What does a $300,000 mortgage at 6.5% over 30 years cost per month?
A $300,000 mortgage at 6.5% over 30 years (repayment) costs $1,896.20 a month. Over the full term you'd pay $382,637 in interest — 128% of the amount borrowed — for a total of $682,637.
Amortization schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $19,401 | $3,353 | $296,647 |
| 2 | $19,177 | $3,578 | $293,069 |
| 3 | $18,937 | $3,817 | $289,252 |
| 4 | $18,681 | $4,073 | $285,179 |
| 5 | $18,409 | $4,346 | $280,833 |
| 6 | $18,118 | $4,637 | $276,197 |
| 7 | $17,807 | $4,947 | $271,249 |
| 8 | $17,476 | $5,279 | $265,971 |
| 9 | $17,122 | $5,632 | $260,338 |
| 10 | $16,745 | $6,009 | $254,329 |
| 30 | $782 | $21,978 | $0 |
Computed with the standard amortisation formula M = P·r(1+r)n/((1+r)n−1). Early payments are mostly interest; the split shifts toward principal as the balance falls.
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Frequently asked questions
How is the monthly mortgage payment calculated?
Mortgage repayments use the standard amortisation formula M = P·r(1+r)ⁿ/((1+r)ⁿ−1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Early payments are mostly interest; the split shifts toward principal as the balance falls.
What is amortisation?
Amortisation is the process of paying off a debt through regular scheduled payments over time. Each payment covers accrued interest first, with the remainder reducing the outstanding balance. The schedule above shows exactly how this split changes each year.
How much could overpaying reduce my mortgage?
Even modest regular overpayments can significantly cut total interest and shorten the term. Overpaying by 10% of the standard monthly payment on a 25-year mortgage can typically reduce the term by 3–4 years and save tens of thousands in interest. Use the Mortgage Overpayment Calculator to model your specific scenario.
What is the difference between a repayment and an interest-only mortgage?
With a repayment mortgage, each payment covers both interest and a portion of the principal, so the balance falls to zero by the end of the term. With an interest-only mortgage, payments cover only the interest and the full loan amount remains due at the end. This example shows a repayment mortgage.