Total Interest

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Equation / Last modified by mike on 2015/07/30 06:53
`"Interest"_"Total" = `
Rating
ID
MichaelBartmess.Total Interest
UUID
e6d22df6-da27-11e2-8e97-bc764e04d25f

The total interest (I) paid on a fixed rate mortgage loan is defined by the difference between the total payments and the loan Principal i.e. I = c .N - P

Notes

This equation can be used if you know how much you borrowed, and how much you pay each month.  This equation can calculate how much interest you will pay on this loan using those two numbers,

For example:

If you know you borrowed $50,000,   and made a total of 60  monthly payment of $900 each,  This equation will calculate how much interest will be paid over the life of the loan, which will be $4000.