A relatively straightforward mathematical formula can be used to calculate the total sum of compound interest that will be paid on a mortgage loan. Add 1 to this to account for the effects of compounding 3. Keep a running tally in an additional column if you want to track interest over time.
Compound interest or interest on interest is calculated with the compound interest formula.
With a compound interest loan interest is added to the principal on top of any interest thats already accumulated. 2 Gather variables the compound interest formula. Using an Online Calculator to Find Compound Interest. Generally the longer the term the more interest will be.