Calculate monthly payments, total interest, and view a detailed amortization schedule for any fixed-rate loan.
Monthly Payment
Total Interest
$382,633.47
Total Payment
$682,633.47
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,896.20 | $271.20 | $1,625.00 | $299,728.80 |
| 2 | $1,896.20 | $272.67 | $1,623.53 | $299,456.12 |
| 3 | $1,896.20 | $274.15 | $1,622.05 | $299,181.97 |
| 4 | $1,896.20 | $275.64 | $1,620.57 | $298,906.34 |
| 5 | $1,896.20 | $277.13 | $1,619.08 | $298,629.21 |
| 6 | $1,896.20 | $278.63 | $1,617.57 | $298,350.58 |
| 7 | $1,896.20 | $280.14 | $1,616.07 | $298,070.44 |
| 8 | $1,896.20 | $281.66 | $1,614.55 | $297,788.79 |
| 9 | $1,896.20 | $283.18 | $1,613.02 | $297,505.60 |
| 10 | $1,896.20 | $284.72 | $1,611.49 | $297,220.89 |
| 11 | $1,896.20 | $286.26 | $1,609.95 | $296,934.63 |
| 12 | $1,896.20 | $287.81 | $1,608.40 | $296,646.82 |
Where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate / 12), and nis the total number of payments. A $300,000 mortgage at 6.5% over 30 years produces a monthly payment of $1,896 — but you will pay $382,633 in total interest, more than the original loan amount.
In the early years of a loan, the majority of each payment goes toward interest, not principal. On a 30-year $300,000 mortgage at 6.5%, your first payment allocates $1,625 to interest and only $271 to principal. By month 200, the split reverses. This is why making extra payments in the first 5 years has an outsized impact — a single extra $500 payment in year 1 can save over $1,500 in total interest over the life of the loan.
A 15-year mortgage on $300,000 at 6% has a monthly payment of $2,532 compared to $1,799 for 30 years — only $733 more per month. But the total interest drops from $347,515 to $155,683, saving you $191,832. The 15-year option costs 40% more monthly but saves 55% in total interest. For borrowers who can handle the higher payment, the shorter term is almost always the better financial decision.
The interest rate is the cost of borrowing the principal. The APR (Annual Percentage Rate) includes the interest rate plus fees, points, and other charges spread over the loan term. A loan advertised at 6.0% interest might have an APR of 6.3% once origination fees are included. When comparing loans from different lenders, always compare APR, not the interest rate alone — it gives the true cost of borrowing.
An amortization schedule is a table showing each payment over the life of a loan, broken down into principal and interest components. Early payments are interest-heavy; later payments are principal-heavy. The schedule lets you see exactly how much equity you build each month and how much goes to the lender as profit.
Extra payments go directly toward reducing the principal balance. Since interest is calculated on the remaining balance, a lower balance means less interest accrues each month. On a $300,000 mortgage at 6.5%, adding just $200/month to your payment saves approximately $95,000 in interest and pays off the loan 7 years early.
Fixed rates lock in your payment for the entire term, providing predictability. Variable (adjustable) rates start lower but can increase over time based on market conditions. If you plan to stay in your home for 10+ years, a fixed rate protects against rate increases. If you plan to sell or refinance within 5–7 years, a variable rate's lower initial payment may save money.