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$100,000 Mortgage Over 20 Years
Use this page when you are weighing a $100,000 mortgage with a 20-year term. It starts from a 6 percent rate. Change it to match your own.
On the starting figures the payment is $716.43 a month and the total interest is $71,943.
How the payment is worked out
The standard loan formula has three inputs: the amount of $100,000, the monthly rate of 0.5 percent and 240 payments. Multiply the amount by the rate. Then divide the result by one minus one over the growth factor, which is one plus the monthly rate raised to the power of 240.
Worked example
Worked through, $100,000 at 6 percent for 20 years gives a payment of $716.43. The first month splits into $500.00 of interest and $216.43 of principal.
Over the whole loan you pay $171,943. About 72 cents of each borrowed dollar goes to interest.
Questions about this calculator
Would paying $70 extra each month shorten a $100,000 mortgage over 20 years?
Yes. On this $100,000 loan an extra $70 each month ends the loan 3 years 1 month sooner and saves $12,686 of interest.
Is 20 years the right length for a $100,000 mortgage?
It depends on the monthly payment you can carry. At 6 percent this term costs $716.43 a month. A 30-year term would cost $599.55 a month and $115,838 in interest, compared with $71,943 over 20 years.
Does the $716.43 payment cover property tax and insurance?
No. The $716.43 covers principal and interest only. Tax, insurance and any mortgage insurance would sit on top of it.
Is it better to put extra money toward a $100,000 mortgage over 20 years or save it elsewhere?
The calculator can only show what extra payments do. On this loan an extra $70 a month saves $12,686 of interest and ends the loan 3 years 1 month sooner. Whether that beats saving or investing the money depends on your other goals and on what you could earn elsewhere.
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This page is for education only and is not financial or tax advice.