Worked example
Borrow $400,000 at 6.5% a year for 30 years and the Monthly payment is $2,528. You pay $510,178 as interest, so you repay $910,178 in all.
- Loan amount
- $400,000
- Interest rate (per year)
- 6.5%
- Loan term
- 30 years
- Monthly payment
- $2,528
- Total interest
- $510,178
- Total payment
- $910,178
| Year | Paid in the year | Interest | Principal | Balance at year end |
|---|---|---|---|---|
| 1 | $30,339 | $25,868 | $4,471 | $395,529 |
| 2 | $30,339 | $25,569 | $4,770 | $390,759 |
| 3 | $30,339 | $25,249 | $5,090 | $385,669 |
| 4 | $30,339 | $24,909 | $5,431 | $380,238 |
| 5 | $30,339 | $24,545 | $5,794 | $374,444 |
| 10 | $30,339 | $22,327 | $8,013 | $339,105 |
| 15 | $30,339 | $19,259 | $11,080 | $290,237 |
| 20 | $30,339 | $15,018 | $15,322 | $222,661 |
| 25 | $30,339 | $9,152 | $21,187 | $129,217 |
| 30 | $30,339 | $1,042 | $29,298 | $0 |
Looking for a common amount? See the mortgage payment examples, with the payment, interest and yearly schedule for each.
How to use this calculator
- Enter the amount you plan to borrow — the home price minus your down payment.
- Enter the interest rate from your loan estimate.
- Choose the loan term, in years or months.
- Read your monthly payment, the total interest and the total of all payments.
- Switch chart views, open any year of the schedule, or download it as a CSV file.
What your payment leaves out
The figure above is principal and interest. Your actual monthly bill is usually higher: most lenders collect property taxes and homeowners insurance through an escrow account, and that part of the payment changes as taxes and premiums change. Put down less than 20% on a conventional loan and you may also pay private mortgage insurance until you build enough equity.
Source: Consumer Financial Protection Bureau, “What is private mortgage insurance?” (reviewed Aug 28, 2023) and “What is an escrow or impound account?” (reviewed Sep 11, 2024). Payments use standard fixed-rate amortization: a $400,000 loan at 6.5% for 30 years comes to $2,528.27 a month.
Frequently asked questions
What does this monthly payment include?
Principal and interest only. Most lenders also collect property taxes and homeowners insurance through an escrow account, which raises your total monthly payment, and a conventional loan with less than 20% down may require private mortgage insurance (PMI) as well.
Why does so much of each early payment go to interest?
Interest is charged on the balance you still have, and that balance is largest at the start. On a $400,000 loan at 6.5%, about 85% of what you pay in the first year goes to interest. As the balance comes down, more of every payment goes toward principal.
Is a 15-year mortgage worth it?
It costs more each month but far less overall. If a 15-year loan were offered at 5.75% instead of 6.5% on 30 years, the payment on $400,000 would rise from $2,528 to $3,322 — but total interest would drop from $510,178 to $197,895. Enter your own quotes to compare.
How much does half a point on the rate matter?
More than most people expect. At 6% instead of 6.5%, the payment on $400,000 over 30 years falls by $130 a month, and you’d pay $46,825 less interest over the life of the loan.
Does this work for an adjustable-rate mortgage?
It assumes the rate stays fixed for the entire term. For an ARM, the figures hold only for the initial fixed period; after that your payment resets with the rate.
What is an amortization schedule?
A month-by-month table showing how each payment splits between interest and principal, and what you still owe afterward. Open any year in the schedule below to see its months, or download the whole thing as a spreadsheet.