- 1). Figure the monthly interest rate on your mortgage by dividing the annual rate, expressed as a decimal, by 12. Your lender can tell you the current interest rate on your mortgage. For example, if you have a 5.52 percent interest rate, you would divide 0.0552 by 12 to get 0.0046.
- 2). Multiply the monthly interest rate expressed as a decimal by the current amount you owe on your mortgage to find the interest portion of your payment. You can find this amount on your most recent mortgage statement or by calling your lender. Continuing the example, if your current mortgage balance equals $105,000, you would multiply $105,000 by 0.0046 to find that $483 of your payment would go toward interest.
- 3). Subtract the interest part of your monthly payment from your total monthly payment to find the part of your monthly payment that goes toward principal. Finishing the example, if you made a monthly payment of $1,000, you would subtract $483 from $1,000 to find that $517 would go toward principal.
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