- 1). Find the monthly interest rate on your mortgage by dividing the annual interest rate by 12. For example, a mortgage with an annual interest rate of 8.1 percent would have a monthly interest rate of 0.675 percent.
- 2). Convert the monthly interest rate written as a percentage to a decimal by dividing by 100. Continuing the example, you would divide 0.675 percent by 100 to get 0.00675.
- 3). Multiply your monthly mortgage interest rate by the amount remaining on your mortgage to find the interest portion of your payment. For example, if you owed $76,000 on your mortgage, you would multiply $76,000 by 0.00675 to get $513 of interest.
- 4). Subtract the amount of interest paid from your monthly payment to find the principal paid. Finishing the example, if your monthly payment equals $1,100, you would subtract $513 from $1,100 to find that you would pay $587 in principal.
SHARE
