Home Loan Calculator

Complete mortgage analysis: monthly payments, affordability ratios, after-tax savings, break-even analysis, and amortization schedule.

1Your Income

$
$

Leave blank if none

$

Rental, freelance, dividends

$

Auto + student + credit cards

$

For comparison later

%

Federal + state combined

2Home Price & Down Payment

$

= 20.0% of home price

Total Down
$150,000
20.0%
Amount to Finance
$600,000

3Loan Details

$600,000

Auto-calculated from price - down

%

4Monthly Home Costs

%

= $625/mo

$
$

$0 if no HOA

$

Budget 1-2% of home value/year

5Results — Loan Summary

Down Payment
$150,000
20.0%
1st Mortgage
$600,000
$3,792.41/mo
2nd Mortgage
$0
None
Total Monthly Payment
$4,817.41
P&I + Tax + Ins + PMI + HOA
Front-End Ratio (Housing / Income)
48.2%
Target: under 28% for most lenders
Back-End Ratio (Housing + Debts / Income)
53.2%
Target: under 36% for most lenders

6After-Tax Monthly Analysis

ComponentPre-TaxAfter-Tax
Interest (1st Mortgage)$3,250.00$2,275.00
Principal (1st Mortgage)$542.41$542.41
Property Taxes$625.00$437.50
Home Insurance$200.00$200.00
Maintenance / Repairs$200.00$200.00
Total Payment$4,817.41$3,654.91
💰 Monthly Tax Savings-$1,162.50
🔴
MORE expensive than renting
After-tax mortgage vs your current rent
$1,154.91
per month extra
Your mortgage (after tax)
$3,654.91/mo
Your current rent
$2,500.00/mo
🏠

But here's what most people miss:

$542.41/mo of your payment goes straight to principal— that's YOUR money building as home equity.

That's $6,509/year in forced savings you keep when you sell.

📊 Real cost comparison: Extra cost over rent is $13,859/yr, but you build $6,509/yr in equity. Net difference: only $7,350/yr true "cost" of owning.

💡 Plus: rent increases ~3-5% yearly. Your fixed mortgage stays the same. In 5 years, your rent could be $3,042/mo while your payment hasn't changed.

7Break-Even Analysis

%

Agent fees, title, etc.

Principal Paid in 5 yrs
$38,334
Break-Even Sale Price
$757,091
to recover down payment after closing costs
Required Appreciation
0.19%/yr
US avg is ~3-4%/yr

Your home needs to appreciate 0.19% per year to break even if you sell in 5 years (recovering your $150,000 down payment after 6% sale closing costs).

8Amortization Schedule

MonthPaymentPrincipalInterestBalanceCum. InterestRent (2% inc/yr)
1$3,792.41$542.41$3,250.00$599,458$3,250$2,500.00
2$3,792.41$545.35$3,247.06$598,912$6,497$2,500.00
3$3,792.41$548.30$3,244.11$598,364$9,741$2,500.00
4$3,792.41$551.27$3,241.14$597,813$12,982$2,500.00
5$3,792.41$554.26$3,238.15$597,258$16,220$2,500.00
6$3,792.41$557.26$3,235.15$596,701$19,456$2,500.00
7$3,792.41$560.28$3,232.13$596,141$22,688$2,500.00
8$3,792.41$563.31$3,229.10$595,578$25,917$2,500.00
9$3,792.41$566.36$3,226.05$595,011$29,143$2,500.00
10$3,792.41$569.43$3,222.98$594,442$32,366$2,500.00
11$3,792.41$572.52$3,219.89$593,869$35,586$2,500.00
12$3,792.41$575.62$3,216.79$593,294$38,803$2,500.00

9Glossary

Principal & Interest (P&I)
The portion of your monthly payment that goes toward paying down the loan balance (principal) and the cost of borrowing (interest).
PMI (Private Mortgage Insurance)
Required when your down payment is less than 20%. Protects the lender if you default. Typically 0.3%-1.5% of the loan amount per year.
Front-End Ratio (Housing Ratio)
Your total monthly housing cost divided by gross monthly income. Most lenders want this below 28%.
Back-End Ratio (DTI)
Total monthly housing cost plus all other debts, divided by gross monthly income. Most lenders want this below 36% (some allow up to 43%).
ARM (Adjustable Rate Mortgage)
A mortgage where the interest rate is fixed for an initial period (e.g., 5 years) then adjusts annually based on market rates.
Amortization
The process of paying off a loan over time. Early payments are mostly interest; later payments are mostly principal.
Down Payment
The upfront cash you pay toward the home purchase. A larger down payment means a smaller loan and no PMI requirement (at 20%+).
Closing Costs
Fees paid when buying or selling a home, including agent commissions, title insurance, transfer taxes, and lender fees. Typically 2-6% of the sale price.
HOA (Homeowners Association)
Monthly or annual fees for shared community amenities and maintenance, common in condos and planned communities.
Tax Deduction
Mortgage interest and property taxes are tax-deductible (if you itemize), reducing your effective housing cost by your marginal tax rate.
Break-Even Price
The minimum sale price needed to recover your down payment after paying off the remaining loan balance and closing costs.
Required Appreciation
The annual rate your home must increase in value for you to break even when selling. US historical average is approximately 3-4% per year.

Free Resources for Home Buyers

📊 Current Rates & Market Data

📚 Education & Guides

🏠 Down Payment & Assistance

💡 Pro tip:Get pre-approved before house hunting. It shows sellers you're serious and helps you know your exact budget. Most pre-approvals are free and take 15-30 minutes online.

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Results are for informational purposes only. Verify important calculations independently.