Affordability Calculator

Affordability Calculator

Wondering how much house you can afford to buy? Use this calculator to find out.

 
HOW TO USE THIS TOOL

Three steps to find your home budget

Enter your finances

Add your household income, monthly debt payments, and available down payment to establish your budget.

Adjust housing costs

Enter your estimated interest rate, loan term, property taxes, and insurance to refine your affordability estimate.

Discover your range

Review the estimated home price and monthly payment that may fit your finances, then adjust your inputs to compare options.

See How Your Loan Payments Change Over Time

Use the Amortization Calculator to see how your loan balance changes throughout the life of a loan. Estimate monthly payments, total interest, principal paid, and the remaining balance over time.

An amortization schedule can help you understand how much of each payment goes toward principal and how much goes toward interest.

What Is Loan Amortization?

Loan amortization is the process of paying off a loan through a series of scheduled payments. Each payment typically includes both principal and interest.

At the beginning of many fully amortizing loans, a larger portion of each payment goes toward interest. As the loan balance decreases, more of each payment generally goes toward principal.

An amortization schedule shows this process month by month.

What Does an Amortization Schedule Show?

Depending on the loan information entered, an amortization schedule can help you see:

  • Monthly payment amounts
  • Principal paid
  • Interest paid
  • Remaining loan balance
  • Total interest over the loan term
  • How quickly the loan balance decreases

Why Use an Amortization Calculator?

An amortization calculator can help you compare loan scenarios and understand the long-term cost of borrowing.

Try changing the loan amount, interest rate, or loan term to see how each factor affects your payments and total interest.

You can also compare different payment strategies to understand how additional payments may affect the loan balance and interest paid.

Amortization Calculator vs. Mortgage Calculator

A mortgage calculator is typically used to estimate a monthly home payment. An amortization calculator focuses on how the loan is paid down over time.

Use the Mortgage Calculator  to estimate your monthly mortgage payment, or use this calculator to examine the loan’s payment schedule.

Frequently asked questions

What is an amortization schedule?

An amortization schedule is a breakdown of scheduled loan payments showing how much is applied to principal, interest, and the remaining loan balance over time.

Yes. An amortization calculation can show the estimated total interest paid over the life of the loan based on the loan amount, interest rate, and term entered.

Additional principal payments can reduce the outstanding loan balance, which may reduce the amount of interest charged over time. The actual impact depends on the loan terms and how additional payments are applied.

Principal is the amount borrowed that remains to be repaid. Interest is the cost charged by the lender for borrowing the money.

Yes. Amortization calculations can be used for many installment loans, although loan terms and payment structures can vary.

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