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Monthly mortgage payment - how to determine interest/repayment split

2 replies

butterflycatcher · 31/03/2022 14:04

Sorry if I sound totally daft asking this but is there a way to figure out what portion of the monthly mortgage payment is towards the interest versus the repayment of the loan.

Most online calculators only tell you what your monthly repayment total would be rather than breaking it down and it makes comparing different scenarios very difficult.

For example I'd like to know how much interest would I be paying if my total monthly payment was £2000 at 2% or 3%?

Does anyone have a formula or an online calculator they have found to help with this?

Thank you.

OP posts:
Jmaho · 31/03/2022 17:02

OK so take your outstanding balance and multiply it by your current interest rate. Then divide that figure by 12 and that shows you have much is interest each month. Take that off your total monthly payment and the amount left is approx how much of the capital is paid off each month
For example
Mortgage of £200,000 at 2% interest rate means interest payable of £333.33 pm. It's not exact but near enough

butterflycatcher · 31/03/2022 22:35

Thank you @Jmaho

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