Call us: (949) 777-5444

Principal Calculator

Principal Calculator

If you’ve ventured into the realm of mortgages, you’ve likely encountered the term “principal.” The principal amount is a fundamental concept in mortgage financing, representing the original money you borrowed to purchase your home. The principal, along with interest, determines your monthly mortgage payments.

Contact Us To Know More
WhatsApp Image 2022-09-23 at 1.49.24 PM

Understanding the Principal

The principal is the initial amount of your mortgage loan before considering interest and other financial elements. When you make monthly mortgage payments, a portion goes towards reducing the principal balance owed on your loan, and the rest goes towards paying off the interest.

The principal is a crucial factor as it directly affects the total interest paid over the life of the loan. Reducing the principal, even a small amount, can lead to substantial savings on interest payments in the long run. This is where the Principal Calculator comes into play.

How to Use the Principal Calculator?

The Principal Calculator is a tool designed to empower you in understanding and managing your mortgage. Here’s a simple guide on how to use it effectively

  1. Enter Your Loan Amount

Begin by inputting the initial loan amount or the total value of your mortgage. This is the principal amount.

  1. Determine the Interest Rate

Input the interest rate associated with your mortgage. The interest rate influences your monthly payments and the overall cost of your loan.

  1. Select the Loan Term

Choose the duration of your mortgage loan, typically in years. Typical terms are 15, 20, or 30 years.

  1. Hit Calculate

After entering the required data, hit the calculate button. The calculator will generate essential details such as your monthly mortgage payment, the total interest paid over the loan term, and the remaining loan balance.

Understanding these numbers is crucial for managing your finances and planning for the future. It allows you to make informed decisions regarding your mortgage, be it paying extra towards the principal to reduce the loan term or adjusting the interest rate to see how it impacts your monthly payments.

Lifetime Home Finance

We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.


(949) 777-5444



Laguna Niguel, CA 92677

The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. Mortgage loans may be arranged through third party providers.
Designed By Amplispot.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram Skip to content