$1,000,000 loan: monthly payment by rate
| Rate | 30-year | 15-year | Total interest (30y) |
|---|---|---|---|
| 5% | $5,368.22 | $7,907.94 | $932,558 |
| 5.5% | $5,677.89 | $8,170.83 | $1,044,040 |
| 6% | $5,995.51 | $8,438.57 | $1,158,382 |
| 6.5% | $6,320.68 | $8,711.07 | $1,275,445 |
| 7% | $6,653.02 | $8,988.28 | $1,395,089 |
| 7.5% | $6,992.15 | $9,270.12 | $1,517,172 |
| 8% | $7,337.65 | $9,556.52 | $1,641,552 |
Worked example
At 6.5% for 30 years, r = 6.5 ÷ 12 ÷ 100 = 0.0054167 and n = 360, so the payment is $6,320.68 a month and you would pay $1,275,445 in interest over the loan. A 15-year term raises the payment to $8,711.07 but cuts interest to $567,993, saving $707,452.
Buying a $1,000,000 house vs borrowing $1,000,000
If $1,000,000 is the price and you put 20% down, you borrow $800,000: $5,056.54 a month at 6.5% (30 years). Borrowing $1,000,000 with 20% down means a home price of about $1,250,000.
Under the traditional 28% guideline (housing cost ≤ 28% of gross income), a $6,320.68 principal-and-interest payment alone suggests a gross income of about $270,886 a year; taxes and insurance push that higher.
Rates in the tables are a range for comparison, not current market quotes. Payments are principal and interest only unless stated.
Related
Frequently asked questions
What is the monthly payment on a $1,000,000 mortgage?
$6,320.68 at 6.5% for 30 years, or $8,711.07 for 15 years (principal and interest).
How much interest on a $1,000,000 mortgage?
About $1,275,445 over 30 years at 6.5%.
What income do I need for a $1,000,000 mortgage?
Roughly $270,886+ a year under the 28% guideline, before taxes and insurance.