Mortgage & Loan Calculator

Using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12).

A 15-year mortgage builds equity faster and costs far less in total interest — typically 50–60% less than a 30-year — but payments are 30–45% higher. Choose 15-year if you can comfortably afford the payments. Choose 30-year if lower monthly payments give you important cash-flow flexibility or if you plan to invest the difference.

Private Mortgage Insurance (PMI) protects the lender if you default. It's required when your loan-to-value ratio exceeds 80% (i.e., down payment less than 20%). Under federal law (Homeowners Protection Act), PMI must be automatically cancelled when you reach 78% LTV based on the original amortization schedule. You can request cancellation at 80% LTV.

A month-by-month breakdown of every payment showing how much goes to interest vs. principal, and the remaining balance. At the start of a 30-year mortgage, roughly 80% of each payment is interest. By year 20, that ratio flips.

The traditional guideline is that your monthly housing costs (mortgage + taxes + insurance) should not exceed 28% of your gross monthly income, and total debt should stay under 36% (the "28/36 rule"). At 6.8% interest, a 30-year loan of $360,000 costs ~$2,341/month P&I — meaning you'd want gross income of ~$8,375/month ($100,500/year) to qualify comfortably.

Yes, significantly. On a $400,000 30-year loan at 6.8%, adding just $200/month to your payment saves over $68,000 in interest and pays off the loan 5 years early. Any extra payment goes directly to principal reduction, eliminating future interest on that amount.