Can someone help me work out how much interest I'm paying?

Gillybean

Monthly, daily hourly, etc?

We've got 126k (ish) at a rate of 5.95% over 22 years.

I'd love to know as it'd be a great motivator for me!

Thanks in advance,

Gillybean

jules73_2

Well, it depends how you choose to calculate the interest, but at the moment you will be paying approx.

• £600 in interest per month
• £100,000 in interest over the whole term

Gillybean

Wow, those figures are some motivation! Specially as £600 per month is not far off my monthly salary!

Thanks so much.

bryanb

How was the £100,000 as a motivator?

Gillybean

So around 82p per hour, £19.73 per day, have I got it right?

jules73_2

Gillybean wrote: »

So around 82p per hour, £19.73 per day, have I got it right?

Yes..at the moment.
Remember, this amount will decrease as time goes on

Gillybean

Course, but thanks. Just musing on how easy it sounds to stick 82p in a jar every hour. it sounds so simple on that level, but take it to the 100k level and it's scary!

JonnyBravo

Gillybean wrote: »

Course, but thanks. Just musing on how easy it sounds to stick 82p in a jar every hour. it sounds so simple on that level, but take it to the 100k level and it's scary!

Oh yeah, easy?
Every hour of every day and night?
Christmas Day?
It doesn't stop!


Oh and I make it closer to 86p for you as your monthly interest payment this month should be c £625.

jules73_2

Would be better if you worked it out based on the interest over the 22 years rather than your currnet daily rate.

52p an hour:j

Gillybean

OK, JonnyBravo, maybe just in working hours

Jules, 52p an hour sounds better!

I am huuugely motivated now!

:j :money: :j :money: :j

ailuro2

http://www.moneyforums.co.uk/mortgage_calculator.php

lets you see how much it will be every year-

That's why overpaying early in the mortgage has such an impact- there's more money left over to pay off the repayment section of the mortgage though the monthly payment remains the same - this in turn reduces the outstanding balance even quicker, allowing the mortgage to be paid off early.

Before someone jumps on me for mentioning overpaying- this IS the mortgage free wannabe board.:rolleyes:

Currently we are down to £65 a month in interest from £137 this time last year.:j

Good Luck with getting rid of even just a few pence a day from your interest bill.