Total Interest Paid Calculator

Calculate the total interest you'll pay over the life of your mortgage. See how much interest you'll pay and how to reduce it with extra payments and different strategies.

Total Interest Paid Calculator
Calculate the total interest you'll pay over the life of your mortgage. See how different strategies can reduce your total interest costs.
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
Understanding Total Interest Paid on Your Mortgage
Learn about total interest costs, how to calculate them, and strategies to reduce the total interest you pay over the life of your loan.

What is Total Interest Paid?

Total interest paid is the total amount of interest you'll pay over the entire life of your mortgage loan. This is in addition to the principal amount you borrowed and represents the cost of borrowing money from your lender.

How Total Interest is Calculated

  • Principal Amount: The original loan amount you borrowed
  • Interest Rate: The annual interest rate on your mortgage
  • Loan Term: The length of time you have to repay the loan
  • Payment Frequency: How often you make payments (monthly, bi-weekly, etc.)
  • Extra Payments: Any additional payments you make toward principal

Factors That Affect Total Interest Paid

  • Interest Rate: Higher rates mean more total interest
  • Loan Term: Longer terms typically mean more total interest
  • Loan Amount: Larger loans mean more total interest
  • Payment Frequency: More frequent payments can reduce total interest
  • Extra Payments: Additional principal payments reduce total interest

Why Total Interest Matters

  • Cost Awareness: Understand the true cost of your mortgage
  • Financial Planning: Plan for long-term financial goals
  • Comparison Shopping: Compare different loan options
  • Savings Strategies: Identify ways to reduce total interest
  • Refinancing Decisions: Evaluate refinancing opportunities

Strategies to Reduce Total Interest Paid

  • Extra Principal Payments: Make additional payments toward principal
  • Bi-weekly Payments: Make 26 half-payments per year instead of 12 full payments
  • Round Up Payments: Round up your monthly payment to the nearest hundred
  • Lump Sum Payments: Use windfalls like bonuses or tax refunds for extra payments
  • Refinancing: Refinance to a lower interest rate when rates drop

Calculating Total Interest Paid

Our total interest paid calculator helps you understand:

  • Total interest you'll pay over the life of your loan
  • Monthly interest payments vs. principal payments
  • How extra payments reduce total interest
  • Comparison of different payment strategies
  • Interest savings from different approaches

Example: Total Interest Impact

For a $300,000 mortgage at 4% interest for 30 years:

  • Monthly payment: $1,432.25
  • Total payments: $515,608.52
  • Total interest: $215,608.52
  • Interest is 42% of total payments

Tips for Reducing Total Interest

  • Make extra principal payments whenever possible
  • Consider bi-weekly payments to make an extra payment per year
  • Use windfalls like bonuses for extra payments
  • Refinance when interest rates drop significantly
  • Consider shorter loan terms if you can afford higher payments

Important Considerations

  • Ensure you have an emergency fund before making extra payments
  • Consider if you have higher-interest debt to pay off first
  • Factor in opportunity costs of extra mortgage payments
  • Review your mortgage terms for prepayment penalties
  • Consult with a financial advisor for personalized advice