1. What is Total Interest on Mortgage?

Total interest on mortgage represents the total amount of interest paid over the entire loan tenure. It helps borrowers understand the true cost of borrowing beyond just the principal amount.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

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

Explanation: The formula calculates the difference between the total amount paid (EMI × N) and the principal amount borrowed, which gives the total interest paid.

3. Importance of Total Interest Calculation

Details: Understanding total interest helps borrowers make informed decisions about loan terms, compare different mortgage options, and plan their finances better by knowing the actual cost of the loan.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why calculate total interest on a mortgage?
A: It helps borrowers understand the true cost of their loan and compare different mortgage products effectively.

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

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

Q4: Is this calculation accurate for all mortgage types?
A: This calculation works for fixed-rate mortgages. For adjustable-rate mortgages, the calculation would be more complex due to changing interest rates.

Q5: What's the difference between total interest and total payment?
A: Total payment includes both principal and interest, while total interest is only the interest portion of the total payment.