How to Calculate Mortgage Interest

How to Calculate Mortgage Interest

Calculating mortgage interest can be a tricky task, but with certain information, it doesn't have to be! To calculate mortgage interest, you'll need the following information:

• Mortgage principal balance
• Mortgage interest rate
• Length of repayment term (in years)

To begin, take your mortgage principal balance and divide it by 1,000. Then, multiply this number by the length of the loan's repayment term (in years). The result of this calculation is the interest you will incur over the course of the loan term.

Next, take the mortgage interest rate and divide it by 12. Then, multiply this value by the interest you just calculated. This will give you your total monthly interest payments for the loan term.