Get a clear picture of your home-buying budget with Offerpad’s easy-to-use mortgage payment calculator. Whether you’re shopping for your dream home or planning your next move, our tool helps you understand what you can afford—fast.
Mortgage Payment Calculator
📘 > Mortgage Calculator Help Guide
Inputs — Basic (Option 1)
- Loan amount — Principal borrowed. Used as P.
- Interest rate (APR) — Nominal annual rate (not true APR). Monthly rate r = APR ÷ 100 ÷ 12.
- Term (years) — Loan length. Months n = years × 12.
- Taxes & insurance (monthly) — Escrow estimate added to payment.
- HOA (monthly) — Association dues added to payment.
Inputs — Advanced (Option 2)
- Home price — Purchase price.
- Down payment (amount / %) — Upfront cash. Down% = Down ÷ Price × 100.
- Base interest rate (APR) — Nominal annual rate used for monthly interest.
- Term (years) — Loan length as above.
- Points — % of base loan. Cost = base loan × points%.
- Points mode — Paid at closing or Financed by adding to principal.
- Interest‑only months — Months where payment covers interest; principal falls only via extra/lump payments.
- Property tax rate — % of price per year. Monthly taxes = price × rate% ÷ 100 ÷ 12.
- Homeowners insurance (annual) — Annual premium. Monthly = annual ÷ 12.
- HOA dues + frequency — Monthly/Quarterly/Annual; converted to monthly.
- Extra monthly principal — Added each month to reduce balance faster.
- Lump‑sum prepayment — One‑time principal reduction in chosen month.
- PMI (annual rate) — % of original loan per year; drops at ≤78% LTV of original value.
- Borrower monthly gross income — For DTI math (optional).
- Other monthly debts — Non‑housing debts for back‑end DTI (optional).
Derived / Computed Values
- Monthly interest rate — r = APR ÷ 100 ÷ 12.
- Number of payments — n = years × 12.
- Base loan — price − down payment.
- Financed loan amount — base loan + points cost (if financed).
- Principal & Interest (PI) — If r>0: PI = P × r × (1+r)^n / ((1+r)^n − 1); if r=0: PI = P ÷ n.
- Escrow — Monthly taxes + monthly insurance.
- HOA (monthly) — Converted to monthly when needed.
- PMI (monthly) — While Balance > 0.78 × price; approximate as original loan × PMI% ÷ 100 ÷ 12.
- Total Monthly Payment — Basic: PI + escrow field + HOA. Advanced: current mortgage payment (IO or amortizing) + Escrow + HOA + PMI.
- Amortization schedule — Month‑by‑month Payment / Principal / Interest (/ PMI in Advanced) / Balance.
- Payoff date — Estimated month/year when balance hits zero (from today).
- Total interest paid — Sum of all interest over life of loan.
- Interest saved vs. baseline — Difference between scenario with extra/lump and same scenario with neither.
- Front‑end DTI — (Mortgage + Escrow + HOA + PMI) ÷ Income × 100%.
- Back‑end DTI — (Housing costs + Other debts) ÷ Income × 100%.
Concepts
- LTV (Loan‑to‑Value) — current balance ÷ original price. PMI drops at ≤78% LTV (based on original value in this calculator).
- Interest‑only phase — Scheduled payment covers interest; principal falls via extra/lump payments only.
- CSV export — Advanced calculator can download the amortization schedule.
Tip: You can keep this panel open by default (it ships open). Remove the open attribute to have it collapsed initially.
How To Use the Mortgage Payment Calculator
- Enter your loan details – Add your home price, down payment, and loan term.
- Adjust your rate – Input your estimated interest rate to see how it affects your monthly payment.
- Review your results – Get your personalized monthly mortgage estimate in seconds.
- Plan your next move – Use your results to calculate your mortgage payment and explore homes that fit your budget with Offerpad.
See What Fits Your Budget
Buying a home is exciting, but it’s also one of the biggest financial decisions you’ll make. Our calculator gives you instant clarity by breaking down your monthly mortgage estimate based on your loan amount, interest rate, term, and down payment. If you’ve decided to sell one property and buy another, you can also find out what your home could sell for today to understand your complete financial picture.
Why You Need a Mortgage Calculator
Knowing what your monthly payment looks like before you buy helps you:
- Stay within your financial comfort zone and debt-to-income ratio, so you don’t spend more than you can afford.
- Compare home prices and interest rates.
- Decide on the loan term — 10-, 15-, 20-, or 30-year —based on monthly payments and total interest.
- Weigh different downpayment scenarios.
- Plan ahead for taxes, home insurance, and HOA fees.
- Make informed decisions when it’s time to make an offer so you can buy your next home with confidence.
What Factors Influence Your Monthly Mortgage Payment?
When you calculate your mortgage payment, a bunch of different factors come together to determine your total monthly amount. Knowing what goes into it helps you stay on top of your budget and avoid surprises down the road.
Here’s what’s typically included:
- Principal – The portion of your payment that goes toward paying down the original amount you borrowed.
- Interest – The cost of borrowing money from your lender, based on your loan’s interest rate.
- Property Taxes – Annual taxes set by your local government, often divided into monthly installments and included in your payment.
- Homeowner’s Insurance – Protects your home and belongings from damage or loss; many lenders require you to include this in your monthly payment.
- Private Mortgage Insurance (PMI) – If your down payment is less than 20%, you may need PMI, which protects the lender in case of default.
- HOA Fees (if applicable) – For homes in communities with homeowners’ associations, these fees may also factor into your total monthly housing cost.
- Loan Term – A shorter loan term (like 15 years) means higher monthly payments but less interest paid overall. A longer term (like 30 years) lowers monthly payments but increases total interest.
- Interest Rate Type – Fixed-rate mortgages keep your payment steady, while adjustable-rate mortgages (ARMs) can fluctuate over time based on market conditions.
- Credit Score – A higher credit score can help you secure a lower interest rate, which reduces your monthly payment.
- Loan Type – Conventional, FHA, VA, or USDA loans each come with different qualification rules, fees, and insurance requirements that affect your total payment.
- Down Payment Amount – A larger down payment means you borrow less, which lowers both your principal and interest costs.
- Property Location – Taxes and insurance rates can vary by city, county, and even neighborhood, impacting your monthly total.
- Escrow Account – Many lenders require an escrow account to cover property taxes and insurance, which spreads these costs across your monthly payments.
- Home Maintenance or HOA Costs – Though not part of the loan itself, these recurring expenses still affect your overall monthly housing budget.
Take the Guesswork Out of Home Financing
At Offerpad, we make it easy to calculate your mortgage payment so you can move forward with confidence. Whether you’re buying or looking to sell your home easily with Offerpad, our team is here to simplify every step so there’s no confusion, no surprises, just clarity.
Need To Lower Your Mortgage Payment?
If your current payments feel too high, there are several smart ways to make your mortgage more manageable. Here’s how to lower your monthly costs and take control of your budget:
- Refinance your loan – Shop for a lower interest rate or extend your loan term to reduce your monthly payment amount.
- Make a larger down payment – If you’re still house hunting, putting more money down upfront can shrink your principal balance and lower your monthly payments.
- Eliminate private mortgage insurance (PMI) – Once you’ve built up 20% equity in your home, you may be able to remove PMI and save each month.
- Consider an adjustable-rate mortgage (ARM) – If you plan to sell or refinance in a few years, an ARM may offer lower initial rates.
- Pay down other debts – Improving your debt-to-income ratio can help you qualify for better loan terms when refinancing.
- Shop around for homeowner’s insurance – Lower insurance premiums can reduce your total monthly mortgage payment.
Even small adjustments can make a big difference. Explore your options and see how much you could save by revisiting your mortgage strategy today.
Ready To Get Started?
Use our mortgage payment calculator to get your monthly mortgage estimate now and see how affordable your next move can be.
