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$300,000 Mortgage Over 15 Years
A 15-year mortgage of $300,000 means 180 equal payments. Start with a rate of 5.5 percent and adjust it as you like.
That makes $2,451.25 a month at the start. The interest over the whole loan comes to $141,225.
How the payment is worked out
Lenders use the standard loan formula. The yearly rate of 5.5 percent becomes a monthly rate of 0.4583 percent. The term of 15 years becomes 180 payments. The payment is the loan of $300,000 times the monthly rate, divided by one minus one over the growth factor, where the growth factor is one plus the monthly rate, multiplied by itself 180 times.
Worked example
Work it through with $300,000, 5.5 percent and 15 years. Each payment is $2,451.25. The first one sends $1,375.00 to interest and the remaining $1,076.25 to principal.
After 8 years of payments you would still owe $170,581. Total interest over the whole loan is $141,225.
Questions about this calculator
Does the $2,451.25 payment cover property tax and insurance?
No. The $2,451.25 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 $300,000 mortgage over 15 years or save it elsewhere?
The calculator can only show what extra payments do. On this loan an extra $250 a month saves $21,014 of interest and ends the loan 2 years sooner. Whether that beats saving or investing the money depends on your other goals and on what you could earn elsewhere.
What if the rate on a $300,000 mortgage over 15 years were one point higher?
The payment would rise from $2,451.25 to $2,613.32, which is $162.07 more each month. One point lower would give $2,294.98.
Would paying $250 extra each month shorten a $300,000 mortgage over 15 years?
Yes. On this $300,000 loan an extra $250 each month ends the loan 2 years sooner and saves $21,014 of interest.
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This page is for education only and is not financial or tax advice.