jesus explained the point of the parable in verses 44-47, Simon got the main point right after Jesus told him the story.  It was  judgment of Simon's real attitude towards Jesus.  For the woman, it was the acceptance of her acts of love toward him.  The parable is saying that both Simon and the woman's actions during the meal exposed their real attitude towards God's mercy on them. 

Remember, parables are meant to drive home a point to the audience, and we shouldn't miss that point by concentrating on every elements of the parable and ignoring the context of the parable itself.

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