Ramsey Mortgage Calculator
Loan Amount
Monthly Payment
Total Interest
Payoff Time
Amortization Schedule (First 12 Months)
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1216.04 | $416.04 | $900.00 | $239,583.955 |
| 2 | $1216.04 | $417.60 | $898.44 | $239,166.35 |
| 3 | $1216.04 | $419.17 | $896.87 | $238,747.179 |
| 4 | $1216.04 | $420.74 | $895.30 | $238,326.437 |
| 5 | $1216.04 | $422.32 | $893.72 | $237,904.116 |
| 6 | $1216.04 | $423.90 | $892.14 | $237,480.212 |
| 7 | $1216.04 | $425.49 | $890.55 | $237,054.718 |
| 8 | $1216.04 | $427.09 | $888.96 | $236,627.628 |
| 9 | $1216.04 | $428.69 | $887.35 | $236,198.937 |
| 10 | $1216.04 | $430.30 | $885.75 | $235,768.638 |
| 11 | $1216.04 | $431.91 | $884.13 | $235,336.726 |
| 12 | $1216.04 | $433.53 | $882.51 | $234,903.194 |
Empower your home buying journey with Ramsey-style mortgage calculations. Compare 15 vs 30-year loans, visualize amortization, and discover how extra payments save thousands in interest with precise financial modeling.
What Is It? - Ramsey Mortgage Calculator
This calculator embodies Dave Ramsey’s financial principles by:
- Providing clear comparisons between conventional and accelerated payoff strategies
- Visualizing the true cost of mortgages through interactive charts
- Demonstrating the power of extra payments with month-by-month amortization
- Aligning with Ramsey’s “debt-free” philosophy through actionable insights
Key Formulas
Monthly Payment = P [r(1+r)^n] / [(1+r)^n-1]
Where:
P = Principal loan amount ($)
r = Monthly interest rate (Annual rate ÷ 12)
n = Total number of payments (Loan term in years × 12)
Interest Savings = (Standard Term Payments - Accelerated Term Payments) × Monthly PaymentHow to Use
Input Parameters
- Enter home price and down payment (Ramsey recommends ≥20%)
- Set interest rate (current market rates shown as reference)
- Select 15 or 30-year term (Ramsey advocates 15-year mortgages)
Optimization
- Add extra monthly payments (even $100/month creates significant savings)
- Observe real-time updates to payoff timeline and interest savings
Visual Analysis
- Study the amortization chart showing interest/principal allocation
- Review the doughnut chart comparing total loan costs
Implementation
- Use calculated payment amounts for budget planning
- Print amortization schedule for financial records
- Adjust variables to test different financial scenarios
FAQs
Q: Why does Dave Ramsey recommend 15-year mortgages?
A: Shorter terms build equity faster and typically save 50-60% in total interest versus 30-year loans, aligning with his debt-avoidance philosophy.
Q: How accurate are the extra payment calculations?
A: This tool models exact payment application sequences, accounting for principal reduction and compounding interest effects.
Q: Should I include taxes/insurance in calculations?
A: Ramsey advises separating these escrow items. This calculator focuses solely on principal/interest to demonstrate core debt repayment dynamics.
Terminology
Amortization
The process of gradually paying off mortgage debt through scheduled principal/interest payments
Equity Acceleration
The strategy of building home equity faster than required through extra payments or shorter terms
Debt-to-Income Ratio
A key mortgage qualification metric (Ramsey recommends ≤25% of take-home pay)
PMI (Private Mortgage Insurance)
Avoidable fee when down payment <20% (eliminated at 20% equity)
Pro Tips
- Every 300k loan saves ~$1,100 in interest
- Biweekly payments (half-monthly ×26/year) effectively create 13 monthly payments annually
- Refinancing breaks even when interest savings exceed closing costs within 24 months
- Ramsey’s “7 Baby Steps” prioritize mortgage payoff after establishing emergency fund