Home Financing
Mortgage Calculator and Home Purchase Planner
Compare two fixed-rate mortgage offers, plan your down payment and extra repayments, and explore monthly housing costs, loan balances and the full calculation. Results update as you type.
The currency changes formatting only, not exchange rates.
Mortgage offer A
Home and mortgage details
Financed closing fees increase the loan balance and are repaid through installments. Upfront closing fees are paid separately. Enter fees once; do not include prepaid taxes or insurance again if they are already included in the recurring amounts.
Enter the contractual interest rate, not a fee-inclusive APR. This model uses equal monthly periods and a fixed rate; it does not reconstruct a lender’s statutory APR or daily-interest statement.
Homeownership costs
Enter your local costs. Taxes and insurance are not universal mortgage fees. These expenses remain constant in this estimate and continue after the loan is repaid.
Optional mortgage insurance (PMI)
The premium is modeled as a fixed amount using the opening loan balance. US modes apply only when that balance exceeds 80% of the original value. Custom mode follows the entered last premium month. Other mortgage insurance systems are not modeled.
US estimates assume a qualifying conventional loan, current payments and all required conditions. An 80% request is not automatic approval; the scenario assumes cancellation is approved. The 78% automatic estimate uses the original scheduled balance, not accelerated payments, with a midpoint limit. FHA, VA and lender-paid insurance have different rules. Verify your lender’s disclosures.
For budgeting, the model charges PMI through the qualifying threshold payment and removes it from the next modeled payment; the midpoint limit ends charges before the following midpoint month. Actual premium billing and cancellation dates can differ.
Extra principal payments
Applied once only if extra payments repay the loan before the contractual final month. This does not model penalties on every partial prepayment. Check your contract.
Extra payments are applied to principal after that month’s interest. The regular installment stays unchanged; the final payment is capped at the amount owed.
Housing and total debt ratios use required payments, not voluntary extra repayments or maintenance savings. They are estimates, not lender qualification or country-specific approval limits.
Mortgage offer B
Home and mortgage details
Financed closing fees increase the loan balance and are repaid through installments. Upfront closing fees are paid separately. Enter fees once; do not include prepaid taxes or insurance again if they are already included in the recurring amounts.
Enter the contractual interest rate, not a fee-inclusive APR. This model uses equal monthly periods and a fixed rate; it does not reconstruct a lender’s statutory APR or daily-interest statement.
Homeownership costs
Enter your local costs. Taxes and insurance are not universal mortgage fees. These expenses remain constant in this estimate and continue after the loan is repaid.
Optional mortgage insurance (PMI)
The premium is modeled as a fixed amount using the opening loan balance. US modes apply only when that balance exceeds 80% of the original value. Custom mode follows the entered last premium month. Other mortgage insurance systems are not modeled.
US estimates assume a qualifying conventional loan, current payments and all required conditions. An 80% request is not automatic approval; the scenario assumes cancellation is approved. The 78% automatic estimate uses the original scheduled balance, not accelerated payments, with a midpoint limit. FHA, VA and lender-paid insurance have different rules. Verify your lender’s disclosures.
For budgeting, the model charges PMI through the qualifying threshold payment and removes it from the next modeled payment; the midpoint limit ends charges before the following midpoint month. Actual premium billing and cancellation dates can differ.
Extra principal payments
Applied once only if extra payments repay the loan before the contractual final month. This does not model penalties on every partial prepayment. Check your contract.
Extra payments are applied to principal after that month’s interest. The regular installment stays unchanged; the final payment is capped at the amount owed.
Housing and total debt ratios use required payments, not voluntary extra repayments or maintenance savings. They are estimates, not lender qualification or country-specific approval limits.
Home price supported by a monthly budget — offer A
Uses offer A’s rate, term, down-payment setting, financed fees and initial housing costs, including maintenance reserve. It excludes voluntary extra principal and other debts. Required upfront cash is shown separately. This is not a loan approval or affordability assessment.
Your mortgage and housing results
Offer B minus offer A
A negative difference means offer B is lower. Compare the property price and down payment too. Financing-cost savings exclude taxes, insurance, common charges and maintenance: these do not disappear when a mortgage ends.
Compare 15, 20, 25 and 30 years
These scenarios keep offer A’s other assumptions but exclude extra payments and early-payoff fees. The PMI custom end month is capped at the scenario term. They are mathematical scenarios, not lender offers.
Explore your mortgage
Optional mortgage insurance (PMI)
US estimates assume a qualifying conventional loan, current payments and all required conditions. An 80% request is not automatic approval; the scenario assumes cancellation is approved. The 78% automatic estimate uses the original scheduled balance, not accelerated payments, with a midpoint limit. FHA, VA and lender-paid insurance have different rules. Verify your lender’s disclosures.
For budgeting, the model charges PMI through the qualifying threshold payment and removes it from the next modeled payment; the midpoint limit ends charges before the following midpoint month. Actual premium billing and cancellation dates can differ.
Remaining balance over time
The curves use the calculated monthly balances. They reach zero when each plan ends. Move over the graph or use the slider to explore a month.
Initial monthly housing budget
Principal and interest use the first scheduled installment. Maintenance is a savings reserve; voluntary extra principal is shown separately and is not included in this donut.
Principal and interest by calendar year
Equity and loan balance over time
Equity equals the entered purchase price minus the remaining loan balance. The home value is held constant; this is not an appraisal or a forecast of price growth.
Monthly and yearly mortgage schedule
| Payment | Date | Opening balance | Total installment | Interest | Principal repaid | Extra principal applied | PMI premium | Housing cash outflow | Ending balance |
|---|
Loan payments include principal, interest and applied extra principal. Housing outflow also includes taxes, insurance, PMI and common charges. Down payment, closing fees and a possible early-payoff fee are outside the table. Maintenance reserves are not spending.
Home price supported by a monthly budget — offer A
Always-visible calculations
P = opening balance including financed fees; r = annual interest rate ÷ 100 ÷ 12; n = number of monthly payments.
At 0% interest, divide the opening balance by the number of payments.
Money values are rounded for display; the engine uses full precision and equal monthly periods. Actual lenders can use daily interest and per-payment rounding. The first payment date labels the schedule and does not create an irregular first interest period.
A payment shifts from interest toward principal
Interest rate is not the same as APR
A fee-inclusive APR measures the cost of credit and may differ from the contractual interest rate used for installments. Enter the contractual rate and the fees separately. Do not count a financed fee again as an upfront fee.
Mortgage payments and ownership costs are different
Mortgage payoff ends principal and interest, not property taxes, insurance, common charges or maintenance. The cash-through-payoff total covers only the modeled repayment period. Do not interpret a shorter period of ownership costs in the table as permanent savings.
Compare more than the monthly payment
Compare the purchase price, down payment, closing fees, interest, PMI and payoff date. This planner supports fixed-rate monthly amortization, not variable-rate, interest-only, balloon or government-program-specific products.
Further reading: CFPB: APR · CFPB: PMI
Mortgage planning questions
Which interest rate should I enter?
Use the fixed contractual annual interest rate, not an APR that already includes fees. Closing fees are entered separately. The model does not calculate a statutory APR.
What does the monthly housing cost include?
It includes required principal and interest, property tax, home insurance, optional PMI and common charges. Maintenance savings and voluntary extra principal are shown separately.
Does PMI disappear automatically at 80%?
No. In the US conventional-loan scenario, 80% is a cancellation-request milestone subject to conditions and lender approval. The automatic 78% milestone follows the original amortization schedule, with a midpoint limit. These assumptions are not rules for every country or loan.
Can I enter a 100% down payment?
Yes. With no financed closing fees, the mortgage balance and loan interest are zero. Ownership costs can still exist. A monthly budget alone cannot limit the purchase price when there is no mortgage or price-based tax.
How do extra payments affect the estimate?
Extra principal reduces the balance after monthly interest. Payments are capped at the debt owed. The model shows interest savings, PMI savings and the entered one-time early-payoff fee separately; ongoing ownership costs are not treated as mortgage savings.
Is the maximum home price a mortgage approval?
No. It is a mathematical estimate using your entered monthly budget and assumptions. It does not assess credit history, lender policies, local law, variable future expenses or available upfront cash.
Calculations run in your browser. This tool does not send the loan values you enter to our server.
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