Last updated: May 17, 2026
Definition: The yearly cost of borrowing money, expressed as a percentage, including the nominal interest rate plus most lender fees. APR makes loans easier to compare apples-to-apples because it bundles fees into the headline rate.
Used in: Loan Payment Calculator, Mortgage Calculator, Car Loan Calculator
Example: A $10,000 personal loan at 6% APR over 5 years costs roughly $1,600 in total interest and fees.
Definition: The real rate of return earned on a deposit or investment in one year, taking compounding into account. Unlike APR, APY is what a saver actually earns once interest is reinvested.
Used in: Compound Interest Calculator, Savings Goal Calculator
Example: A 5% nominal rate compounded monthly produces an APY of roughly 5.12%.
Definition: The process of paying off a debt in regular, equal installments where each payment covers both interest and a portion of the principal. Early payments are mostly interest; later payments are mostly principal.
Used in: Mortgage Calculator, Loan Payment Calculator, Student Loan Calculator
Example: On a 30-year $300,000 mortgage at 6%, the first payment is ~$300 principal and ~$1,500 interest; that ratio flips over time.
Definition: The heart-rate zone (typically 70-80% of your maximum heart rate) where your body uses oxygen efficiently for sustained cardiovascular exercise. Training in this zone builds endurance and burns fat effectively.
Used in: Heart Rate Calculator, Running Pace Calculator
Example: For a 30-year-old, aerobic zone is roughly 133-152 bpm (using 220 minus age).
Definition: How an investment portfolio is divided among asset classes such as stocks, bonds and cash to balance risk and return.
Used in: Investment Return Calculator, Retirement Calculator
Example: A common rule of thumb is to hold (110 minus your age)% in stocks; a 30-year-old might hold ~80% stocks, 20% bonds.
Definition: A weight-to-height ratio (kg/m²) used to broadly classify adults as underweight, normal, overweight, or obese. BMI is a quick screening tool but does not directly measure body fat.
Used in: BMI Calculator, Ideal Weight Calculator
Example: A 70 kg adult who is 1.75 m tall has a BMI of 22.9 — within the "normal" range of 18.5-24.9.
Definition: The number of calories your body burns at complete rest to keep basic functions like breathing, circulation, and cell production running. BMR is the foundation of any calorie-target calculation.
Used in: TDEE Calculator, Calorie Calculator, Macro Calculator
Example: A typical 30-year-old, 70 kg male has a BMR of about 1,650 kcal/day.
Definition: One hundredth of one percent (0.01%). Basis points are used to describe small changes in interest rates, bond yields, and fees without rounding confusion.
Used in: Mortgage Calculator, Loan Payment Calculator
Example: A rate rising from 6.00% to 6.25% is a 25-basis-point increase.
Definition: The sales volume at which total revenue exactly equals total fixed and variable costs — the point where a business is neither making nor losing money. Knowing it tells you the minimum you must sell to stay alive.
Used in: Break-Even Calculator, Profit Margin Calculator
Example: Fixed costs of $5,000, unit price $50, unit cost $30 → break-even = 5,000 / (50 - 30) = 250 units.
Definition: The share of your total body weight that consists of fat tissue, including essential fat. It is a more direct measure of body composition than BMI and varies widely by age and sex.
Used in: Body Fat Calculator, BMI Calculator
Example: Healthy ranges are roughly 14-24% for adult men and 21-31% for adult women.
Definition: Interest calculated on the initial principal plus all previously accumulated interest. Because each period's interest earns its own interest, balances grow exponentially rather than linearly.
Used in: Compound Interest Calculator, Investment Return Calculator, Retirement Calculator
Example: $10,000 at 7% compounded annually grows to $19,672 after 10 years — nearly double.
Definition: The smoothed annualized rate of return that would take an investment from its starting value to its ending value over a period, assuming profits are reinvested each year. CAGR strips out volatility for cleaner comparisons.
Used in: Investment Return Calculator, Crypto ROI Calculator
Example: A portfolio growing from $10,000 to $16,000 over 5 years has a CAGR of about 9.86%.
Definition: The profit realized when a capital asset — stocks, real estate, crypto — is sold for more than its purchase price. Gains held longer than one year are usually taxed at lower long-term rates.
Used in: Capital Gains Tax Calculator, Crypto ROI Calculator
Example: Buying stock at $5,000 and selling at $8,000 produces a $3,000 capital gain.
Definition: The total greenhouse-gas emissions caused directly and indirectly by an individual, household, product, or activity, usually expressed in tonnes of CO₂ equivalent per year. Lower footprints reduce climate impact.
Used in: Carbon Footprint Calculator, Electricity Calculator
Example: The average American household produces about 16 tonnes of CO₂e per year.
Definition: The net amount of cash moving into and out of a business, investment, or household over a period. Positive cash flow means more money comes in than goes out; negative cash flow is the opposite.
Used in: Property Cash Flow Calculator, Budget Calculator
Example: A rental property earning $2,000/month with $1,400 in expenses generates $600/month of positive cash flow.
Definition: The fees and expenses paid when finalizing a real estate purchase or mortgage, separate from the down payment.
Used in: Mortgage Calculator, Mortgage Affordability Calculator
Example: Closing costs typically run 2-5% of the loan amount, so $6,000-$15,000 on a $300,000 home.
Definition: Total monthly debt payments divided by gross monthly income, expressed as a percentage. Lenders use DTI to assess how much additional borrowing you can responsibly take on.
Used in: Mortgage Affordability Calculator, Debt Payoff Calculator
Example: $2,000 in monthly debt on a $6,000 gross income gives a DTI of 33%, generally acceptable to most lenders.
Definition: The upfront cash a buyer pays toward a property purchase, with the remainder financed by a mortgage. Larger down payments lower the loan amount, reduce monthly payments, and often eliminate PMI.
Used in: Mortgage Calculator, Mortgage Affordability Calculator
Example: A 20% down payment on a $400,000 home is $80,000.
Definition: The decline in an asset's value over time due to wear, age, or obsolescence. In accounting, it spreads the cost of a long-lived asset across its useful life; in real life, it tells you how fast your car or equipment loses value.
Used in: Car Depreciation Calculator, Property Value Calculator
Example: A new $30,000 car typically loses about 20% of its value in the first year — depreciation of $6,000.
Definition: The interest rate used to translate future cash flows into today's dollars (present value). The higher the discount rate, the less future money is worth right now.
Used in: Investment Return Calculator, Compound Interest Calculator
Example: $1,000 received in 5 years, discounted at 8%, is worth about $681 today.
Definition: The value of an ownership interest in an asset after subtracting any debt secured by it. In a home, equity is market value minus mortgage balance; in a company, it's assets minus liabilities.
Used in: Mortgage Calculator, Net Worth Calculator, Property Value Calculator
Example: A $400,000 home with a $250,000 mortgage has $150,000 in equity.
Definition: An account or arrangement where a neutral third party holds funds or documents on behalf of two transacting parties until conditions are met. In mortgages, escrow accounts collect taxes and insurance with each monthly payment.
Used in: Mortgage Calculator, Mortgage Affordability Calculator
Example: A monthly mortgage of $1,800 might include $1,400 principal+interest and $400 escrowed for property taxes and insurance.
Definition: A fixed monthly payment a borrower makes to a lender that includes both principal and interest. EMIs are the same every month, but the principal/interest split changes over time.
Used in: Loan Payment Calculator, Car Loan Calculator, Student Loan Calculator
Example: A $20,000 loan at 8% over 4 years has an EMI of roughly $488.
Definition: The annual fee a mutual fund or ETF charges its shareholders, expressed as a percentage of assets under management. Low expense ratios mean more of your return stays in your pocket over time.
Used in: Investment Return Calculator, Retirement Calculator
Example: A fund with a 0.20% expense ratio costs $20 per year on a $10,000 balance.
Definition: The portion of a property you actually own - its market value minus the remaining mortgage balance.
Used in: Mortgage Calculator, Net Worth Calculator
Example: A $400,000 home with a $250,000 mortgage gives you $150,000 of equity.
Definition: An interest rate that remains the same for the entire term of a loan or investment. Borrowers get payment certainty; the lender absorbs the risk of rates moving against them.
Used in: Mortgage Calculator, Loan Payment Calculator
Example: A 30-year fixed mortgage at 6.5% will charge exactly 6.5% for all 360 months.
Definition: A widely used credit-score model ranging from 300 to 850 that summarizes a borrower's creditworthiness based on payment history, balances, credit age, mix, and new inquiries. Higher is better.
Used in: Credit Score Calculator, Mortgage Calculator
Example: Scores above 740 typically qualify for the best mortgage rates; below 620 is considered subprime.
Definition: The most widely used credit score (300-850), calculated from payment history, amounts owed, credit age, mix and new credit.
Used in: Credit Score Calculator
Example: A FICO score of 740+ usually qualifies for the best mortgage and loan rates.
Definition: A weighted average of a student's course grades on a numeric scale, most often 0.0-4.0 in the US. Weighted GPAs give extra points for honors and AP coursework.
Used in: GPA Calculator, Final Grade Calculator
Example: Earning As (4.0) in three 3-credit classes and a B (3.0) in one yields a GPA of 3.75.
Definition: A measure of how much blood the kidneys filter per minute, expressed in mL/min/1.73m². It is the most important number for staging kidney disease.
Used in: Blood Pressure Calculator, Body Age Calculator
Example: A normal GFR is above 90; below 60 for three months indicates chronic kidney disease.
Definition: Total earnings before any taxes, deductions or withholdings are taken out.
Used in: Tax Calculator, Payroll Calculator
Example: A $60,000 salary is gross income; take-home pay is lower after taxes and deductions.
Definition: How effectively a heating, ventilation, or air-conditioning system converts energy input into heating or cooling output. Common ratings include SEER (cooling), AFUE (gas furnaces), and HSPF (heat pumps).
Used in: HVAC Calculator, Electricity Calculator
Example: Upgrading an AC from SEER 10 to SEER 18 can cut cooling costs by about 45%.
Definition: A unit of power equal to 550 foot-pounds of work per second (about 745.7 watts). Engineers use it to rate engines, motors, and other machinery.
Used in: Horsepower Calculator, Engine Displacement Calculator
Example: A typical compact car engine produces around 150 hp; a Formula 1 power unit exceeds 1,000 hp.
Definition: The general rise in prices of goods and services over time, which reduces the purchasing power of each unit of currency. Central banks typically target around 2% per year.
Used in: Inflation Calculator, Retirement Calculator
Example: At 3% inflation, $100 today has the buying power of about $74 in 10 years.
Definition: The percentage charged by a lender to a borrower (or paid to a saver) for the use of money, usually stated on an annual basis. It is the single biggest driver of loan cost and savings growth.
Used in: Loan Payment Calculator, Mortgage Calculator, Compound Interest Calculator
Example: A 1% drop on a $300,000 30-year mortgage saves roughly $180 per month.
Definition: A US tax-advantaged savings account designed for retirement. Traditional IRAs offer tax-deductible contributions; Roth IRAs offer tax-free withdrawals in retirement.
Used in: Retirement Calculator, Investment Return Calculator
Example: In 2026, most savers can contribute up to $7,000/year ($8,000 if 50+) across all IRAs.
Definition: The discount rate at which the net present value of all cash flows from an investment equals zero. It expresses an investment's annualized profitability as a single percentage.
Used in: Investment Return Calculator, ROI Calculator, Property Cash Flow Calculator
Example: A rental investment with an IRR of 12% beats one with an IRR of 8%, all else equal.
Definition: A low-cost fund that tracks a market index (like the S&P 500) rather than being actively managed, offering broad diversification.
Used in: Investment Return Calculator, Compound Interest Calculator
Example: An S&P 500 index fund with a 0.03% expense ratio costs just $3/year per $10,000 invested.
Definition: The loan amount divided by the appraised value of the underlying property, expressed as a percentage. Lenders use LTV to gauge risk; the lower the LTV, the better the loan terms.
Used in: Mortgage Calculator, Mortgage Affordability Calculator
Example: A $240,000 mortgage on a $300,000 home is an 80% LTV — the threshold above which PMI is usually required.
Definition: How quickly and easily an asset can be converted to cash without significantly affecting its market price. Cash is perfectly liquid; real estate is not.
Used in: Emergency Fund Calculator, Net Worth Calculator
Example: A savings account is highly liquid; a vacation home may take months to sell at fair value.
Definition: The use of borrowed money to increase the potential return — and risk — of an investment. Leverage magnifies both gains and losses on the invested capital.
Used in: Property Cash Flow Calculator, Options Profit Calculator, Rental Yield Calculator
Example: Buying a $200,000 property with $40,000 down means using 5x leverage.
Definition: The three energy-providing nutrients — protein, carbohydrates, and fats — measured in grams per day. Tracking macro splits is the foundation of most performance and physique nutrition plans.
Used in: Macro Calculator, Protein Calculator, TDEE Calculator
Example: A 2,500 kcal day on a 40/30/30 split equals 250 g carbs, 188 g protein, 83 g fat.
Definition: A long-term loan secured by real estate, repaid in regular principal-and-interest installments. If payments stop, the lender can foreclose and sell the property.
Used in: Mortgage Calculator, Mortgage Affordability Calculator
Example: A $300,000, 30-year mortgage at 6.5% has a monthly principal-and-interest payment of about $1,896.
Definition: The amount added to the cost price of a product to cover overhead and profit, expressed as a percentage of cost. Markup is calculated on cost; margin is calculated on selling price.
Used in: Markup Calculator, Profit Margin Calculator
Example: An item that costs $40 sold for $60 has a 50% markup (and a 33% margin).
Definition: Profit as a percentage of selling price (in retail) or borrowed funds in a brokerage account (in investing). The two meanings are unrelated but share the same word.
Used in: Profit Margin Calculator, Markup Calculator
Example: Selling a $60 product that cost $40 yields a $20 gross profit and a 33% margin.
Definition: The value of everything you own (assets) minus everything you owe (liabilities). It is the single best snapshot of personal financial health.
Used in: Net Worth Calculator, Retirement Calculator
Example: Assets of $350,000 (home, savings, car) minus $180,000 in debt equals a net worth of $170,000.
Definition: The sum of all discounted future cash flows from an investment minus the initial cost. A positive NPV means the investment is expected to add value at the chosen discount rate.
Used in: Investment Return Calculator, Property Cash Flow Calculator
Example: An investment costing $10,000 that returns a present-value stream of $12,000 has an NPV of $2,000.
Definition: Earnings remaining after all taxes, deductions and expenses - your actual take-home pay or a company bottom-line profit.
Used in: Payroll Calculator, Budget Calculator
Example: A $5,000 gross monthly salary might leave about $3,900 net after taxes and deductions.
Definition: The value of the next-best alternative given up whenever you make a choice. Every financial decision has an opportunity cost, even if no cash changes hands.
Used in: Investment Return Calculator, Savings Goal Calculator
Example: Spending $20,000 on a car instead of investing it at 7% costs you about $39,000 in lost growth over 10 years.
Definition: Ongoing business expenses not tied directly to producing a product or service, such as rent, utilities and salaries.
Used in: Break-Even Calculator, Profit Margin Calculator
Example: If overhead is $10,000/month and each unit contributes $20, you must sell 500 units to break even.
Definition: The original amount of money borrowed in a loan or invested in an account, separate from any interest earned or paid. Loan payments reduce the principal while interest is paid on top.
Used in: Loan Payment Calculator, Mortgage Calculator, Compound Interest Calculator
Example: Borrowing $250,000 means $250,000 is the starting principal; each payment chips away at it.
Definition: Net profit divided by revenue, expressed as a percentage. It tells you how many cents of every dollar of sales actually drop to the bottom line.
Used in: Profit Margin Calculator, Break-Even Calculator
Example: $200,000 in revenue with $40,000 in net profit equals a 20% profit margin.
Definition: An annual tax levied by local governments on the assessed value of real estate. Property tax is usually paid through a mortgage escrow account and varies dramatically by location.
Used in: Mortgage Calculator, Property Value Calculator
Example: A 1.2% property-tax rate on a $400,000 home is $4,800 per year, or $400 monthly.
Definition: Insurance lenders require when a borrower makes a down payment of less than 20% on a conventional home loan. PMI protects the lender — not the borrower — if the loan defaults.
Used in: Mortgage Calculator, Mortgage Affordability Calculator
Example: PMI typically costs 0.5%-1.5% of the loan per year — on a $300,000 loan, that's $1,500-$4,500 annually.
Definition: Net profit from an investment divided by its cost, expressed as a percentage. ROI is the simplest profitability measure and works for any investment with clear inflows and outflows.
Used in: ROI Calculator, Crypto ROI Calculator, Investment Return Calculator
Example: Investing $5,000 and ending with $6,500 produces a 30% ROI.
Definition: Net income divided by shareholders' equity, expressed as a percentage. ROE measures how efficiently a company uses owners' capital to generate profit.
Used in: ROI Calculator, Profit Margin Calculator
Example: A company earning $5M with $25M of equity has an ROE of 20%.
Definition: Replacing an existing loan with a new one — usually to lock in a lower rate, shorten the term, change the rate type, or tap home equity. Closing costs must be weighed against the savings.
Used in: Mortgage Calculator, Loan Payment Calculator
Example: Refinancing a $300,000 mortgage from 7% to 5.5% can save more than $250/month.
Definition: Annual rental income divided by the property's value, expressed as a percentage. Gross yield uses raw rent; net yield subtracts expenses and is the more honest figure.
Used in: Rental Yield Calculator, Property Cash Flow Calculator
Example: A $250,000 property renting for $1,800/month produces a gross yield of 8.64%.
Definition: A consumption tax imposed by state and local governments on the sale of goods and (sometimes) services. The buyer pays it at checkout and the seller remits it to the government.
Used in: Tax Calculator, Discount Calculator
Example: A $100 item with 8% sales tax costs $108 at the register.
Definition: Interest calculated only on the original principal, never on accumulated interest. It produces linear growth, in contrast to the exponential growth of compound interest.
Used in: Compound Interest Calculator, Loan Payment Calculator
Example: $10,000 at 5% simple interest earns exactly $500 per year, every year.
Definition: The number of years it takes for the energy savings from a solar PV system to equal its installed cost (after incentives). After payback, all further savings are pure profit.
Used in: Solar Payback Calculator, Solar Panel Calculator
Example: A $20,000 system saving $1,800/year on electricity has a payback period of about 11 years.
Definition: A flat amount taxpayers can subtract from taxable income without itemizing, claimed by about 90% of filers.
Used in: Tax Calculator
Example: The 2026-era standard deduction is roughly $14,600 for single filers and $29,200 for married couples.
Definition: The total calories your body burns per day from basal metabolism, daily activity, exercise, and digestion. TDEE is the calorie target you eat at, above, or below depending on your goal.
Used in: TDEE Calculator, Macro Calculator, Calorie Calculator
Example: A moderately active 30-year-old male, 80 kg, may have a TDEE of about 2,800 kcal/day.
Definition: The duration of a loan or financial contract, usually expressed in months or years. Longer terms lower the monthly payment but increase total interest paid.
Used in: Loan Payment Calculator, Mortgage Calculator, Car Loan Calculator
Example: The same $250,000 loan at 6% costs $1,499/mo over 30 years but $2,109/mo over 15 years — yet saves $190,000 in interest.
Definition: The gratuity paid to a service worker, expressed as a percentage of the bill before tax. US norms range from 15% (basic) to 20%+ (good service).
Used in: Tip Calculator, Percentage Calculator
Example: An 18% tip on a $60 restaurant bill is $10.80.
Definition: The length of time over which a loan is repaid. Longer terms lower monthly payments but raise total interest.
Used in: Loan Payment Calculator, Mortgage Calculator
Example: A 15-year mortgage has higher payments but far less total interest than a 30-year term.
Definition: The amount of three-dimensional space an object or substance occupies, measured in cubic units (m³, ft³, liters, gallons). Volume is essential for construction, cooking, and shipping calculations.
Used in: Volume Calculator, Concrete Calculator, Area Calculator
Example: A pool 10 m long, 5 m wide, and 1.5 m deep holds 75 m³ (75,000 liters) of water.
Definition: An interest rate that changes over time based on an underlying benchmark such as the prime rate, SOFR, or central-bank policy rate. Variable-rate loans start cheaper but can become more expensive if rates rise.
Used in: Mortgage Calculator, Loan Payment Calculator
Example: A 5/1 ARM starts at a fixed rate for 5 years, then adjusts annually based on a benchmark plus a margin.
Definition: The average rate a company pays to finance its assets, weighted by the share of debt and equity in its capital structure. WACC is the standard hurdle rate for evaluating new investments.
Used in: Investment Return Calculator, ROI Calculator
Example: A firm financed 60% by equity (cost 10%) and 40% by debt (after-tax cost 5%) has a WACC of 8%.
Definition: The total volume of fluids a person should consume each day, typically 2-3 liters depending on body size, climate, and activity. Adequate water supports metabolism, joint health, and cognition.
Used in: Water Intake Calculator, Calorie Calculator
Example: An 80 kg adult exercising for an hour daily typically needs about 3.0-3.5 liters per day.
Definition: The portion of each paycheck an employer sends to the government to prepay income tax, Social Security and Medicare.
Used in: Payroll Calculator, Tax Calculator
Example: Accurate withholding avoids both a big tax bill and an oversized refund.
Definition: A mortgage where the interest rate adjusts periodically based on a benchmark (often SOFR). Common formats: 5/1 ARM, 7/1 ARM — fixed for first N years, then adjusts annually.
Used in: Mortgage Calculator, Fixed vs Variable Mortgage
Example: A 5/1 ARM at 5.5% fixed for 5 years could adjust to 7.5%+ in year 6 if rates rise.
Definition: Guaranteed Asset Protection insurance — pays the difference between what you owe on a car loan and the actual cash value if the car is totaled. Useful when underwater on the loan.
Used in: Car Loan Calculator, Car Depreciation Calculator
Example: You owe $25,000 on a car totaled in year 1 with actual value of $19,000 — GAP covers the $6,000 gap.
Definition: A US employer-sponsored retirement account that allows pre-tax (Traditional) or after-tax (Roth) contributions. 2026 limit: $23,000 (+$7,500 catch-up if age 50+).
Used in: Retirement Calculator, 401(k) vs Roth 401(k)
Example: Contributing $20K/yr at 22% bracket saves $4,400 in current taxes via Traditional 401(k).
Definition: Monthly or quarterly fees paid by condo or planned-community homeowners to cover shared maintenance, insurance, amenities, and reserves for major repairs.
Used in: Mortgage Affordability, Condo vs House
Example: $400/mo HOA × 30 years = $144,000 in lifetime fees (excluding annual increases).
Definition: The ratio of loan amount to property value, expressed as a percentage. LTV above 80% typically requires PMI on conventional mortgages.
Used in: Mortgage Calculator, Mortgage Affordability
Example: Buying a $400K home with $80K down = $320K loan = 80% LTV (max without PMI on conventional).
Definition: The CBOE Volatility Index — a real-time market index representing 30-day expected volatility on the S&P 500. Often called the "fear index" because it rises when stocks fall.
Used in: Options Profit Calculator, Investment Return
Example: VIX above 30 signals market panic; below 15 signals calm markets.
Definition: A tax-advantaged US account for medical expenses, available only to those with HSA-eligible HDHPs. Triple tax-advantaged: pre-tax contributions, tax-free growth, tax-free withdrawals for qualified medical.
Used in: Tax Calculator, HSA vs FSA
Example: 2026 limits: $4,300 individual / $8,550 family. Unused balance rolls over forever.
Definition: A pre-tax employer-sponsored account for medical expenses. Unlike HSA, balances mostly use-it-or-lose-it within the plan year (small carryover allowed).
Used in: Tax Calculator, HSA vs FSA
Example: 2026 limit: $3,300. Forfeit any unspent balance over the carryover threshold at year-end.
Definition: A pooled investment fund traded on stock exchanges like individual stocks. Combines diversification of mutual funds with intraday liquidity and lower expense ratios.
Used in: Investment Return, Mutual Funds vs ETFs
Example: SPY (S&P 500 ETF) has a 0.09% expense ratio vs typical 0.5-1% for actively-managed mutual funds.
Definition: Net operating income (NOI) divided by property value, expressed as a percentage. The standard yield metric for investment real estate.
Used in: Rental Yield Calculator, Property Cash Flow
Example: $300K property generating $24K NOI = 8% cap rate.
Definition: The total calories your body burns per day, including BMR plus activity. Use TDEE to set calorie targets for maintenance, weight loss, or gain.
Used in: TDEE Calculator, Calorie Calculator, Calories vs Macros
Example: A 70kg moderately-active adult might have TDEE ~2,400 calories (BMR ~1,550 × 1.55 activity multiplier).
Definition: US legislation (original 2019, "2.0" updates 2022-2024) overhauling retirement rules: raised RMD age to 73 (then 75 by 2033), removed Roth 401(k) RMDs, allowed Roth employer matches.
Used in: Retirement Calculator, 401(k) vs Roth 401(k)
Example: Under SECURE 2.0, a 73-year-old in 2026 starts RMDs; under old rules, 70½ was the trigger.
Definition: Moving money from a Traditional IRA or 401(k) to a Roth account. Taxes are paid on the converted amount in the conversion year, but all future growth and withdrawals are tax-free.
Used in: Retirement Calculator, Tax Calculator, Roth vs Traditional IRA
Example: Converting $50K from Traditional to Roth in a 22%-bracket year costs $11,000 in tax — but locks in tax-free growth thereafter.
Definition: The process of earning full ownership of employer contributions (like 401(k) match or stock grants) over time. Typical schedules: 3-yr cliff or 4-yr graded.
Used in: Retirement Calculator, Employee Turnover
Example: 4-yr graded vesting: 25% vested per year. Leaving after 2 years forfeits 50% of match.
Definition: The minimum amount the IRS requires you to withdraw annually from most retirement accounts starting at age 73 (SECURE 2.0). Failure to take RMD triggers a 25% excise tax (reducible to 10% if corrected).
Used in: Retirement Calculator, Tax Calculator
Example: $500K Traditional IRA at age 73 requires roughly $19,000 RMD (using IRS Uniform Lifetime Table).
Definition: A utility billing arrangement that credits solar-panel owners for excess electricity exported to the grid. Under 1:1 net metering, each kWh exported offsets one kWh imported at retail rate; weaker schemes (e.g., California NEM 3.0) pay much less.
Used in: Solar Panel Calculator, Solar Payback, Solar vs Grid
Example: A solar home exporting 4,000 kWh/yr and importing 4,000 kWh/yr has a $0 net energy bill under 1:1 net metering.
Definition: A US federal tax credit for installing solar (and some other renewable) systems. As of 2026, the residential ITC is 30% of total installed cost, stepping down to 26% in 2033 and 22% in 2034.
Used in: Solar Panel Calculator, Tax Calculator
Example: A $25,000 solar installation earns a $7,500 ITC reducing your federal tax bill that year.
Definition: The sum of all costs to acquire, operate, maintain, and dispose of an asset over its useful life. Used to compare options that have different upfront vs ongoing cost profiles (e.g., owning vs leasing, brick vs vinyl siding).
Used in: Car Depreciation, Lease vs Buy Car, Condo vs House
Example: A car's TCO = purchase price + fuel + insurance + maintenance + depreciation − resale value over the ownership period.
Definition: Total monthly debt payments divided by gross monthly income, expressed as a percentage. Mortgage lenders typically cap DTI at 43-50% for qualified mortgages; lower is better.
Used in: Mortgage Affordability, Debt Payoff
Example: $2,000 monthly debt payments ÷ $6,000 monthly gross income = 33% DTI (well within mortgage qualification limits).
Definition: Insurance lenders require when home down payment is less than 20% of purchase price. Protects the lender (not you) if you default. Typically costs 0.5-1.5% of loan amount annually; can be removed at 80% LTV.
Used in: Mortgage Calculator, Mortgage Affordability
Example: $300K mortgage at 1% PMI = $250/mo extra cost until LTV drops below 80%.
Definition: A table showing how each loan payment is split between principal and interest over the loan's life. Early payments are mostly interest; later payments are mostly principal.
Used in: Loan Payment Calculator, Mortgage Calculator
Example: On a $300K 30-year mortgage at 7%, month 1 = $1,750 interest + $246 principal; month 360 = $12 interest + $1,984 principal.
Definition: Money your employer contributes to your 401(k) on top of your own contributions, usually as a percentage of your salary or a fraction of what you contribute. Considered "free money" — never leave it on the table.
Used in: Retirement Calculator, 401(k) vs Roth 401(k)
Example: A common match: 100% of first 3% of salary + 50% of next 2% = up to 4% bonus. On $80K salary, that's $3,200/yr free.
Definition: The timetable that determines when employer-contributed funds (401(k) match, stock grants) become fully yours. Common formats: 3-year cliff (0% then 100%) or 4-6 year graded (e.g., 20% per year).
Used in: Retirement Calculator, Employee Turnover
Example: Leaving an employer after 2 years on a 4-yr graded vesting schedule (25%/yr) forfeits 50% of the unvested match.
Definition: Three return metrics often confused. ROI = (Gain − Cost) / Cost — simple. ROE = Net Income / Shareholder Equity — corporate finance. IRR = the discount rate that makes net present value of cash flows zero — investment analysis.
Used in: ROI Calculator, Investment Return
Example: $10K invested → $14K return: ROI = 40%. Compounded over 4 years: IRR ≈ 8.8%/yr.
Definition: The maximum data transfer rate of an internet connection, usually expressed in Mbps (megabits per second) or Gbps. Higher bandwidth = faster downloads, smoother streaming, more simultaneous devices.
Used in: Internet Speed Calculator
Example: A 4K Netflix stream needs ~25 Mbps; a household of 4 streaming simultaneously needs ~100 Mbps minimum.
Definition: APR is the simple annualized rate (ignores compounding). APY reflects the effective rate including compounding. A 6% APR compounded monthly = 6.17% APY. Lenders quote APR; savers compare APY.
Used in: Compound Interest, APR vs APY
Example: $10K at 5% APR monthly = $10,512 after 1 year (5.12% APY). The 0.12% gap is "interest on interest."
Definition: A fixed monthly payment for a loan that includes both principal and interest, calculated so the loan is fully paid by maturity. Common term outside the US.
Used in: Loan Payment, Mortgage
Example: $100,000 loan at 7% for 5 years has EMI of $1,980/month — same payment every month for 60 months.
Definition: A separate account held by a third party (often your mortgage lender) that collects monthly contributions to pay property tax and homeowners insurance when due. Built into your mortgage payment.
Used in: Mortgage Calculator, Mortgage Affordability
Example: $6,000 annual property tax + $1,800 insurance = $650/mo added to your mortgage payment via escrow.
Definition: A stock's price divided by its earnings per share. Indicates how much investors are willing to pay per $1 of earnings. Lower = potentially undervalued; higher = growth expected. Market average historically ~16-20.
Used in: Investment Return, ROI Calculator
Example: A stock at $100 with $5 EPS has a P/E of 20 — investors paying $20 for each $1 of annual earnings.
Definition: The discount rate that makes the net present value (NPV) of all cash flows equal to zero. Used to evaluate investment profitability and rank multiple projects.
Used in: Investment Return, ROI Calculator, Property Cash Flow
Example: Invest $1,000, receive $200/yr for 7 years → IRR ≈ 9.2% — the effective annualized return on the project.
Definition: Upfront fees paid to the lender to reduce the mortgage interest rate. 1 point = 1% of loan amount, typically lowers rate by 0.25%. Break-even analysis determines if it's worth it.
Used in: Mortgage Calculator, Loan Payment
Example: $300K mortgage + 1 point ($3,000 upfront) saves ~$50/mo → break-even at 60 months.
Definition: Replacing an existing loan with a new one — usually to lower the interest rate, change the term, or tap home equity (cash-out refi). Worth it when rate drops meaningfully exceed closing costs.
Used in: Mortgage Calculator, Loan Payment
Example: Refinance $300K mortgage from 8% to 6.5%: saves $300/mo. With $5K closing costs, breaks even in 17 months.
Definition: Federal Deposit Insurance Corporation coverage that protects bank deposits up to $250,000 per depositor, per bank, per account category if the bank fails. Standard since 1933.
Used in: Savings Goal, Emergency Fund
Example: $400K in a single bank: $250K is FDIC-insured; the remaining $150K is uninsured. Spread across 2 banks for full protection.
Definition: A federal law allowing employees to continue employer-sponsored health insurance for up to 18 months after job loss, at their own cost plus a 2% admin fee. Often expensive but ensures continuity.
Used in: Budget Calculator, Emergency Fund
Example: Job with $600/mo employer health insurance: COBRA cost is ~$612/mo (full premium + 2%) for 18 months.
Definition: An employer-funded health account that reimburses employees tax-free for qualified medical expenses. Different from HSA: HRA is employer-only contributions, not employee.
Used in: Tax Calculator, Budget Calculator
Example: Employer funds $2,000/yr HRA; you submit doctor bills for reimbursement up to that limit.
Definition: Company stock granted to employees that vests over time (typically 4 years with 1-year cliff). Once vested, treated as taxable ordinary income at fair-market value.
Used in: Tax Calculator, Net Worth
Example: Granted 4,000 RSUs vesting 25%/yr: each year 1,000 shares vest, taxed at current market value (often $80K-$150K+ taxable income event).
Definition: Self-employed and some employee deductions allowing per-mile claim for business driving. 2026 IRS rate: 67¢/mile for business use. Either mileage method or actual-expense method (not both).
Used in: Tax Calculator, Fuel Economy
Example: Self-employed driver covering 12,000 business miles: 12,000 × $0.67 = $8,040 tax deduction.
Definition: The combined Social Security (12.4%) and Medicare (2.9%) tax that self-employed people pay on net earnings — equivalent to both the employee and employer halves of FICA. Total: 15.3% on first $168,600 (2026), 2.9% thereafter.
Used in: Tax Calculator, Hourly to Salary
Example: Freelancer with $80K net SE income owes $11,304 in SE tax — on top of regular federal/state income tax.
Definition: A strategy of converting chunks of Traditional IRA/401(k) to Roth annually during low-income years, then waiting 5 years to withdraw each conversion penalty-free. Popular among early-retirement (FIRE) movement.
Used in: Retirement Calculator, Tax Calculator
Example: Early retiree converts $50K/yr to Roth in 12% bracket years instead of paying 22% later — saves 10pp tax per dollar converted.
Definition: Making a large principal payment and asking the lender to recalculate the monthly payment based on the new lower balance (same rate, same term). Cheaper than refinancing — usually a $250-$500 fee.
Used in: Mortgage Calculator, Loan Payment
Example: Pay $50K lump-sum on a $300K mortgage and recast → monthly payment drops by $300+ without closing costs of full refinance.
Definition: A revolving credit line secured by your home equity, with 10-year draw period (interest-only) and 20-year repayment period (P+I). Variable rate tied to prime.
Used in: Loan Payment, Home Equity Loan vs HELOC
Example: $50K HELOC drawn for 3-yr renovation phases: interest-only ~$333/mo at 8% during draw, then full P+I in repayment phase.
Definition: A lender's conditional commitment for a specific loan amount based on verified income, credit, and assets. Stronger than pre-qualification — sellers take pre-approved offers more seriously.
Used in: Mortgage Affordability, Mortgage Calculator
Example: Pre-approval letter typically valid 60-90 days; ages out after that and requires re-running credit.
Definition: Moving funds from a former employer's 401(k) to a new employer's plan or to an IRA without triggering taxes. Must complete direct rollover within 60 days to avoid 20% mandatory withholding.
Used in: Retirement Calculator, Tax Calculator
Example: Direct trustee-to-trustee rollover of $80K from old 401(k) to IRA: $0 tax, $0 penalty, full balance preserved.
Definition: A strategy for high earners (above Roth IRA income limits) to fund a Roth IRA: contribute to a Traditional IRA non-deductibly, then convert to Roth. Watch for pro-rata rule.
Used in: Retirement Calculator, Tax Calculator
Example: High earner contributes $7,000 to Traditional IRA, immediately converts to Roth → bypasses Roth income limits ($165K single 2026).
Definition: A way to put up to $46,500/yr extra into Roth via after-tax 401(k) contributions, then in-plan converting to Roth. Only available if your 401(k) plan allows after-tax contributions AND in-service withdrawals.
Used in: Retirement Calculator
Example: Total 401(k) limit 2026: $69,500 ($23K employee + $46.5K combined match/after-tax). Convert after-tax piece to Roth = $46.5K extra Roth/yr.
Definition: A mutual fund that automatically rebalances its asset allocation more conservatively as you approach a target retirement year. Common default investment in 401(k) plans.
Used in: Retirement Calculator, Investment Return
Example: "Vanguard Target Retirement 2055": 90% stocks today (28 years out), shifts to ~50/50 stocks/bonds at retirement.
Definition: Yield to Maturity — the total annualized return if you hold a bond to maturity, accounting for coupon payments + capital gain/loss vs current price. Different from coupon rate.
Used in: Investment Return, Compound Interest
Example: 5% coupon bond bought at $98 (discount to $100 par) has YTM > 5% because you'll also gain $2 capital appreciation at maturity.
Definition: A time-locked bank deposit with a fixed rate and term (3 months to 5 years typical). FDIC-insured up to $250K. Early withdrawal penalty: typically 3-6 months of interest.
Used in: Savings Goal, Compound Interest
Example: 1-year CD at 4.75% APY on $25K = $1,188 interest. Penalty for early withdrawal at month 6: typically 6 months interest forfeited.
Definition: Short-term US government debt (4, 8, 13, 17, 26, 52 weeks). Sold at discount; mature at face value. Backed by full faith and credit of the US — considered risk-free.
Used in: Investment Return, Compound Interest
Example: Buy 13-week T-Bill at $9,875; mature at $10,000 → $125 gain ≈ 5.06% annualized yield.
Definition: US Treasury savings bonds with rate combining a fixed component + inflation-adjustment component. Holdings capped at $10K/yr via TreasuryDirect (+$5K via tax refund).
Used in: Inflation Calculator, Investment Return
Example: Nov 2025 I-Bond: 1.30% fixed + 1.97% inflation = 3.27% composite. Inflation-component resets every 6 months.
Definition: A mental math shortcut: years to double money under compounding ≈ 72 ÷ annual rate. Accurate for rates 4-15%.
Used in: Compound Interest, Investment Return
Example: At 7% return: 72/7 ≈ 10.3 years to double. At 10%: 7.2 years. At 4%: 18 years.
Definition: A budgeting framework: 50% of after-tax income to needs (housing, food, transportation), 30% to wants (dining, entertainment), 20% to savings + debt payoff beyond minimums.
Used in: Budget Calculator, Savings Goal
Example: $5K/mo after-tax: $2.5K needs + $1.5K wants + $1K savings/debt payoff.
Definition: Ketogenic diet macronutrient ratios — typically 70-75% calories from fat, 20-25% protein, 5-10% carbs (under 50g/day). Forces body into ketosis where fat is primary fuel.
Used in: Macro Calculator, Calorie Calculator
Example: 2,000 cal day on keto: 167g fat + 100g protein + 25g carbs (vs 200g+ carbs on standard diet).
Definition: Maximum rate at which the body can use oxygen during intense exercise, measured in ml/kg/min. Best single predictor of cardiovascular fitness and longevity.
Used in: Heart Rate Calculator, Running Pace Calculator
Example: Average sedentary adult: 30-35 ml/kg/min. Trained marathoner: 60-80. Elite athletes: 85+.
Definition: The calories your body burns at rest to maintain basic functions (breathing, circulation, cell repair). Differs slightly from BMR but used interchangeably in practice. Accounts for 60-75% of TDEE.
Used in: Calorie Calculator, TDEE Calculator
Example: Adult woman, 65kg: RMR ~1,350 cal/day. Adult man, 80kg: RMR ~1,750 cal/day. Drops ~2%/decade after 20.
Definition: Percentage of fuel energy converted to usable heat in a furnace. Modern furnaces: 90-98%. Old units: 60-70%.
Used in: HVAC Efficiency, Heat Pump vs Gas Furnace
Example: 95% AFUE furnace converts 95¢ of every $1 in gas to heat; 5¢ lost up the flue.
Definition: Cooling output divided by electricity input over a typical season. Higher = more efficient. 2026 federal minimum: 14 SEER. Top systems: 22+ SEER.
Used in: HVAC Efficiency Calculator, Electricity Cost
Example: 20-SEER AC uses 30% less electricity than 14-SEER at same cooling output.
Definition: Heat pump heating efficiency metric. BTU of heat per watt-hour of electricity over a heating season. 2026 federal min: 8.8 HSPF. Cold-climate models: 11+.
Used in: HVAC Efficiency, Heat Pump vs Gas Furnace
Example: 11-HSPF heat pump uses 20% less electricity for heating than 9-HSPF pump.
Definition: Federal need-based grant for undergraduate students. Doesn't require repayment. 2026-27 max: $7,395. Awarded based on FAFSA.
Used in: College Cost Calculator, Private vs Public College
Example: Family income $30K, dependent student: typically full $7,395 Pell. Income $60K: about $4,000. Income $100K+: usually $0.
Definition: Total estimated annual cost of college: tuition + fees + room & board + books + transportation + personal expenses. The sticker price baseline for financial aid calculations.
Used in: College Cost Calculator, Student Loan
Example: Private school COA 2026-27: ~$78K. Public in-state: ~$32K. Aid offers shown as gap between COA and grants/scholarships.
Definition: Tax-advantaged education savings account. Contributions grow tax-free; withdrawals tax-free if used for qualified education expenses. Some states offer income-tax deduction on contributions.
Used in: College Cost, Compound Interest
Example: $200/mo into 529 from birth at 7% = ~$85K by age 18 — covers half of a 4-yr in-state public.
Definition: Annual application required for any federal financial aid (Pell, work-study, federal loans). Many state and institutional aid also require FAFSA. Opens October 1 each year.
Used in: College Cost, Student Loan
Example: Filing FAFSA unlocks Pell grants, subsidized federal loans, and state-grant eligibility. File even if you think you won't qualify — many don't realize they do.
Definition: Standardized college admissions tests. SAT (College Board): 1600 scale. ACT: 36 scale. Many colleges went test-optional 2020-25; many returning to test-required by 2026-27.
Used in: College Cost Calculator
Example: SAT 1400+ = top 5% nationally; opens merit aid + competitive admissions. ACT 32+ = equivalent percentile.
Definition: Annual percentage increase to Social Security, pensions, or annuity payments to keep pace with inflation. Tied to CPI-W. 2026 COLA: ~3.2%.
Used in: Retirement Calculator, Inflation Calculator
Example: $2,000/mo Social Security at age 70 grows by COLA each year: $2,064 (2026) → $2,130 (2027) at 3.2%.
Definition: Canadian tax-advantaged retirement account, similar to US Traditional IRA. Contributions deduct from taxable income; withdrawals taxed in retirement. 2026 limit: 18% of earned income, max ~CA$31,560.
Used in: Retirement Calculator, Tax Calculator
Example: Canadian earning CA$80K contributing 10% to RRSP: $8K deduction → ~$2,400 tax savings (30% marginal).
Definition: Canadian tax-advantaged account similar to US Roth IRA. After-tax contributions; growth and withdrawals tax-free at any time. 2026 limit: CA$7,000.
Used in: Savings Goal, Compound Interest
Example: Maxing TFSA + RRSP gives Canadians similar diversification as US (Roth + Traditional). TFSA available since 2009; cumulative contribution room ~CA$95K by 2026.
Definition: UK tax-advantaged account. 2026-27 annual allowance: £20,000 split across Cash ISA, Stocks & Shares ISA, Lifetime ISA (under 40), Innovative Finance ISA. All gains tax-free.
Used in: Savings Goal, Investment Return
Example: Maxing Stocks & Shares ISA £20K/yr at 7% for 25 yrs = ~£1.4M tax-free pot.
Definition: Total credit card balances divided by total credit limits. Major FICO score factor — keep under 30% for good scores, under 10% for excellent scores.
Used in: Credit Score Calculator, Debt Payoff
Example: $5K balances on $20K total limit = 25% utilization → good. Same $5K on $10K limit = 50% → hurts score by 30-50 points.
Definition: The time it takes for a business to convert investments in inventory and other resources into cash from sales. CCC = DIO + DSO − DPO. Critical metric for small businesses.
Used in: Break-Even Calculator, Profit Margin
Example: A retailer holds inventory 60 days + collects from customers in 30 days − pays suppliers in 45 days = CCC 45 days. Working capital is needed to bridge those 45 days.
Definition: Mortgage insurance required on FHA loans. Unlike PMI on conventional loans, MIP usually lasts the life of the loan (or 11 years for high down payments). Upfront 1.75% + annual 0.55-1.05%.
Used in: Mortgage Calculator, Mortgage Affordability
Example: $300K FHA loan: $5,250 upfront MIP + $138/mo annual MIP = $1,656/yr for life of loan if <10% down.
Definition: US federal health insurance for age 65+ (and some disabled). Part A: hospital, usually $0 premium. Part B: outpatient, $185/mo 2026. Part C: Medicare Advantage (private replacement). Part D: prescription drugs.
Used in: Retirement, Medicare vs Medicare Advantage
Example: Standard Medicare cost 2026: Part B $185 + Medigap $200 + Part D $50 = $435/mo total premium baseline.
Definition: Private Medicare Supplement insurance that covers gaps in Original Medicare (20% coinsurance on Part B). Standardized plans labeled A-N; Plan G and Plan N most popular. Must enroll during 6-month open enrollment at 65 for guaranteed acceptance.
Used in: Retirement Calculator, Medicare vs Advantage
Example: Plan G in 2026 costs $150-$280/mo and caps your Medicare out-of-pocket at the annual Part B deductible (~$240).
Definition: Federal law allowing former employees to continue employer health coverage for 18 months (up to 36 in some cases) at full premium + 2% admin fee. Expensive but ensures continuity.
Used in: Budget Calculator, Emergency Fund
Example: Employer paid $600/mo of $750 health insurance; COBRA after job loss = $765/mo (full $750 + 2%).
Definition: 2026 HSA annual contribution limits: $4,300 self-only / $8,550 family. +$1,000 catch-up at age 55+. HDHP minimum deductible: $1,650 self / $3,300 family. Maximum OOP: $8,300 / $16,600.
Used in: Tax Calculator, HSA vs FSA
Example: Family maxing HSA at 24% bracket: $8,550 × 24% = $2,052 federal tax savings (plus state if applicable).
Definition: Deduction reduces taxable income (saves you tax rate × deduction). Credit reduces tax owed dollar-for-dollar. A $1,000 credit beats a $1,000 deduction at any tax bracket.
Used in: Tax Calculator
Example: 22% bracket: $1K deduction saves $220 in tax. $1K credit saves $1,000. Credits are 4-5x more valuable per dollar.
Definition: Some utilities (especially CA) charge higher per-kWh rates as monthly usage exceeds tiers. Tier 1 baseline ~16¢/kWh, Tier 2 ~25¢, Tier 3 ~40¢. Heavy users disproportionately benefit from solar.
Used in: Electricity Cost, Solar Panel
Example: CA household using 1,000 kWh/mo: first 400 at 16¢, next 400 at 25¢, last 200 at 40¢ = average 23¢/kWh.
Definition: Pans with magnetic-iron base. Cast iron, enameled cast iron, magnetic-bottomed stainless steel all work. Aluminum, copper, glass, ceramic do not unless they have a magnetic plate added.
Used in: Gas vs Induction Stove
Example: Test by holding a fridge magnet to the pan bottom. Strong stick = induction-compatible. No stick or weak = won't heat.
Definition: A regulatory system that sets a total cap on carbon emissions and allows companies to trade emission permits. Used in California, EU, RGGI states. Adds a price on carbon that flows through to consumer energy prices.
Used in: Carbon Footprint, Electricity Cost
Example: CA cap-and-trade currently adds ~$0.20-$0.30 per gallon to gas prices, $0.02/kWh to electricity.
Definition: Ranking of carbohydrates 0-100 by their effect on blood sugar. Low GI (under 55): slow rise (oats, lentils, sweet potatoes). High GI (70+): fast spike (white bread, sugary cereals, white rice).
Used in: Calorie Calculator, Macro Calculator
Example: Brown rice GI ~50; white rice GI ~73. Substituting brown for white slows blood-sugar rise and improves satiety.
Definition: A home that produces as much renewable energy as it consumes over a year. Typically combines solar panels + heat pump + induction + battery + insulation upgrades.
Used in: Solar Payback, Carbon Footprint
Example: $50K upfront (solar + heat pump + induction + EV charger) → $0 utility bills + freedom from gas + electricity inflation.
Definition: ARR (Annual Recurring Revenue) = predictable annualized subscription revenue. MRR (Monthly) = monthly equivalent. Core metrics for SaaS valuation, often 10-20x ARR multiple at IPO.
Used in: Profit Margin, Break-Even
Example: SaaS with 1,000 customers @ $50/mo = $50K MRR = $600K ARR. At 15x multiple = $9M company valuation.
Definition: CAC = Customer Acquisition Cost. LTV = Customer Lifetime Value. Healthy SaaS: LTV/CAC ratio 3:1 or higher. Payback period under 12 months.
Used in: Break-Even Calculator, Profit Margin
Example: Spend $300 to acquire a customer worth $1,200 lifetime: LTV/CAC = 4. Healthy.
Definition: Paying extra upfront to reduce mortgage rate for first few years (temporary) or entire term (permanent). Common builder incentive: 2-1 buydown reduces rate 2pp year 1, 1pp year 2.
Used in: Mortgage Calculator
Example: 7% mortgage with 2-1 buydown: 5% in year 1, 6% in year 2, 7% from year 3 onward. Builder pays ~$8K for the temporary rate reduction.
Definition: State, local, or non-profit programs that help first-time homebuyers cover down payment + closing costs. Grants, forgivable loans, or matching funds. Varies by state ($5K-$25K typical).
Used in: Mortgage Affordability, Savings Goal
Example: Texas TSAHC program: up to 5% of loan amount toward DP + closing for qualified low-income first-time buyers. Check your state's housing finance agency.
Definition: Amortizing: each payment includes principal + interest, fully paid off at maturity. Interest-Only: payments cover only interest, principal due at term end (or amortized later).
Used in: Loan Payment, Mortgage Calculator
Example: $300K loan @ 7%: amortizing 30-yr = $1,996/mo (P+I). Interest-only = $1,750/mo first 10 yrs, then $2,323/mo after.