"To calculate the interest amount you would require the formula. It is a mathematical formula which takes into account the principal, interest, and the tenure. But first you need to find out whether the lender uses a simple interest method or compound interest method for calculation. Calculation in simple interest is rather easy. To obtain it multiply the principal amount, interest rate and time. using this formula you will find the interest amount on the loan. There are a few institutions which calculate the interest based on amortisation schedule. How to calculate the interest in such a case follow the following steps.
1. divide the interest rate baisa number of payments you will have to make in a year.
2. Multiply the result obtained with remaining loan balance to know how much you will have to pay in the next month.
3. Detect that interest amount from the fixed monthly payment. This will give you the principal amount you need to pay in the first month.
4. From the month onwards repeat the above process with the respective loan balance remaining.
This process can be tiresome to one. You can hence, use any online interest calculator to help yourself.
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