Annual Mortgage Interest Rent Calculator

How to Use This Calculator

1. Enter your mortgage principal amount (the initial amount borrowed)
2. Input your annual interest rate (the percentage charged by the lender)
3. Specify your loan term in years (common terms are 15, 20, or 30 years)
4. Click the "Calculate" button to see your annual interest payment

Understanding the Results

This calculator provides three key metrics:

• Annual Mortgage Interest Payment: The total amount of interest you'll pay in one year
• Monthly Payment: Your total monthly payment (principal + interest)
• Total Interest: The total interest you'll pay over the life of the loan

Principle Explained

The calculator uses the standard mortgage formula to calculate your payment:

Monthly Payment = P × [r(1+r)^n]/[(1+r)^n-1]

Where:

• P = Principal amount (the initial loan amount)
• r = Monthly interest rate (annual rate divided by 12)
• n = Number of payments (loan term in years × 12)

Example Scenario

If you have a $250,000 mortgage with a 4.5% interest rate over 30 years, your annual interest payment would be approximately $11,250. This means your total interest over the life of the loan would be about $162,000.

Important Notes

This calculator provides estimates and does not include additional costs such as property taxes, homeowners insurance, or private mortgage insurance (PMI). For a complete mortgage payment calculation, these costs should be added to your monthly payment.