How to calculate total interest paid on a loan formula

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How do you calculate total interest paid on a loan?
How do you calculate total intrest?
How do you calculate interest paid on total interest?
What is the total interest paid?

Let’s say you have bought a house with a bank loan, and you need to pay the bank every month in coming years. Do you know how much interest you will pay on the loan? Actually, you can apply the CUMIPMT function to figure it out easily in Excel.

Calculate total interest paid on a loan in Excel

Calculate total interest paid on a loan in Excel

For example, you have borrowed $100000 from bank in total, the annual loan interest rate is 5.20%, and you will pay the bank every month in the coming 3 years as below screenshot shown. Now you can calculate the total interest you will pay on the load easily as follows:

Select the cell you will place the calculated result in, type the formula =CUMIPMT(B2/12,B3*12,B1,B4,B5,1), and press the Enter key. See screenshot:

Note: In the formula, B2 is the annual loan interest rate, B2/12 will get the monthly rate; B3 is the years of the loan, B3*12 will get the total number of periods (months) during the loan; B1 is the total amount of loan; B4 is the first period you pay the bank, while B5 is the last period you pay the bank.

Now you will get the total interest you will pay. See screenshot:

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How do you calculate total interest paid on a loan?

Simply multiply the principal amount by the interest rate and the lending term in years to calculate the total interest you will pay over the life of your loan.

How do you calculate total intrest?

Total interest is the sum of all interest paid over the life of a loan or interest-bearing account, including compounded amounts on unpaid accumulated interest. It can be derived using the formula [Total Loan Amount] = [Principle] + [Interest Paid] + [Interest on Unpaid Interest].

How do you calculate interest paid on total interest?

To calculate interest rate, start by multiplying your principal, which is the amount of money before interest, by the time period involved (weeks, months, years, etc.). Write that number down, then divide the amount of paid interest from that month or year by that number.

What is the total interest paid?

Total interest is a banking term that refers to all the interest an individual pays on a loan or interest-bearing account. This can include compound interest, which is the interest that you pay on accumulated unpaid interest.