What is the monthly payment on a $300,000 30-year mortgage?

At a 7% interest rate, the monthly payment on a $300,000 30-year mortgage is $1,995.91. Your total interest over 30 years is $418,527, and your total cost is $718,527. In Month 1, only $246 of your $1,996 payment goes to principal — the rest is interest.

How much of my 30-year mortgage payment goes to interest vs principal?

In the early years of a 30-year mortgage, the vast majority of each payment is interest. At 7%, Month 1 of a $300K loan: $1,750 is interest (87.7%) and only $246 is principal (12.3%). This ratio gradually shifts — by Year 21, roughly half goes to principal. This front-loading is the primary financial disadvantage of the 30-year term.

Can I pay off a 30-year mortgage early?

Yes — there is no prepayment penalty on most modern conventional mortgages. Making extra principal payments reduces your balance faster, cuts total interest, and shortens your loan term. Even $100/month extra on a $300K loan at 7% saves roughly $40,000 in interest and pays off 4 years early.

Is a 30-year or 15-year mortgage better?

It depends entirely on your financial situation and priorities. The 30-year is better if: budget flexibility matters, you want to invest the payment difference, or you need a lower payment to qualify for the loan. The 15-year is better if: you can comfortably afford the higher payment, building equity fast is a priority, or you want to be mortgage-free before retirement.

What happens to my 30-year mortgage if rates drop?

If market interest rates drop significantly after you take a 30-year mortgage, you can refinance to a lower rate. The main cost is closing costs (typically $3,000-$8,000) and restarting your amortization clock. Use our Mortgage Refinance Calculator to determine your break-even point before refinancing.

30-Year Mortgage Calculator

The 30-year mortgage is the most popular home loan in the United States — and for good reason. It offers the lowest monthly payment of any fixed-rate mortgage term, making homeownership accessible to the widest range of buyers. On a $300,000 loan at 7%, your monthly payment is $1,996 — manageable fo...

30-YEAR MORTGAGE

Loan Amount

Annual Interest Rate (%) — optional

🔒

Term: 30 Years (fixed)

For a 15-year comparison, use our 15 vs 30 Year Calculator

LIVE DIAGRAM

Enter a loan amount to see your payment breakdown

Created with❤️byeaglecalculator.com

HOW TO USE

1
Enter your Loan Amount — the total amount you plan to borrow, not the home price.
2
The Interest Rate is pre-filled at 7% — a typical 30-year rate. Update with your actual lender quote.
3
Your monthly payment, total interest, and total cost appear instantly.
4
Check the orange comparison banner to see how much more interest you pay vs a 15-year mortgage.
5
Use the balance curve to understand how slowly equity builds in the early years of a 30-year loan.

WORKED EXAMPLE

$300,000 loan at 7% for 30 years. Monthly rate r = 7% / 12 / 100 = 0.005833. Monthly Payment M = $300,000 × 0.005833 × (1.005833)^360 / ((1.005833)^360 - 1) = $1,995.91. Total paid = $1,995.91 × 360 = $718,526.69. Total interest = $718,526.69 - $300,000 = $418,526.69. Month 1: Interest = $300,000 × 0.005833 = $1,750. Principal = $1,995.91 - $1,750 = $245.91. Balance after Month 1 = $299,754.09. Notice: only $246 of $1,996 reduces the loan in the first month.

REFERENCE FORMULAS

FORMULA REFERENCE TABLE

NAME	FORMULA	DESCRIPTION
Monthly Payment	M = P × r(1+r)³⁶⁰ / ((1+r)³⁶⁰ - 1)	P = loan, r = monthly rate (annual/1200), n = 360 months fixed
Total Interest	Interest = (M × 360) - P	Total interest paid over the full 30-year term
Month 1 Interest	Interest₁ = P × (Annual Rate / 12 / 100)	Interest portion of first payment — highest of any payment

FREQUENTLY ASKED QUESTIONS

RELATED CALCULATORS

15 vs 30 Year Mortgage Calculator

Calculate instantly →

15-Year Mortgage Calculator

Calculate instantly →

Mortgage Affordability Calculator

Calculate instantly →

Mortgage Amortization Schedule

Calculate instantly →

MORE MORTGAGE CALCULATORS

Monthly Mortgage Payment Calculator

Calculate instantly →

Mortgage Affordability Calculator

Calculate instantly →

Mortgage Refinance Calculator

Calculate instantly →

Rent vs Buy Calculator

Calculate instantly →

Mortgage Amortization Schedule

Calculate instantly →

UK Stamp Duty Calculator (SDLT)

Calculate instantly →

Down Payment Calculator

Calculate instantly →

Australia Stamp Duty Calculator

Calculate instantly →

15 vs 30 Year Mortgage Calculator

Calculate instantly →

15-Year Mortgage Calculator

Calculate instantly →

Was this calculator helpful?

Last updated: April 25, 2026 · Formula verified by EagleCalculator team · Eagle-eyed accuracy for every calculation.