A mortgage calculator helps you estimate monthly payments, total interest, and the overall cost of a home loan before you commit. By adjusting the home price, down payment, loan term, and interest rate, you can compare scenarios and find a payment plan that fits your budget.
The calculator uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the loan principal, r is the monthly interest rate, and n is the number of payments. A visual bar shows the proportion of your total cost that goes toward principal versus interest, giving you an intuitive sense of the loan's true cost over time.