Monthly payment on a $200,000 mortgage at 7% for 30 years
A $200,000 loan at 7% over 30 years costs $1,330.60 a month. You pay $279,018 in interest, $479,018 in total.
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The numbers for these inputs
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | $2,032 | $13,936 | $197,968 |
| 2 | $2,178 | $13,789 | $195,790 |
| 3 | $2,336 | $13,631 | $193,454 |
| 4 | $2,505 | $13,462 | $190,949 |
| 5 | $2,686 | $13,281 | $188,263 |
| 6 | $2,880 | $13,087 | $185,383 |
| 7 | $3,088 | $12,879 | $182,295 |
| 8 | $3,312 | $12,656 | $178,983 |
| 9 | $3,551 | $12,416 | $175,432 |
| 10 | $3,808 | $12,160 | $171,625 |
| 11 | $4,083 | $11,884 | $167,542 |
| 12 | $4,378 | $11,589 | $163,164 |
| 13 | $4,695 | $11,273 | $158,469 |
| 14 | $5,034 | $10,933 | $153,436 |
| 15 | $5,398 | $10,569 | $148,038 |
| 16 | $5,788 | $10,179 | $142,250 |
| 17 | $6,206 | $9,761 | $136,043 |
| 18 | $6,655 | $9,312 | $129,388 |
| 19 | $7,136 | $8,831 | $122,252 |
| 20 | $7,652 | $8,315 | $114,600 |
| 21 | $8,205 | $7,762 | $106,395 |
| 22 | $8,798 | $7,169 | $97,597 |
| 23 | $9,434 | $6,533 | $88,162 |
| 24 | $10,116 | $5,851 | $78,046 |
| 25 | $10,848 | $5,120 | $67,198 |
| 26 | $11,632 | $4,335 | $55,566 |
| 27 | $12,473 | $3,495 | $43,094 |
| 28 | $13,374 | $2,593 | $29,719 |
| 29 | $14,341 | $1,626 | $15,378 |
| 30 | $15,378 | $589 | $0 |
How it works
A fixed-rate loan is repaid with the same payment every month. The payment is chosen so that, after the last one, the balance is exactly zero: payment = amount x r / (1 - (1 + r)^-n), where r is the monthly rate (yearly rate / 12) and n is the number of months.
Each month the interest is the balance times r. The rest of the payment reduces the balance. Early on most of the payment is interest; later most of it is principal, which the year-by-year table shows.
The result does not include fees, insurance, taxes or a variable rate. Your lender's figure can differ a little, so use this to compare options, then ask for the official schedule.
Common mistakes
- Comparing loans by monthly payment alone: a longer term lowers the payment but raises the total interest.
- Forgetting that the quoted rate and the APR can differ once fees are included.
- Not checking whether extra payments go to principal; paying a little extra early saves the most interest.
- Using the headline rate for a variable-rate loan, which can rise.
Questions
What is the monthly payment on $200,000 at 7%?
$1,330.60 a month for 360 months, assuming a fixed rate and equal payments.
How much interest will I pay in total?
$279,018, which is 139.51% of the amount borrowed. The total repaid is $479,018.
How do I pay less interest?
Choose a shorter term, make a larger down payment, or pay extra toward the principal. Change the term slider to see the trade-off between payment and total interest.
Does this include fees or insurance?
No. It covers principal and interest only. Add origination fees, insurance or property taxes separately; for a mortgage they can add a large share to the monthly cost.
Why is the first year mostly interest?
Interest is charged on the remaining balance, which is highest at the start. As the balance falls, a larger part of each equal payment goes to principal.
More loan payment examples
- Monthly payment on a $20,000 car loan at 7% for 5 years
- Monthly payment on a $30,000 car loan at 6.5% for 6 years
- Monthly payment on a $10,000 personal loan at 9% for 3 years
- Monthly payment on a $5,000 personal loan at 12% for 2 years
- Monthly payment on a $30,000 student loan at 5% for 10 years
- Monthly payment on a $50,000 student loan at 5.5% for 10 years
- Monthly payment on a $300,000 mortgage at 6.5% for 30 years
- Monthly payment on a $300,000 mortgage at 6% for 15 years
- Monthly payment on a $400,000 mortgage at 6.75% for 30 years