Monthly payment on a $300,000 mortgage at 6% for 15 years
A $300,000 loan at 6% over 15 years costs $2,531.57 a month. You pay $155,683 in interest, $455,683 in total.
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The numbers for these inputs
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | $12,725 | $17,654 | $287,275 |
| 2 | $13,510 | $16,869 | $273,765 |
| 3 | $14,343 | $16,036 | $259,422 |
| 4 | $15,228 | $15,151 | $244,194 |
| 5 | $16,167 | $14,212 | $228,027 |
| 6 | $17,164 | $13,215 | $210,863 |
| 7 | $18,223 | $12,156 | $192,640 |
| 8 | $19,347 | $11,032 | $173,294 |
| 9 | $20,540 | $9,839 | $152,754 |
| 10 | $21,807 | $8,572 | $130,947 |
| 11 | $23,152 | $7,227 | $107,795 |
| 12 | $24,580 | $5,799 | $83,215 |
| 13 | $26,096 | $4,283 | $57,119 |
| 14 | $27,705 | $2,674 | $29,414 |
| 15 | $29,414 | $965 | $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 $300,000 at 6%?
$2,531.57 a month for 180 months, assuming a fixed rate and equal payments.
How much interest will I pay in total?
$155,683, which is 51.89% of the amount borrowed. The total repaid is $455,683.
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 $400,000 mortgage at 6.75% for 30 years
- Monthly payment on a $200,000 mortgage at 7% for 30 years