240,000 at 6.5% for 30 years
Input Price 300,000 with 20% down, rate 6.5%, term 30 years.
Result Monthly 1,516.96, total interest 306,106.77, and year one splits into 15,521.02 interest plus 2,682.54 principal.
Mortgage Calculator
Money & BusinessWork out the monthly payment, the total interest and the first-year split between interest and principal for a fixed-rate home loan.
Your inputs
Result
Monthly payment
—
- Loan amount —
- Down payment —
- Total interest —
- Total paid over the term —
- Interest in year one —
- Principal in year one —
- Interest share in year one — %
- Payoff month —
Change any input and the result updates instantly.
Formula and rules
- Monthly payment = loan × monthly rate ÷ (1 − (1 + monthly rate) to the power of −months)
- Monthly rate = annual rate ÷ 12, and months = term in years × 12
- Total interest = monthly payment × months − loan amount
- In year one the balance falls slowly: interest is charged on the whole loan, so most of the first twelve payments are interest
- Payoff month = this month plus the term, assuming every payment is made on time
Worked examples
The same loan over 15 years
Input Loan 240,000 at 6.5% for 15 years.
Result Monthly rises to 2,090.66 but total interest drops from 306,106.77 to 136,318.38.
A smaller down payment
Input Price 300,000 with 10% down, rate 6.5%, term 30 years.
Result Loan grows to 270,000, so the monthly payment becomes 1,706.58 and total interest 344,370.12.
FAQ
Does the monthly figure include taxes and insurance?
No. It covers principal and interest only. Property tax, home insurance and mortgage insurance are billed separately in most countries and can add hundreds per month.
What is the difference between equal payments and equal principal?
This calculator uses equal payments, so the monthly amount never changes. The equal principal method starts higher and falls each month, and ends up paying less total interest.
Why is almost nothing paid off in the first year?
Interest is charged on the outstanding balance, which is at its largest on day one. At 6.5% a 240,000 loan costs about 1,300 in interest in the first month alone, so only the remainder reduces the balance.
How much does an extra payment save?
Every extra unit of principal removes all future interest on it, roughly the rate times the years remaining. Paying early in the term saves far more than the same amount paid near the end.
Disclaimer: This tool is an estimate based on published rates and common rules. Fees, tax rates and platform policies change often, and the result is not tax, financial or legal advice. Always confirm with official sources or a qualified professional.