How To Calculate Total Interest Paid On Mortgage In Excel Note In the formula B2 is the annual loan interest rate B2 12 will get the monthly rate B3 is the years of the loan B3 12 will get the total number of periods months during the loan B1 is the total amount of loan B4 is the first period you pay the bank while B5 is the last period you pay the bank Now you will get the total interest
We ll use the Excel PPMT function to find out the principal portion of the mortgage monthly payment We ll introduce the PPMT function first Introduction to Excel PPMT Function Summary The PPMT function calculates the payment on the principle for a given investment based on periodic constant payments and a constant interest rate Syntax PPMT rate per nper pv fv type Loan Amount 5 000 000 00 The loan amount It must be entered as a negative value Yearly Rate 10 10 interest rate should be paid annually Period per Year 12 There are 12 months in a year Period 1 To get the result for the first month the input is 1 This value is variable Total Period year 25 The number of years allowed to pay off the total loan amount
How To Calculate Total Interest Paid On Mortgage In Excel
How To Calculate Total Interest Paid On Mortgage In Excel
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Using Excel s CUMIPMT Function To Determine Interest Paid Over Multiple
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To calculate the interest paid add the total amount with interest to the amount of the loan Have Excel make the calculation by typing the following B9 B2 B9 contains the total amount with interest B2 contains the amount of the loan Then select Enter The value that appears in B10 is 20114 09 So the total interest paid is For example you can build a calculator to calculate the total interest paid on a loan based on the loan amount interest rate and period of payment In Excel there are 2 ways of doing this CUMIPMT function this returns the cumulative interest between a start and end period
Determining Total Interest Paid To calculate the total interest paid subtract the loan amount from the total payment amount Essentially this tells you how much extra you re paying beyond what you borrowed In cell B5 enter the following formula B4 A1 Voila You can now see the total interest paid over the life of the loan After figuring out the monthly payment you can easily determine the total interest with a simple formula The formula to find the total interest paid is Total Interest Monthly Payment Total Number of Payments Loan Amount In Excel place this formula in the Total Interest Paid column For our example it would look something like
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Introduction Understanding how to calculate the total interest paid on a loan is essential for anyone managing their finances Whether you re taking out a mortgage car loan or personal loan knowing the total amount of interest you ll pay over the life of the loan can help you make informed decisions and plan for the future Shows total interest paid a month by month amortization schedule Microsoft Excel Mortgage Calculator Spreadsheet Usage Instructions The calculator updates results automatically when you change any input 1 loan amount the amount borrowed or the value of the home after your down payment 2
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