How a mortgage payment is estimated

This calculator uses the standard fixed-rate amortisation formula. It estimates principal and interest only, based on the loan principal, annual interest rate and number of monthly payments.

Worked example: $300,000 at 6.5% for 30 years

For a fixed-rate loan of $300,000, an annual rate of 6.5% and a 30-year term (360 monthly payments), the estimated principal-and-interest payment is about $1,896.20 per month. Total scheduled payments are about $682,633.47, of which about $382,633.47 is interest. Figures are rounded to cents for display; a lender may differ because of payment dates, rounding and loan-specific terms.

What is not included?

The estimate does not include property taxes, homeowners insurance, mortgage insurance, homeowners association fees, closing costs, variable-rate changes or lender fees. Your lender’s official Loan Estimate will contain the terms that apply to you. The Consumer Financial Protection Bureau explains mortgage principal-and-interest payments and why the total monthly housing payment is often higher.

Frequently asked questions

What if the interest rate is zero? The loan amount is divided evenly across the scheduled monthly payments.

Is this a loan offer? No. It is an educational estimate, not a quote, approval or financial recommendation.

Financial disclaimer: This calculator provides estimates only. Verify all assumptions and loan terms with a qualified mortgage professional.

Related calculator: Compare savings growth with the Compound Interest Calculator.