Working out how much interest I'll pay before the end of my fixed term

chog24

Hello all, I'm hoping someone who's better at maths than me can help!

I signed into a 2 year fixed rate mortgage last September and have unexpectedly found myself in a position where I can afford to clear the mortgage. However, as usual there's an early repayment fee on the mortgage.

I need to work out how to calculate how much interest I'll pay on my mortgage between now and September 2013, to see if that figure is higher than the early repayment fee (of course, if it is, I'll pay the mortgage off and if it isn't I'll hang onto the money and pay it off when the fixed rate finishes).

Unfortunately, my mortgage lender was singularly unhelpful in being able to give an estimate of the interest I'd be paying by then, saying that "it's a complicated calculation" (you'd think they didn't have access to computers!). I can work a spreadsheet and would be able to give it a reasonable stab myself except for the fact that I don't know how to convert the APR of the mortgage into a daily (compound) interest rate (what I do know is that you don't just divide by 365 because that doesn't account for the fact that the interest is compounded).

Does anyone know how to convert an APR into a daily compound interest rate, or know if there's a calculator on the web somewhere that I can plug my figures into to give a ball-park answer either to that or to the question "how much interest will I pay on my mortgage between now and a given date?"? (I haven't been able to find anything which does either)

Thanks in advance,

Ceri

HappyMJ

Don't worry too much about the compounding of monthly interest. Just take the rate divide by 365 then multiply by the number of days remaining in the term and the figure will be close enough for a rough calculation.