1. What is the Mortgage Interest Calculator?

The Mortgage Interest Calculator calculates the total interest paid over the entire mortgage tenure using the formula I = EMI × N - P. It helps borrowers understand the true cost of their mortgage beyond the principal amount.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( EMI \) — Equated Monthly Installment (monthly payment)
• \( N \) — Total number of monthly payments
• \( P \) — Principal loan amount
• \( I \) — Total interest paid over the loan term

Explanation: This formula calculates the difference between the total amount paid over the loan term and the original principal, which represents the interest cost.

3. Importance of Total Interest Calculation

Details: Understanding total interest paid helps borrowers make informed decisions about loan terms, compare different mortgage options, and plan their long-term financial strategy.

4. Using the Calculator

Tips: Enter the monthly EMI payment, total number of payments, and principal amount. All values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: Why calculate total interest paid?
A: It helps borrowers understand the true cost of borrowing and compare different loan options effectively.

Q2: Does this calculation include other fees?
A: No, this calculation only includes interest. Other fees like origination fees, insurance, or taxes are not included.

Q3: How can I reduce total interest paid?
A: Making extra payments, choosing a shorter loan term, or refinancing at a lower rate can reduce total interest.

Q4: Is this calculation accurate for all mortgage types?
A: This formula works for fixed-rate mortgages. Adjustable-rate mortgages may require more complex calculations.

Q5: What currency should I use?
A: Use any currency as long as you're consistent (all inputs in the same currency).