This article will guide you to restore your iPhone to Factory Setting with simple 5 steps.
Easy Way: How to Restore iPhone to Factory Setting?
• Step 1: Backup the iPhone before proceeding.
Back up the iPhone in iTunes before proceeding to make sure you can backup all your iPhone data.
• Step 2: Tap the "Settings" icon
If it's on on your homescreen, swipe to the right and type the first few letters to find "Settings".
• Step 3: Select "General"
Tap the line that says "General". It has the gear icon.
• Step 4: Scroll to the "Reset" botton
Scroll down the screen until you see a line that says "Reset." Tap "Reset."
• Step 5: selected "Erase iPhone"
Your iPhone will remind you that you've selected "Erase iPhone" and this will delete all media and data, and reset all settings.

Now you've completely restored your iPhone to factory settings.
Note: If you want your iPhone to stay free of data or restore from backup (to return all your saved data to your iPhone), try to follow the article of How to restore iPhone from iTunes Backup Files.
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Related Guides & Articles
• How to Jailbreak iPhone Running iOS 6.1
• How to Unlock an iPhone for free
• How to Restore Deleted Contacts on iPhone

