MortgageCalc

Simple Interest Mortgage Calculator

Calculate your mortgage payments using simple interest. Compare simple interest vs compound interest and see how it affects your total cost.

Loan Details
Enter your mortgage information to get accurate calculations

$300,000

20.0% of home price ($60,000)

Additional Costs
Monthly expenses beyond mortgage

$3,000

$1,200

Required if down payment < 20% ($0)

$0

Extra Payments
Pay off your mortgage faster

Monthly Payment

$1,517

Principal & Interest

Total Monthly

$1,867

Including all costs

Total Interest

$306,107

Over life of loan

Total Cost

$546,107

Principal + Interest

Payment Breakdown

Total Cost

$546,107
Over 30 years

Principal

$240,000
43.9% of total

Interest

$306,107
56.1% of total

Payment Breakdown

Principal43.9%
$240,000
Interest56.1%
$306,107
Interest vs Principal Ratio
You'll pay 56% in interest
That's $66,107 more than the original loan amount
Amortization Schedule
See how your loan balance decreases over time
YearPaymentPrincipalInterestBalance
1$1,517$217$1,300$239,783
1$1,517$230$1,287$237,317
2$1,517$246$1,271$234,455
3$1,517$262$1,255$231,401
4$1,517$280$1,237$228,143
5$1,517$298$1,219$224,666
6$1,517$318$1,199$220,957
7$1,517$340$1,177$216,999
8$1,517$362$1,155$212,776
9$1,517$387$1,130$208,270
10$1,517$413$1,104$203,463
11$1,517$440$1,077$198,333
12$1,517$470$1,047$192,860
13$1,517$501$1,016$187,021
14$1,517$535$982$180,790
15$1,517$571$946$174,142
16$1,517$609$908$167,049
17$1,517$650$867$159,481
18$1,517$693$824$151,405
19$1,517$740$777$142,790
20$1,517$789$728$133,597
21$1,517$842$675$123,788
22$1,517$898$619$113,323
23$1,517$958$559$102,156
24$1,517$1,023$494$90,242
25$1,517$1,091$426$77,530
26$1,517$1,164$353$63,967
27$1,517$1,242$275$49,495
28$1,517$1,325$192$34,054
29$1,517$1,414$103$17,579
30$1,517$1,509$8$0

What is Simple Interest?

Simple interest is calculated only on the principal amount of a loan, not on any previously earned interest. This differs from compound interest, which is calculated on both the principal and accumulated interest.

Simple Interest vs Compound Interest

Simple Interest

Interest calculated only on the original principal amount. More predictable and often lower total cost.

Compound Interest

Interest calculated on principal plus previously earned interest. Can result in higher total costs over time.

Simple Interest Formula

The simple interest formula is:

I = P × R × T

Where: I = Interest, P = Principal, R = Rate, T = Time

Benefits of Simple Interest

  • More predictable payment amounts
  • Easier to calculate and understand
  • Lower total interest costs in many cases
  • Transparent interest calculation
  • No compounding effects
  • Simpler loan structure

When to Use Simple Interest

  • Short-term loans where compounding has minimal effect
  • When you want predictable, fixed payments
  • For loans where you plan to pay off early
  • When transparency in interest calculation is important
  • For certain types of personal loans
  • When comparing loan options

Example: Simple Interest Calculation

For a $200,000 loan at 5% simple interest for 30 years: Monthly interest = $200,000 × 0.05 ÷ 12 = $833.33. This means your monthly payment would be $833.33 in interest plus principal. Our calculator helps you understand how simple interest affects your total loan cost compared to traditional mortgage calculations.