How this calculator works
Loan amount = home price − down payment. Monthly Principal & Interest uses the standard amortization formula. Property tax, insurance, PMI, and HOA are added as monthly escrow-style estimates. The amortization schedule shows exactly how much of each year's payments go to principal vs interest — early years are interest-heavy, later years shift toward principal.
What is PMI and when does it apply?
Private Mortgage Insurance (PMI) is typically required when your down payment is below 20% of the home price. It usually falls off once you reach 20-22% equity. If your down payment is 20%+, set PMI to 0.
Reading the amortization table
Notice how the "Interest Paid" column shrinks and "Principal Paid" grows each year — this is normal for reducing-balance loans. Extra payments accelerate this shift, which is why even small extra payments early in the loan save disproportionately more interest.
Frequently asked questions
Should I include property tax and insurance for a car or personal loan? No — leave those at 0; they only apply to property-secured loans like mortgages.
Why does my payoff date matter? It shows exactly when you'll be debt-free at your current payment level, and how much sooner extra payments get you there.