Budgeting for your target home cost before you start your house search can give you an advantage in understanding your true expected cost. This starts with knowing what kinds of interest rates your local lenders have to offer and what your monthly payment would be. As of April 15, 2025 the current average interest rate for a 30-year fixed mortgage is sitting at 6.86% according to Bankrate. However, your rate also depends on your personal financial factors and credit history.
Enter your loan amount, term and interest rate into our calculator to see your monthly payment and your total cost, including principal and interest.
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At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $1,996 a month, while a 15-year might cost $2,696 a month.
On a 30-year mortgage with a 7.00% fixed interest rate, you’ll pay $418,527 in interest over the loan’s lifetime. That’s about two-thirds of what you borrowed in interest.
If you instead opt for a 15-year mortgage, you’ll pay $185,367 in interest over the loan’s lifetime — or about half the interest you’d pay on a 30-year mortgage.
Even a quarter of a percent difference in your interest rate on a $300,000 loan can add $40 to $50 a month onto your mortgage payment and cost you more than $15,000 in interest over the loan’s lifetime. But many borrowers don’t take the time to shop around for the best rate.
And as government surveys and studies have shown, interest rates offered between lenders can widely vary. Even different branches from a single lender might offer different rates for the same loan and borrower.
How much income you need depends on your down payment, loan terms, taxes and insurance. With a 20% down payment on a 30-year mortgage and a 7.00% interest rate, you need a household income of $70,000 yearly or more before tax.
When you take out a mortgage, you agree to pay the principal and interest over the loan’s lifetime. Your interest rate is applied to your balance, and as you pay down your balance, the amount you pay in interest changes.
Amortization means that at the beginning of your loan, a big percentage of your payment is applied to interest. With each subsequent payment, you pay more toward your balance.
Estimate your monthly loan repayments on a $300,000 mortgage at 7.00% fixed interest with our amortization schedule over 15 and 30 years.
| Year | Beginning balance | Monthly payment | Total interest paid | Total principal paid | Total paid throughout the year | Remaining balance |
|---|---|---|---|---|---|---|
| 1 | $300,000 | $1,996 | $20,903 | $3,047 | $23,951 | $296,953 |
| 2 | $296,953 | $1,996 | $20,683 | $3,268 | $23,951 | $293,685 |
| 3 | $293,685 | $1,996 | $20,447 | $3,504 | $23,951 | $290,181 |
| 4 | $290,181 | $1,996 | $20,194 | $3,757 | $23,951 | $286,424 |
| 5 | $286,424 | $1,996 | $19,922 | $4,029 | $23,951 | $282,395 |
| 6 | $282,395 | $1,996 | $19,631 | $4,320 | $23,951 | $278,075 |
| 7 | $278,075 | $1,996 | $19,318 | $4,632 | $23,951 | $273,442 |
| 8 | $273,442 | $1,996 | $18,984 | $4,967 | $23,951 | $268,475 |
| 9 | $268,475 | $1,996 | $18,625 | $5,326 | $23,951 | $263,149 |
| 10 | $263,149 | $1,996 | $18,239 | $5,711 | $23,951 | $257,437 |
| 11 | $257,437 | $1,996 | $17,827 | $6,124 | $23,951 | $251,313 |
| 12 | $251,313 | $1,996 | $17,384 | $6,567 | $23,951 | $244,746 |
| 13 | $244,746 | $1,996 | $16,909 | $7,042 | $23,951 | $237,704 |
| 14 | $237,704 | $1,996 | $16,400 | $7,551 | $23,951 | $230,153 |
| 15 | $230,153 | $1,996 | $15,854 | $8,097 | $23,951 | $222,057 |
| 16 | $222,057 | $1,996 | $15,269 | $8,682 | $23,951 | $213,375 |
| 17 | $213,375 | $1,996 | $14,641 | $9,310 | $23,951 | $204,065 |
| 18 | $204,065 | $1,996 | $13,968 | $9,983 | $23,951 | $194,082 |
| 19 | $194,082 | $1,996 | $13,247 | $10,704 | $23,951 | $183,378 |
| 20 | $183,378 | $1,996 | $12,473 | $11,478 | $23,951 | $171,900 |
| 21 | $171,900 | $1,996 | $11,643 | $12,308 | $23,951 | $159,592 |
| 22 | $159,592 | $1,996 | $10,753 | $13,198 | $23,951 | $146,395 |
| 23 | $146,395 | $1,996 | $9,799 | $14,152 | $23,951 | $132,243 |
| 24 | $132,243 | $1,996 | $8,776 | $15,175 | $23,951 | $117,069 |
| 25 | $117,069 | $1,996 | $7,679 | $16,272 | $23,951 | $100,797 |
| 26 | $100,797 | $1,996 | $6,503 | $17,448 | $23,951 | $83,349 |
| 27 | $83,349 | $1,996 | $5,242 | $18,709 | $23,951 | $64,640 |
| 28 | $64,640 | $1,996 | $3,889 | $20,062 | $23,951 | $44,579 |
| 29 | $44,579 | $1,996 | $2,439 | $21,512 | $23,951 | $23,067 |
| 30 | $23,067 | $1,996 | $884 | $23,067 | $23,951 | $0 |
| Year | Beginning balance | Monthly payment | Total interest paid | Total principal paid | Total paid throughout the year | Remaining balance |
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| 1 | $300,000 | $2,696 | $20,628 | $11,729 | $32,358 | $288,271 |
| 2 | $288,271 | $2,696 | $19,781 | $12,577 | $32,358 | $275,693 |
| 3 | $275,693 | $2,696 | $18,871 | $13,487 | $32,358 | $262,207 |
| 4 | $262,207 | $2,696 | $17,896 | $14,461 | $32,358 | $247,745 |
| 5 | $247,745 | $2,696 | $16,851 | $15,507 | $32,358 | $232,238 |
| 6 | $232,238 | $2,696 | $15,730 | $16,628 | $32,358 | $215,611 |
| 7 | $215,611 | $2,696 | $14,528 | $17,830 | $32,358 | $197,781 |
| 8 | $197,781 | $2,696 | $13,239 | $19,119 | $32,358 | $178,662 |
| 9 | $178,662 | $2,696 | $11,857 | $20,501 | $32,358 | $158,161 |
| 10 | $158,161 | $2,696 | $10,375 | $21,983 | $32,358 | $136,178 |
| 11 | $136,178 | $2,696 | $8,786 | $23,572 | $32,358 | $112,606 |
| 12 | $112,606 | $2,696 | $7,082 | $25,276 | $32,358 | $87,330 |
| 13 | $87,330 | $2,696 | $5,254 | $27,103 | $32,358 | $60,226 |
| 14 | $60,226 | $2,696 | $3,295 | $29,063 | $32,358 | $31,164 |
| 15 | $31,164 | $2,696 | $1,194 | $31,164 | $32,358 | $0 |
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