Free Mortgage Calculator with Taxes & Insurance

Get your complete monthly PITI payment — principal, interest, property taxes, and homeowner's insurance — instantly. Adjust any input and see results in real time.

Calculate Your Mortgage

$
$
Years
%

Monthly Payment

$1,520.06

Payment Breakdown

Principal & Interest $1,216.04
Property Tax $250.00
Home Insurance $54.02

How to Use This Mortgage Calculator

Follow these three steps to get your personalized monthly payment estimate in seconds.

1

Enter Property Details

Input your home price and down payment using the text fields or sliders. Then select your loan term — 5, 10, 15 years, or a custom length up to 50 years. Enter your expected interest rate.

2

See Your Instant Payment

The calculator instantly computes your monthly principal and interest using the standard amortization formula, then adds estimated property taxes and homeowner's insurance for a complete PITI total.

3

Review the Payment Chart

The interactive donut chart shows exactly how your monthly payment splits between principal & interest, property taxes, and insurance — giving you a clear picture of where each dollar goes.

Understanding Your Mortgage Results

Your monthly payment number is only part of the picture. Understanding what drives each component helps you make smarter decisions about home price, down payment, and loan term.

Core Calculator Components

Principal and Interest (P&I)

Your monthly P&I payment is calculated using an amortization formula. It factors in your loan amount (home price minus down payment), your interest rate, and your loan term. Early payments are heavily weighted toward interest — on a $300,000 loan at 6.5% for 30 years, the first payment of $1,896 allocates about $1,625 to interest and only $271 to principal. Over time, that ratio reverses as your loan balance decreases.

Property Taxes and Insurance

Property taxes are estimated at approximately 1% of the home's value annually, divided into 12 monthly installments through your escrow account. Homeowner's insurance is estimated at roughly 0.35% of home value per year. These are national averages — actual rates vary significantly by location. New Jersey homeowners pay average property tax rates above 2%, while Hawaii and Alabama homeowners pay well under 0.5%.

Private Mortgage Insurance (PMI)

If your down payment is below 20% of the home's purchase price, your loan-to-value ratio exceeds 80% and most conventional lenders require PMI. PMI typically costs between 0.4% and 1.5% of your loan amount annually. On a $280,000 loan, that's roughly $93–$350 per month added to your payment. Once your equity reaches 20%, you can request PMI cancellation — saving you that monthly cost for the remaining loan life.

The 28/36 Rule for Affordability

Most lenders and financial advisors apply the 28/36 rule to evaluate mortgage affordability. Your total housing payment (PITI) should not exceed 28% of your gross monthly income. Your total debt obligations — including mortgage, car loans, student loans, and credit cards — should not exceed 36% of gross monthly income. On a household income of $7,500/month, that means a maximum housing payment of $2,100 and total debts no higher than $2,700.

Financial Planning Considerations

  • Keep total housing costs under 28% of gross monthly income
  • A 20% or larger down payment eliminates PMI and reduces your loan amount
  • Shorter loan terms (15 years) cost more monthly but save dramatically on total interest
  • Property tax and insurance estimates vary widely by state and county
  • Budget separately for HOA fees, maintenance, and unexpected repairs (typically 1–3% of home value annually)

The Formula Explained

Here's how to calculate your monthly mortgage payment manually — the exact formula behind the calculator.

The Monthly Mortgage Payment Formula

M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

M = Monthly principal & interest payment
P = Loan principal (home price − down payment)
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (years × 12)

Once you calculate M (principal + interest), add your monthly property tax and insurance estimates to get your full PITI payment.

Worked Example: $400,000 Home at 7% for 30 Years

1
Set up variables: Home price = $400,000. Down payment = $80,000 (20%). Loan principal P = $320,000. Annual rate = 7%, so monthly rate r = 0.07 ÷ 12 = 0.005833. Loan term = 30 years, so n = 360 payments.
2
Calculate the numerator: r × (1 + r)ⁿ = 0.005833 × (1.005833)³⁶⁰ = 0.005833 × 8.116 = 0.04734
3
Calculate the denominator: (1 + r)ⁿ − 1 = 8.116 − 1 = 7.116
4
Compute P&I payment: M = $320,000 × (0.04734 ÷ 7.116) = $320,000 × 0.006653 = $2,129/month
5
Add taxes and insurance: Property tax = $400,000 × 0.01 ÷ 12 = $333/month. Insurance = $400,000 × 0.0035 ÷ 12 = $117/month. Total PITI = $2,129 + $333 + $117 = $2,579/month.

Full Loan Summary:

Over 30 years, you make 360 payments of $2,129 = $766,440 total in principal & interest. Subtract the $320,000 principal and you'll pay $446,440 in total interest — more than the original loan amount. This illustrates why reducing your rate by even 0.5% or making small extra payments can save tens of thousands.

Common Use Cases & Tips

Real scenarios where the mortgage calculator gives you the clearest financial picture before you commit.

🏠 First-Time Homebuyer: FHA vs. Conventional Loan Comparison

If you're a first-time buyer with a 5% down payment on a $350,000 home, you have a $332,500 loan. An FHA loan at 6.75% costs about $2,156/month in P&I. A conventional loan at 7.1% costs $2,232/month. But the FHA loan includes a mortgage insurance premium (MIP) of about $154/month — making the FHA total higher than it first appears. Use the calculator to test both scenarios side by side.

📉 Refinancing Decision: Does It Make Sense?

Suppose you have a $280,000 remaining balance at 7.5% with 25 years left. Your current P&I is $2,044/month. Refinancing to 6.75% for 25 years drops that to $1,926/month — saving $118/month. If closing costs are $6,000, your break-even point is 6,000 ÷ 118 = 50.8 months (about 4.2 years). If you plan to stay longer than that, refinancing saves money. Input your current and proposed numbers into the calculator to evaluate your own scenario.

💰 The Impact of a Larger Down Payment

On a $400,000 home at 7%, a 10% down payment ($40,000) leaves a $360,000 loan costing about $2,395/month in P&I plus PMI. A 20% down payment ($80,000) leaves a $320,000 loan at $2,129/month with no PMI required. The extra $40,000 upfront saves $266/month — that's $3,192/year or over $95,000 across 30 years including PMI savings. The calculator helps you visualize this trade-off instantly.

🔄 15-Year vs. 30-Year Mortgage Trade-Off

A $300,000 loan at 6.75% for 30 years costs $1,945/month and $400,200 in total interest. The same loan on a 15-year term at 6.25% costs $2,572/month but only $162,960 in total interest — a savings of $237,240. If your budget can absorb the higher monthly payment, the 15-year mortgage builds home equity far faster and eliminates hundreds of thousands in interest expense. Enter both term options in the calculator to compare your specific numbers.

📊 State-Specific Property Tax: California, Texas & New York

Property tax rates vary enormously by state — which significantly affects your true monthly payment. In California, property taxes are limited to roughly 1.1% of assessed value (Prop 13), so a $600,000 home costs about $550/month in taxes. In Texas, rates average 1.7–2.0%, so a $400,000 home can cost $567–$667/month — often higher than California despite lower home prices. In New York, effective rates average 1.4–2.2% depending on county. When you use this calculator, adjust the result to reflect your actual local tax rate for the most accurate estimate.

⬆️ Extra Payments: How Much Interest Can You Save?

Adding just $200/month to your principal payment on a $300,000 loan at 7% for 30 years reduces the loan term by approximately 5 years and 6 months — and saves over $67,000 in total interest. Even a one-time $5,000 extra payment in year 3 shaves roughly 14 months off your payoff schedule. Use the amortization calculator to model any extra payment scenario and see the exact interest savings.

Related Calculators

Continue planning your home purchase and financial goals with these free tools.

Frequently Asked Questions

Answers to the most common questions about mortgage payments, PMI, and how this calculator works.

The calculator uses the standard amortization formula (M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1]) to compute your principal and interest based on your loan amount, interest rate, and term. It then adds estimated property taxes (1% of home value annually) and homeowner's insurance (0.35% annually) for a complete PITI monthly payment. Results update instantly as you adjust any input.

Your monthly mortgage payment typically includes four components — principal, interest, property taxes, and homeowner's insurance — collectively known as PITI. If your down payment is less than 20% of the home price, lenders usually require private mortgage insurance (PMI), which is added to your monthly payment until your loan-to-value (LTV) ratio drops below 80%.

Private mortgage insurance (PMI) is required when your down payment is less than 20%. PMI typically costs between 0.4% and 1.5% of your loan amount per year, added to your monthly payment. On a $320,000 loan, PMI at 0.8% adds about $213 per month. You can request PMI removal once your equity reaches 20% of the home's original appraised value. PMI is automatically canceled at 22% equity under federal law.

The principal and interest calculation is mathematically exact, using standard U.S. mortgage formulas. Property tax (estimated at 1% annually) and insurance (0.35% annually) are national averages — your actual costs will vary by location. For a precise quote based on your credit score, income, and the specific property, consult a licensed mortgage lender or use a formal pre-approval process.

An amortization schedule shows how each of your monthly mortgage payments is divided between principal and interest across the life of your loan. In the early years, most of each payment goes toward interest. Over time, that shifts so a larger portion reduces your outstanding balance. The schedule also shows your remaining loan balance after each payment — helping you understand how quickly you build home equity.

You can lower your monthly mortgage payment by: (1) increasing your down payment to reduce the loan principal, (2) choosing a longer loan term such as 30 years instead of 15, (3) refinancing to a lower interest rate — even a 0.5% reduction on a $300,000 loan saves about $89/month, (4) eliminating PMI once you reach 20% equity, or (5) shopping multiple lenders and comparing APRs before signing.

Yes. This mortgage calculator with taxes and insurance shows a full PITI estimate. Property taxes are estimated at approximately 1% of home value annually (about $250/month on a $300,000 home) and homeowner's insurance at roughly 0.35% ($87.50/month). These are national averages. Your actual amounts will vary based on your county, state, and insurer — especially in high-tax states like New Jersey, Texas, or New York.

The interest rate is the base cost of borrowing — the percentage used to calculate your monthly P&I payment. The APR (Annual Percentage Rate) includes the interest rate plus lender fees such as origination charges, discount points, and mortgage broker fees, expressed as an annual rate. APR gives a more complete view of the loan's total cost. When comparing loan offers, compare APRs rather than interest rates alone to ensure you're making a true apples-to-apples comparison.

A 15-year mortgage offers a lower interest rate, faster equity growth, and dramatically lower total interest — often $150,000–$250,000 less over the loan's life — but requires higher monthly payments. A 30-year mortgage provides lower monthly payments and more cash flow flexibility. For example, a $320,000 loan at 6.5%: 15-year = $2,790/month, 30-year = $2,023/month. The 30-year saves $767/month but costs an extra $180,000+ in total interest. The right choice depends on your income stability, other financial goals, and whether you value cash flow or total cost savings.

Most lenders and financial advisors apply the 28/36 rule: your total housing costs (PITI) should not exceed 28% of your gross monthly income, and total monthly debts should not exceed 36%. On a $7,500/month gross income, that means a maximum PITI of $2,100. Use this calculator to try different home prices and down payment amounts until you find a monthly payment that fits within 28% of your income. Also factor in emergency savings — most experts recommend having 3–6 months of expenses in reserve after closing.