Loan & Mortgage Calculator
A $300,000 loan at 6.5% over 30 years costs about $1,896 a month, and roughly $382,600 of that total is interest.
Monthly payment
$1,896.20
Total interest
$382,633
Total paid
$682,633
Still owed $300,000 · 0% paid off
Show the math
- 1
Start with your inputs
Loan $300,000 · 6.5% a year · 30 years
Read the steps as text
- Start with your inputs. Loan $300,000 · 6.5% a year · 30 years
- Convert to monthly numbers. r = 6.5% ÷ 100 ÷ 12 = 0.00541667 · n = 30 × 12 = 360 payments Loans are paid monthly, so the rate and the term are both converted to months.
- Work out the growth factor (1 + r)ⁿ. (1 + 0.00541667)^360 = 6.991798 This is how much a balance would grow over the whole term if left untouched.
- Apply the payment formula. P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1) = $300,000.00 × 0.00541667 × 6.9918 ÷ (6.9918 − 1) This finds the fixed payment that pays off exactly zero by the last month.
- Month 1: how the first payment splits. Interest $300,000.00 × 0.00541667 = $1,625.00 → principal $1,896.20 − $1,625.00 = $271.20 Early payments are mostly interest. Each month a little more goes to principal.
- Add it all up. $1,896.20 × 360 = $682,633.47 paid, of which $382,633.47 is interest Interest is 127.5% on top of the amount you borrowed.
How your monthly payment is worked out
Lenders use a fixed-payment formula: payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount borrowed, r is the monthly interest rate and n is the number of monthly payments. The step player above plugs your numbers into it one piece at a time.
In the first months most of each payment is interest. As the balance shrinks, less interest is charged and more of the same payment goes to principal. The house graphic fills as the loan is paid off so you can see that shift.
Ways to pay less interest
A shorter term raises the monthly payment but cuts total interest sharply. Extra payments toward principal reduce the balance sooner, so less interest builds up. Even a small rate difference matters on a long loan: try 6.0% versus 6.5% above.
Frequently asked questions
- Does this include taxes and insurance?
- No. It shows principal and interest only. Property tax, home insurance and any mortgage insurance are added on top by your lender.
- Why is so much of my early payment interest?
- Interest is charged on the outstanding balance, which is at its highest at the start. The payment is fixed, so the principal portion starts small and grows.
- Can I use this for a car or personal loan?
- Yes. Any fixed-rate loan with equal monthly payments uses the same formula.