How This Mortgage Calculator Works
Our mortgage calculator estimates your monthly payment, total housing costs, and amortization schedule. It models property appreciation, tax, insurance, HOA, maintenance, PMI, rate buydowns, and other real costs of homeownership.
Methodology
We use real amortization schedules to track how your mortgage balance declines. Early payments are mostly interest; over time, more goes toward principal. Accumulated equity offsets your total cost of ownership.
- True Cost of Housing = Sum of all cash outflows − Equity accumulated (at exit)
- Equity at Exit = Down payment + Principal paid + Home appreciation
Mortgage Payment Formula
Monthly principal and interest use the standard amortization formula:
PMT = P × [r(1+r)n] / [(1+r)n − 1]
Where P = loan principal, r = monthly interest rate (annual ÷ 12), n = total number of payments.
What's Included
The calculator includes mortgage P&I, property tax, home insurance, HOA, PMI, maintenance, closing costs, permanent and temporary rate buydowns, and optional mortgage interest tax deduction.
