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Mortgage Calculator with Taxes and Insurance
See your true monthly housing cost with this free mortgage calculator with taxes and insurance. Enter the home price, down payment, interest rate, loan term, annual property tax, and homeowners insurance to get a full PITI breakdown: principal and interest, property tax, insurance, plus PMI when your down payment is under 20 percent. All math runs in your browser. This is a planning estimate, not financial advice.
How to use
- Enter the home price and your down payment amount.
- Enter the annual interest rate and choose the loan term.
- Enter your yearly property tax and homeowners insurance premium.
- Click Calculate to see the full monthly PITI breakdown.
A worked example: a $400,000 home with 10 percent down
Price $400,000, down payment $40,000, loan $360,000 at 6.5 percent for 30 years. The monthly rate is 0.0054167 over 360 payments, giving principal and interest of about $2,276.
Add property tax at 1.1 percent of the price ($4,400 a year, or $367 a month), homeowners insurance of $1,800 a year ($150 a month), and PMI at 0.5 percent of the loan ($1,800 a year, or $150 a month). The true monthly cost is about $2,943, nearly $670 more than principal and interest alone. That gap is exactly what this calculator reveals.
What PITI leaves out of your budget
PITI covers the lender's view, not the full cost of owning. Budget separately for HOA dues if they apply, utilities, and maintenance. A common rule of thumb is 1 percent of the home's value per year for maintenance, so $4,000 a year on a $400,000 home.
Also remember closing costs, typically 2 to 5 percent of the price, due at purchase. None of these appear in a monthly payment quote, but they are real money out of your pocket.
Frequently asked questions
What does PITI mean?
PITI stands for principal, interest, taxes, and insurance: the four parts of a typical monthly mortgage payment. Principal pays down your loan balance, interest is the lender's charge, and taxes and insurance are usually collected monthly into an escrow account and paid on your behalf.
How is the monthly payment calculated?
Principal and interest use the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly rate, and n is the number of payments. For example, a $300,000 loan at 4.5 percent for 30 years gives r = 0.00375 and n = 360, for monthly principal and interest of $1,520.06. Tax and insurance are simply their annual amounts divided by 12.
When do I pay PMI, and when does it stop?
Private mortgage insurance is usually required when your down payment is under 20 percent. It protects the lender, not you. You can typically request cancellation once you reach 20 percent equity, and lenders must drop it automatically at 78 percent loan-to-value on the original schedule.
What is escrow?
Escrow is the account your loan servicer uses to pay property tax and homeowners insurance for you. Each month, one twelfth of the annual bills is added to your mortgage payment and held until the bills come due. That is why lenders quote PITI rather than principal and interest alone.
Do property tax and insurance stay fixed?
No. Tax assessments can rise with home values, and insurance premiums change yearly. Your principal and interest stay fixed on a fixed-rate loan, but the tax and insurance portions of PITI can move, which is why payments change slightly year to year.
Is a bigger down payment always better?
It lowers your loan amount and monthly payment, and reaching 20 percent avoids PMI entirely, which can save hundreds per month. The tradeoff is less cash left for emergencies and moving costs, so balance it against keeping a reserve fund.
Should I choose a 15-year or 30-year term?
A 15-year term has much higher monthly payments but dramatically less total interest, often saving hundreds of thousands over the life of the loan. A 30-year term keeps payments affordable and flexible. Many buyers take the 30-year and make extra principal payments when they can.
Is this financial advice?
No. This calculator gives planning estimates based on the numbers you enter. Actual offers depend on your credit, lender fees, and local tax rates. Talk to a licensed mortgage professional before making decisions.