How to Calculate Your Monthly Mortgage Payment
Your monthly mortgage payment depends on the loan amount, interest rate, and term. Here's the formula, worked examples, and a reference table for common loan amounts.
The Formula
M = P x [r(1+r)^n] / [(1+r)^n - 1]
P = loan principal, r = monthly rate (annual / 12), n = total payments (years x 12).
Example: $300,000 at 7% for 30 years = $1,995.91/month
Monthly Payment by Loan and Rate
| Loan | 6% 30yr | 7% 30yr | 8% 30yr | 7% 15yr |
|---|---|---|---|---|
| $150,000 | $899 | $998 | $1,101 | $1,348 |
| $250,000 | $1,499 | $1,663 | $1,834 | $2,247 |
| $300,000 | $1,799 | $1,996 | $2,201 | $2,696 |
| $400,000 | $2,398 | $2,661 | $2,935 | $3,595 |
| $500,000 | $2,998 | $3,327 | $3,669 | $4,494 |
Total Interest Over the Loan Life
| Loan | Rate | Term | Monthly | Total Interest |
|---|---|---|---|---|
| $300,000 | 6% | 30yr | $1,799 | $347,515 |
| $300,000 | 7% | 30yr | $1,996 | $418,527 |
| $300,000 | 7% | 15yr | $2,696 | $185,367 |
What Affects Your Payment
- Loan amount: Larger down payment directly reduces monthly payment.
- Rate: 1% difference on $300,000 = ~$180/month and $65,000+ total interest.
- Term: 15-year has higher payments but you pay roughly half the total interest of a 30-year.
Calculate your exact monthly mortgage payment and total interest.
Mortgage Calculator →