Your mortgage payment is more than principal and interest. Most homeowners also pay property tax, home insurance and HOA dues every month — and sometimes PMI too. Our free monthly mortgage calculator with taxes and insurance adds them all up, so you see the full monthly cost before you buy, not a surprise after.
Educational estimates only, not financial advice.
How to use this calculator
- Enter the home price and down payment — the calculator works out the loan amount for you.
- Enter the interest rate and loan term — for example, 6.5% over 30 years.
- Enter the annual property tax and annual home insurance — the calculator adds a twelfth of each to your monthly payment.
- Add monthly HOA dues if you have them, and check the PMI box — if your down payment is under 20%, the calculator suggests PMI automatically. You can change the PMI rate or switch it off.
- Read the result — the full monthly payment at the top, then the breakdown: principal and interest, tax, insurance, HOA and PMI.
How it works
Lenders call the full payment PITI: Principal + Interest + Taxes + Insurance. Principal and interest come from the standard loan formula. Tax and insurance are annual amounts divided by 12, and your lender usually collects them each month into an escrow account and pays the bills for you. HOA dues are added as a flat monthly amount. PMI (private mortgage insurance) is added when your loan is more than 80% of the home’s value — that is, when your down payment is under 20%.
Worked example: a $350,000 home with a 20% down payment ($70,000), so the loan is $280,000. At 6.5% interest over 30 years, principal and interest come to $1,769.79 a month. Property tax of $4,200 a year adds $350 a month; home insurance of $1,800 a year adds $150 a month. There is no HOA and no PMI (the 20% down payment avoids it). Full monthly payment: $2,269.79. Over 30 years you would pay $357,124.57 in interest and $817,124.57 in total.
Frequently asked questions
What does PITI mean?
PITI stands for Principal, Interest, Taxes and Insurance — the four parts of most monthly mortgage payments. It is the number lenders use when they check whether you can afford a home.
What is PMI and when do I pay it?
PMI is private mortgage insurance. Lenders usually require it when your down payment is under 20%, because the loan is riskier for them. It normally drops off once you reach 20% equity in the home (around 78–80% loan-to-value). The calculator suggests it automatically while your loan is above 80% of the home price.
How are property taxes worked out?
Your local tax rate multiplied by your home’s assessed value. Rates vary a lot by area, and the amount can change when your home is reassessed. Ask your local tax office or check a recent tax bill for the area.
Why is my payment higher than principal and interest?
Because your lender collects tax and insurance each month into an escrow account and pays those bills for you. That escrow part is often 20–30% of the total payment.
Can my monthly payment change?
Yes. On a fixed-rate loan, principal and interest never change — but tax and insurance amounts do, and your lender adjusts the escrow part each year. That is why the payment can go up or down slightly even when your loan rate is fixed.
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