How Do You Calculate Principal Paid On A Loan Payment?
When you want to calculate the amount of principal you pay on a loan payment, whether it be a mortgage payment or any other loan payment, you must first figure the amount of accrued interest you are paying on the loan. Gather your total loan payment information. You must know the total principal balance and the interest rate figured into your loan in order to calculate the principal paid on your loan payment. When interest is figured, a 360-day year is used. Multiply the interest rate by the principal loan balance. Take that figure and divide by 360. This gives you the per diem interest charges on your loan. Take the total days of the month you are in and multiply that number times the per diem interest rate. For example, 30 days times “x” number of dollars will equal your monthly interest charge. Subtract from the total monthly payment your total monthly interest charge. This amount you calculate will be the principal paid on your loan payment.
