You just taken out a $300 000 home loan over 25 years with a fixed 8.25% interest rate (calculated monthly)

Calculate the amount of your monthly repayments. Home loan calculations are often based on an Annuities formula.

Note:

i = Periodic Interest Rate

n = Number of Periods

D = Periodic Deposit

A = Final amount

Annuity formula

A = D * ( ( 1 + i ) ^ n – 1 ) / i )

D = A * ( i / ( 1 + i ) ^ n – 1 ) )

D = 300 000 [ ( 0.0825 / 12 ) / ( ( 1 + ( 0.0825 / 12 ) ) ^ ( 25 * 12 ) – 1 )]

Is this formula right? Or am I just writing it out wrong? I went to a banking website and put in the numbers and got this answer:

D = $2,369.10 Monthly

Total payment over 25 years $708,432.94

Can someone tell me what I did wrong in the formula? And what the formula for calculating the total payment over 25 years would actually be? Wouldn't it just be D * 300 (25 years multiplied by 12 months)?