Most mortgage calculators only show principal and interest — but your real monthly payment is bigger. Property taxes, homeowner’s insurance, PMI and HOA are collected every month too. Work out the full number before you make an offer.
Mortgage Calculator With Taxes and Insurance
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Estimates only, for planning. Conventional PMI estimated at 0.5%/year when the down payment is under 20%. Your lender’s final figures may differ.
What PITI means — the four parts of your payment
Your monthly mortgage payment is usually four parts, called PITI:
Principal — repaying what you borrowed. Interest — the lender’s charge on the loan. Taxes — property tax, collected monthly into an escrow account and paid to your county once or twice a year. Insurance — homeowner’s insurance, also paid through escrow. With less than 20% down on a conventional loan, PMI (private mortgage insurance) is added, and an HOA fee is a fifth cost in many communities.
Taxes and insurance are not fixed like the loan payment: your county can raise the tax rate, and your insurer can raise the premium. That is why lenders quote an escrow payment that can change year to year, and why a payment that fits today can rise later.
Worked example — $400,000 home, 10% down, 6.5%, 30 years
Down payment $40,000, so the loan is $360,000. Principal and interest come to $2,275.44 a month. Property tax of $4,800 a year adds $400, insurance of $1,800 a year adds $150, and PMI at 0.5% a year on a $360,000 loan adds another $150. The full payment is $2,975.44 a month — about $700 more than the loan payment alone. Over 30 years the interest on this loan totals $459,160.16.
Same home with 20% down
With $80,000 down the loan is $320,000, principal and interest fall to $2,022.62, and PMI disappears entirely. Taxes and insurance stay the same ($400 + $150), so the full payment is $2,572.62 a month — $402.82 a month less ($4,833.84 a year) than the 10%-down version. That is the real cost of a small down payment: a bigger loan, plus PMI, every single month.
How to estimate your taxes and insurance
Property tax: multiply the home price by your county’s tax rate. US averages run about 0.9%–1.2% a year, but the range is wide — under 0.3% in Hawaii, over 2% in New Jersey and Illinois. Check the county assessor’s site for the exact rate on the address you are buying. Homeowner’s insurance: $1,500–$2,500 a year is typical for a mid-priced home; get a real quote, because wildfire, flood and hurricane zones cost far more, and flood insurance is a separate policy. Try the calculator above with your own numbers — it is the same maths lenders use.
Frequently asked questions
What is included in a mortgage payment with taxes and insurance?
A full payment (PITI) is principal, interest, property tax and homeowner’s insurance. Taxes and insurance are collected monthly into escrow. Under 20% down, PMI is added; HOA dues are a fifth cost where they apply.
How much are property taxes and insurance on a mortgage?
Property tax averages roughly 0.9% to 1.2% of the home price per year in the US, but rates vary widely by state — under 0.3% in Hawaii, over 2% in New Jersey and Illinois. Homeowner’s insurance is typically $1,500 to $2,500 a year for a mid-priced home.
Can I avoid PMI?
Yes — put 20% down on a conventional loan. FHA loans charge MIP instead of PMI, and VA loans have no monthly mortgage insurance at all. On a conventional loan, PMI usually drops off once you reach 20% equity.
Compare Conventional, FHA and VA loans, see the full amortization schedule, and check how much house you can afford.