Mortgage Freedom Calculator
function calculateMortgageFreedom() {
var currentPrincipalBalance = parseFloat(document.getElementById('currentPrincipalBalance').value);
var annualDebtRate = parseFloat(document.getElementById('annualDebtRate').value);
var standardMonthlyContribution = parseFloat(document.getElementById('standardMonthlyContribution').value);
var additionalMonthlyContribution = parseFloat(document.getElementById('additionalMonthlyContribution').value);
var resultDiv = document.getElementById('result');
resultDiv.innerHTML = "; // Clear previous results
if (isNaN(currentPrincipalBalance) || isNaN(annualDebtRate) || isNaN(standardMonthlyContribution) || isNaN(additionalMonthlyContribution) ||
currentPrincipalBalance <= 0 || annualDebtRate < 0 || standardMonthlyContribution 0 && months < maxIterations) {
months++;
var debtCostForMonth = currentPrincipal * monthlyRate;
var principalPaid = monthlyPayment – debtCostForMonth;
if (principalPaid 0) {
// Payment is not enough to cover monthly debt cost, or barely covers it
return { months: Infinity, totalDebtCost: Infinity };
}
currentPrincipal -= principalPaid;
totalDebtCost += debtCostForMonth;
}
if (currentPrincipal > 0) { // If loop finished but principal still remains (maxIterations reached)
return { months: Infinity, totalDebtCost: Infinity };
}
return { months: months, totalDebtCost: totalDebtCost };
}
// Scenario 1: Standard Payments
var standardResult = calculateMonthsAndCost(currentPrincipalBalance, monthlyDebtRate, standardMonthlyContribution);
var monthsStandard = standardResult.months;
var totalDebtCostStandard = standardResult.totalDebtCost;
// Scenario 2: Accelerated Payments
var totalMonthlyContribution = standardMonthlyContribution + additionalMonthlyContribution;
var acceleratedResult = calculateMonthsAndCost(currentPrincipalBalance, monthlyDebtRate, totalMonthlyContribution);
var monthsAccelerated = acceleratedResult.months;
var totalDebtCostAccelerated = acceleratedResult.totalDebtCost;
var yearsStandard = monthsStandard === Infinity ? Infinity : (monthsStandard / 12);
var yearsAccelerated = monthsAccelerated === Infinity ? Infinity : (monthsAccelerated / 12);
var yearsOfFreedomGained = Infinity;
var totalCostReduction = Infinity;
if (yearsStandard !== Infinity && yearsAccelerated !== Infinity) {
yearsOfFreedomGained = yearsStandard – yearsAccelerated;
totalCostReduction = totalDebtCostStandard – totalDebtCostAccelerated;
} else if (yearsStandard === Infinity && yearsAccelerated !== Infinity) {
yearsOfFreedomGained = "You can achieve freedom, which was not possible with standard payments.";
totalCostReduction = "Significant savings as standard payments would never pay off the debt.";
} else if (yearsStandard !== Infinity && yearsAccelerated === Infinity) {
yearsOfFreedomGained = "Your accelerated payments are not enough to achieve freedom.";
totalCostReduction = "No savings, as accelerated payments are insufficient.";
} else { // Both are Infinity
yearsOfFreedomGained = "Neither payment plan is sufficient to achieve freedom.";
totalCostReduction = "No savings, as neither plan is sufficient.";
}
var output = '
Your Mortgage Freedom Plan:
';
if (yearsStandard === Infinity) {
output += '
Original Time to Debt Freedom: Your standard monthly contribution is not enough to pay off the principal balance.';
} else {
output += '
Original Time to Debt Freedom (Years): ' + yearsStandard.toFixed(2) + ' years';
}
if (yearsAccelerated === Infinity) {
output += '
New Time to Debt Freedom (Years): Your total monthly contribution is not enough to pay off the principal balance.';
} else {
output += '
New Time to Debt Freedom (Years): ' + yearsAccelerated.toFixed(2) + ' years';
}
if (typeof yearsOfFreedomGained === 'number') {
output += '
Years of Freedom Gained: ' + yearsOfFreedomGained.toFixed(2) + ' years';
} else {
output += '
Years of Freedom Gained: ' + yearsOfFreedomGained + ";
}
if (typeof totalCostReduction === 'number') {
output += '
Total Cost Reduction ($): $' + totalCostReduction.toFixed(2) + ";
} else {
output += '
Total Cost Reduction ($): ' + totalCostReduction + ";
}
resultDiv.innerHTML = output;
}
Understanding Your Path to Mortgage Freedom
Achieving 'mortgage freedom' means reaching a point where your home is entirely yours, free from outstanding debt. While the idea of paying off your home can seem daunting, even small additional contributions can significantly shorten the time it takes and reduce the overall cost. This calculator helps you visualize how accelerating your payments can bring you closer to financial independence.
How it Works:
Simply enter your current outstanding home balance, the annual percentage cost associated with that balance, your regular monthly payment, and any extra amount you're considering contributing each month. The calculator will then show you how much sooner you could achieve debt freedom and the total amount you could save over the life of your commitment.
Key Benefits of Accelerated Payments:
- Faster Debt Freedom: Reduce the number of years you spend making payments, allowing you to own your home outright much sooner.
- Significant Cost Reduction: Pay less overall by reducing the period over which debt costs accumulate. This means more money stays in your pocket.
- Increased Financial Flexibility: Once your home is paid off, you'll have more disposable income for other goals, such as retirement savings, investments, or other life experiences.
Use this tool to explore different scenarios and plan your strategy for achieving mortgage freedom sooner. Even a small additional contribution can make a big difference in your financial future!