$500k Mortgage at 6%: Monthly Payment

$2,997.75 per month

A $500,000 30-year mortgage at 6% costs $2,997.75 a month in principal and interest.

Change the numbers to try your own:

The monthly payment formula

M = P × r ÷ (1 − (1 + r)^−n) where r = annual rate ÷ 12 and n = number of months

Convert the annual interest rate to a monthly rate: 6% ÷ 12 = 0.5% = 0.005.
Count the months: a 30-year loan has 360 payments.
Plug the loan amount P, rate r and months n into the formula.
Each payment covers that month's interest first; the rest pays down the balance.

Monthly payment (principal and interest) for a 30-year fixed loan
Loan amount	5%	6%	7%
$200,000	$1,073.64	$1,199.10	$1,330.60
$250,000	$1,342.05	$1,498.88	$1,663.26
$300,000	$1,610.46	$1,798.65	$1,995.91
$400,000	$2,147.29	$2,398.20	$2,661.21
$500,000	$2,684.11	$2,997.75	$3,326.51

How much interest is paid in total?

About $579,191 over 30 years if you make only the regular payments.

Does the payment include taxes and insurance?

No. It is principal and interest only. Property tax, home insurance and PMI are extra.

How do extra payments help?

Extra money goes straight to the balance, so less interest builds up and the loan ends sooner.

15-year or 30-year?

A 15-year loan has higher monthly payments but far less total interest.