Interest calculator · How to calculate the loan. Bankrate's loan interest calculator can help you determine the total interest over the life of your loan and your average monthly interest payments. This calculator only applies to fixed or simple interest loans. Affordable home loan rate for buyers or refinancers.
Option to add an offset of 0.10%. Access to discounts with unlimited sweepstakes available. Niko Iliakis is a finance journalist at Mozo and specializes in mortgage lending, property and interest rate movements. With an eye on facts and figures, Niko delves into topics to help readers understand key information and make more informed financial decisions.
It is ASIC RG146 (Tier) certified for general advice. The total amount paid with interest is calculated by multiplying the monthly payment by the total number of months. The total interest paid is calculated by subtracting the loan amount from the total amount paid. This calculation is accurate, but not exact to the penny, since, in reality, some actual payments may vary by a few cents.
All of these things should be freely available before you apply for a loan, and it's a good idea to know them all, even if you're not trying to calculate interest. Use this loan calculator to easily calculate your monthly payment along with the interest paid on the loan. Since you've already started paying your principal, to calculate the interest you'll pay in the following months, you must first calculate your new balance. When calculating the interest on your loan, remember to use the basic annual interest rate and not the comparison rate to get exact figures.
Simply enter the starting amount, the number of months and the interest rate and the calculator will determine your monthly payment. Keep in mind that doing the calculations yourself involves small discrepancies due to rounding and human error, this should give you a fairly clear idea of what you pay in interest each month. You'll need to know some basic facts about your loan before you calculate the amount of interest you'll pay. Determining the interest rate is a complex calculation that includes the Newton-Raphson Method, which you can read about in MathWorld.
Because calculating amortization schedules requires a lot of math, Bankrate has a repayment calculator that does all the work for you. This table details all payments, monthly interest and principal amounts, as well as the remaining balance of the loan at any given time (just like a spreadsheet or a good calculator). The easiest way to calculate the interest on a loan is with a calculator or a spreadsheet, but you can also do it by hand if you prefer. Some loans, such as global loans, may also have smaller routine payments over their lifetime, but this calculation only works for loans with a single payment of all principal and interest due at maturity.
