Advanced Financial & Mortgage Planner

For Homeowners in the US, UK, Canada & Australia

Strategic Features of Our Planner

Everything You Need for a Smarter Mortgage

Analyze True Cost (NPV)

Understand the real cost of interest in today's dollars to make smarter investment decisions.

Forecast Equity Growth

Visually track how your home equity grows over time through payments and property appreciation.

Monitor Financial Health

Instantly see your Debt-to-Income (DTI) ratio to understand your financial standing from a lender's perspective.

Model Future Scenarios

Compare the impact of extra payments, lump sums, and refinancing to find your optimal payoff strategy.

Beyond the Numbers

Mastering Your Mortgage: The 3 Pillars of Strategic Planning

This planner is built on three core financial concepts. Understanding them is the key to making smarter decisions.

Pillar 1: Debt-to-Income (DTI)

(Total Monthly Debts / Gross Monthly Income) * 100 = DTI %

What it is: The percentage of your gross monthly income that goes to all your monthly debt payments (mortgage, car, student loans, etc.).

Why it matters: This is your financial "stress test." Lenders use it to see if you can truly afford the loan. A high DTI makes you a risky borrower and limits your options.

Actionable Insight: To increase your borrowing power, focus on lowering your DTI. Paying off a small car loan or credit card can often increase your affordability more than getting a small raise.

Pillar 2: Equity & Loan-to-Value (LTV)

(Loan Amount / Home Value) * 100 = LTV %

What it is: Equity is the portion of your home you own. LTV is the opposite, the portion your lender owns (Loan ÷ Value). An 80% LTV means you have 20% equity.

Why it matters: Equity is your home's wealth. Reaching 20% equity (80% LTV) is the magic number that lets you remove PMI, saving you money every month.

Actionable Insight: Use the "Extra Payment" inputs to see how fast you can reach 20% equity. A small extra payment can knock off PMI years sooner, providing an immediate return on your money.

Pillar 3: Net Present Value (NPV)

Today's $100 is worth more than Tomorrow's $100.

NPV tells you the "true cost" of future interest in today's money.

What it is: A dollar today is worth more than a dollar in 30 years (due to inflation and investment potential). NPV calculates the "true cost" of your future interest payments in today's dollars.

Why it matters: It helps you make "apples-to-apples" comparisons. Is saving $100,000 in interest 25 years from now really better than investing that money today? NPV helps you answer that.

Actionable Insight: Compare the "Total Interest" to the "NPV of Interest." If the NPV is much lower, it suggests your money might work harder for you by being invested elsewhere (as shown in the "Rent vs. Buy" tab).

A Deeper Dive

Answering Your Core Mortgage Questions

Use this planner as a tool to answer the most critical questions about your home finances.

How much house can I afford?

Lenders look at your Debt-to-Income (DTI) ratio. Our "Affordability" tab calculates the maximum loan you can get based on your desired DTI (e.g., 36%), income, and debts. This is a more realistic number than a generic "pre-qualification."

Try the Affordability Calculator →

Is it better to rent or buy?

This is an "opportunity cost" question. Renting feels like "throwing money away," but the cash you save (on a down payment, maintenance, and taxes) can be invested. The "Rent vs. Buy" tab compares the net worth of both paths over time to see which one comes out ahead.

Compare Renting vs. Buying →

When should I refinance?

Refinancing makes sense if your savings outweigh the costs. Our "Refinance" tab calculates your break-even point (how many months it takes for your monthly savings to cover the closing costs) and your total lifetime savings. If you plan to stay in your home past the break-even point, it's often a good move.

Analyze Your Refinance Options →

Is this rental a good investment?

Investors look at two key metrics. Cap Rate (your annual return if you paid all cash) and Cash-on-Cash ROI (your annual return on the strong level). The "Investment" tab calculates both, giving you a clear verdict on the property's performance.

Calculate Rental ROI →

How This Planner Works: The Formulas

This planner is a suite of powerful tools. Here’s a transparent breakdown of the core financial formulas used in each tab.

1 Mortgage Calculator Tab (Payoff, Equity & NPV)

  • Monthly Payment (PMT)

    The base P&I payment is calculated with the standard PMT formula: M = P * [r(1+r)^n] / [(1+r)^n - 1]

    • M = Monthly Payment
    • P = Loan Principal
    • r = Monthly Interest Rate (Annual Rate / 12 / 100)
    • n = Total Payments (Term in Years * 12)
  • Amortization Loop (Per Period)

    The calculator iterates for each payment period (e.g., month) to determine the new balance.

    Interest = Current Balance * Periodic Rate Principal = Payment - Interest + Extra Payments New Balance = Current Balance - Principal
  • Net Present Value (NPV) of Interest

    This shows the "true cost" of future interest payments in today's dollars.

    PV of Interest = Interest / (1 + d)^p
    • d = Periodic Discount Rate (Annual Rate / Periods Per Year)
    • p = The specific period number (1, 2, 3...)
  • DTI Ratios Front-End DTI = (Total PITI) / Gross Monthly Income Back-End DTI = (Total PITI + Other Debts) / Gross Monthly Income

2 Affordability Tab

This tab works by reversing the payment formula to solve for the Loan Principal (P).

  • Max Affordable Payment Max P&I = (Gross Monthly Income * DTI %) - Other Debts - (Taxes + Insurance)
  • Max Loan Amount (Present Value) P = M * [(1+r)^n - 1] / [r(1+r)^n]

3 Rent vs. Buy Tab

This tab compares the net worth of two scenarios over time.

  • Buying Net Worth Equity = (Property Value * Appreciation) - Loan Balance Final Net Worth = Equity - (Property Value * Selling Costs %)
  • Renting Net Worth (Compounded) Monthly Savings = (PITI + Maint) - Monthly Rent Investment Value = (Previous Value + Down Payment + Monthly Savings) * (1 + Monthly Investment Rate)

4 Refinance Tab

This tab simulates your *original* loan to find your current balance and then compares the total future interest of both paths.

  • Break-Even Point Monthly Savings = Current Payment - New Payment Break-Even (Months) = New Closing Costs / Monthly Savings
  • Lifetime Savings Savings = Total Remaining Interest (Old Loan) - (Total Interest (New Loan) + Closing Costs)

5 Investment / Rental Tab

This tab uses standard real estate investment formulas to analyze a property's performance.

  • Net Operating Income (NOI) NOI = (Gross Rent * (1 - Vacancy %)) - (Taxes + Insurance + Maint. + Mgmt.)
  • Cap Rate Cap Rate % = (NOI / Purchase Price) * 100
  • Cash-on-Cash (CoC) ROI Annual Cash Flow = NOI - (Monthly Mortgage Payment * 12) Total Cash Invested = Down Payment + Closing Costs CoC ROI % = (Annual Cash Flow / Total Cash Invested) * 100