True Total Cost of Your Mortgage
A $500,000 mortgage doesn't cost $500,000 — it costs $872,000 over 25 years at 5%. See the full picture: total interest, how term length and rate multiply your costs, and what strategies cut your lifetime bill the most.
True Cost: $500k Mortgage at 5%
25-year term
$872,400
$372,400 in interest alone
30-year term
$966,240
$93,840 more than 25-year
Interest % of purchase
74%
Interest = 74% of loan amount
Calculate Your Total Mortgage Cost
Enter your details below — the results show your total interest paid over the full amortization period.
Total Cost by Amortization Length
Based on a $500,000 mortgage at 5%. Every extra year of amortization costs you more in total interest.
| Term | Monthly Payment | Total Interest | Total Cost | vs 25-Year |
|---|---|---|---|---|
| 15 years | $3,591/mo | $146,380 | $646,380 | -$226,020 |
| 20 years | $3,082/mo | $239,680 | $739,680 | -$132,720 |
| 25 years(baseline) | $2,908/mo | $372,400 | $872,400 | — |
| 30 years | $2,684/mo | $466,240 | $966,240 | +$93,840 |
Total Cost by Interest Rate
Based on a $500,000 mortgage over 25 years. The rate you secure at signing ripples through the entire lifetime of your loan.
| Rate | Monthly Payment | Total Interest | Total Cost | vs 5% Rate |
|---|---|---|---|---|
| 4% | $2,626/mo | $287,800 | $787,800 | -$84,600 |
| 4.5% | $2,762/mo | $328,600 | $828,600 | -$43,800 |
| 5%(baseline) | $2,908/mo | $372,400 | $872,400 | — |
| 5.5% | $3,044/mo | $413,200 | $913,200 | +$40,800 |
| 6% | $3,199/mo | $459,700 | $959,700 | +$87,300 |
| 7% | $3,533/mo | $559,900 | $1,059,900 | +$187,500 |
Top 4 Ways to Reduce Your Total Mortgage Cost
Get the Lowest Rate Possible
Save up to $150k+The single biggest lever. A 1% lower rate on a $500k mortgage saves $93,000 over 25 years. Use a mortgage broker, improve your credit, and shop at least 3 lenders.
Rate Strategy Guide →Choose a Shorter Amortization
Save $93k–$225kGoing from 30 to 25 years saves $93,840 on a $500k mortgage. From 25 to 15 years saves $226,020 — but raises your monthly payment by $683. Choose the shortest term you can comfortably afford.
Compare Term Lengths →Make Regular Extra Payments
Save $50k–$135kAn extra $500/month on a $500k mortgage saves $134,800 and cuts 6.8 years off your term. Even $100 extra saves $35,200 and 1.5 years.
Extra Payments Calculator →Switch to Accelerated Bi-Weekly
Save ~$59k, 3 yearsNo extra monthly cash needed. Bi-weekly payments result in one extra month's payment per year, saving $58,900 and 2.9 years on a $500k mortgage.
See Bi-Weekly Savings →Don't Forget These Hidden Mortgage Costs
Home Inspection
$500–$2,000
Essential before purchase. Undetected issues can cost $10,000–$100,000+.
Land Transfer Tax
1.5–2.5% of price
Paid on closing. First-time buyers get a partial rebate in most provinces.
Legal Fees
$1,500–$4,000
Real estate lawyer for title search, closing documents, and title insurance.
Home Appraisal
$300–$500
Lenders often require a professional appraisal to confirm property value.
Property Tax Increase
$150–$500/yr
Taxes rise yearly. Factor in 2–3% annual increases in your long-term budget.
Maintenance Reserve
1–3% of value/yr
Budget 1–3% of your home's value annually for repairs, systems, and upgrades.
Frequently Asked Questions
At 5% interest over 25 years: $372,400 in total interest (74% of the loan amount). Over 30 years at 5%, that rises to $466,240. At 4%, the 25-year interest drops to $287,800. The rate and term length are the two biggest drivers of your total interest cost.
Because interest compounds over time. Early in your mortgage, nearly all of your payment goes to interest — only a small fraction reduces your principal. This is called amortization front-loading.
Example: In month 1 of a $500k mortgage at 5%, about $2,083 of your $2,908 payment is interest. Only $825 reduces your principal. This ratio gradually shifts over 25 years.
Both matter, but for different reasons. Monthly payment determines what you can qualify for and what fits your budget. Total cost determines your long-term wealth impact. A 30-year mortgage feels more affordable monthly but can cost $100,000+ more over your lifetime. The right balance depends on your income stability, investment alternatives, and how long you plan to stay in the home.
1) Get the lowest possible rate (broker + good credit). 2) Choose the shortest amortization you can sustain. 3) Switch to accelerated bi-weekly payments immediately. 4) Make your full annual prepayment privilege as a lump sum each year. Combining these four strategies on a $500k mortgage at 5% could reduce your total cost by $150,000–$200,000.
Only the mortgage amount (purchase price minus down payment) affects your interest cost. A $600,000 home with $200,000 down has the same interest cost as a $500,000 home with $100,000 down — both are $400,000 mortgages. The purchase price matters primarily in determining how much down payment you need.