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Monthly Payment-
Total Interest-
Total Cost-

Amortization Schedule

MonthPaymentPrincipalInterestBalance
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About

This Mortgage Calculator serves as a vital financial planning tool for prospective homeowners. It goes beyond simple monthly payment estimation by providing a detailed breakdown of how each payment is split between principal and interest over the life of the loan. Understanding this ratio is crucial for long-term financial health and wealth building.

The tool includes an interactive amortization schedule and a visual pie chart to illustrate the total cost of borrowing. Users can also export their calculation scenarios to PDF for offline review or consultation with financial advisors. A built-in database of regional market rates helps benchmarks your offers against current averages.

mortgage interest calculator real estate

Formulas

The calculation is based on the standard amortization formula:

M = P ×
r(1+r)n(1+r)n - 1

Where: M is the monthly payment, P is the principal, r is the monthly interest rate (annual rate / 12), and n is the total number of payments.

Reference Data

YearInterest PaidPrincipal PaidEnding Balance
1$14,250$5,100$294,900
5$13,100$6,250$268,500
10$11,500$7,850$225,100
20$6,800$12,550$98,400

Frequently Asked Questions

The Total Interest represents the cost of borrowing the money over the entire term of the loan. It does not include property taxes, insurance, or HOA fees unless specifically added to the 'Monthly Payment' manually.
Even a small difference in interest rate (e.g., 0.5%) can result in tens of thousands of dollars in difference over a 30-year term. Use the built-in Market Rates lookup to see if you are getting a competitive deal.