 # Calculating Interest on Your Mortgage ## Formula for Mortgage Interest Calculation

Mortgage interest rate is the amount you pay to a lender each month to borrow the money to purchase a home. It is expressed as a percentage of the loan amount. To calculate the mortgage interest rate, you need to know the loan amount, the term of the loan and the interest rate.

The formula for calculating mortgage interest rate is:

Mortgage Interest Rate = (Interest Rate/12) x Loan Amount/Term in Months

## How to Calculate Monthly Interest

To calculate your monthly mortgage interest rate, you need to know the interest rate, loan amount, and the term of the loan in months. Here is an example of how to calculate your monthly mortgage interest rate:

Assume you have a \$100,000 loan with a 4.5% interest rate and a 30-year term.

Mortgage Interest Rate = (4.5/12) x 100,000/360

Mortgage Interest Rate = 0.375 x 277.78

Mortgage Interest Rate = \$104.17

Therefore, your monthly mortgage interest rate is \$104.17.

## How to Calculate Monthly Interest on a 30 Year Mortgage

To calculate the monthly interest rate on a 30-year mortgage, you will need to know the interest rate, loan amount, and the loan term in months. Here is an example of how to calculate the monthly interest rate on a 30-year mortgage:

Assume you have a \$200,000 loan with a 4.5% interest rate and a 30-year term.

Mortgage Interest Rate = (4.5/12) x 200,000/360

Mortgage Interest Rate = 0.375 x 555.56

Mortgage Interest Rate = \$208.33

Therefore, your monthly mortgage interest rate on a 30-year mortgage is \$208.33.