Home Loan Calculator
Calculate monthly payments, total costs, and debt-to-income ratio for your home mortgage
Calculate Home Loan Payment
Total amount you need to borrow
Length of time to repay the loan
Annual percentage rate (APR)
Used to calculate debt-to-income ratio
Payment Summary
Debt-to-Income Analysis
First Year Payment Breakdown
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,520 | $395 | $1,125 | $299,605 |
| 2 | $1,520 | $397 | $1,124 | $299,208 |
| 3 | $1,520 | $398 | $1,122 | $298,810 |
| 4 | $1,520 | $400 | $1,121 | $298,411 |
| 5 | $1,520 | $401 | $1,119 | $298,010 |
| 6 | $1,520 | $403 | $1,118 | $297,607 |
| 7 | $1,520 | $404 | $1,116 | $297,203 |
| 8 | $1,520 | $406 | $1,115 | $296,798 |
| 9 | $1,520 | $407 | $1,113 | $296,391 |
| 10 | $1,520 | $409 | $1,111 | $295,982 |
| 11 | $1,520 | $410 | $1,110 | $295,572 |
| 12 | $1,520 | $412 | $1,108 | $295,160 |
Example Calculation
Home Purchase Example
Home Price: $400,000
Down Payment (20%): $80,000
Loan Amount: $320,000
Interest Rate: 4.5% APR
Loan Term: 30 years
Monthly Income: $8,000
Calculation Results
Monthly Payment: $1,621
DTI Ratio: 20.3% (Excellent)
Total Interest: $263,609
Total Payment: $583,609
Common Loan Types
Conventional
3-20% down payment
Not government-insured
FHA
3.5% down payment
Government-insured
VA
0% down payment
Veterans only
DTI Guidelines
Home Loan Tips
Save for at least 10-20% down payment
Maintain DTI ratio below 28%
Shop around for best interest rates
Consider extra payments to save interest
Understanding Home Loans
How Home Loan Payments Work
Home loan payments consist of principal (loan amount) and interest. Early payments go mostly toward interest, while later payments reduce more principal. This is called amortization.
Payment Formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]
- M: Monthly payment
- P: Principal loan amount
- r: Monthly interest rate
- n: Total number of payments
Key Factors Affecting Your Loan
- •Credit Score: Higher scores get better rates
- •Down Payment: More down = lower monthly payments
- •Loan Term: Longer terms = lower payments, more interest
- •Interest Rate: Even 0.25% difference matters significantly
Important: This calculator provides estimates. Actual loan terms may vary based on credit, income, and lender requirements.