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The Total Interest calculator computes the total interest paid over a fixed rate loan based on the original principle, the monthly payments and the number of payments.
INSTRUCTIONS: Choose units and enter the following:
- (P) Original Principle
- (c) Monthly Payment
- (N) Number of Payments
Total Interest (TI): The calculator returns the total interest in U.S. dollars. However this can be automatically converted to compatible units via the pulldown menu.
The Math / Science
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
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.
