Determine the total amount borrowed. 4 It doesnt account for any interest you earn over time and will always be calculated based on your principal deposit or the original amount of money deposited into your account as long as you dont add to or subtract from the principal balance. Total Interest Paid on a Loan Total amount paid with interest is calculated by multiplying the monthly payment by total months.
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How to calculate simple interest You figure simple interest on the principal which is the amount of money borrowed or on deposit using a basic formula. 4 It doesnt account for any interest you earn over time and will always be calculated based on your principal deposit or the original amount of money deposited into your account as long as you dont add to or subtract from the principal balance. Includes taxes insurance PMI and the latest mortgage rates. Note that you use a monthly interest rate 5 12 months and you adjust the number of periods to 60 months.