Mortgage Calculator with Taxes & Insurance
Estimate your total monthly mortgage payment, including principal, interest, property taxes, and homeowners insurance (PITI).
30 Years
20 Years
15 Years
10 Years
Estimated Monthly Payment
Principal & Interest
Property Tax
Home Insurance
Loan Amount
Understanding Your Mortgage Calculation
Purchasing a home is one of the most significant financial decisions you will make. While the listing price gives you a general idea of the cost, your actual monthly obligation involves several components, often referred to as PITI (Principal, Interest, Taxes, and Insurance).
This Mortgage Calculator helps you determine exactly what you can afford by breaking down these costs based on current market variables.
The 4 Key Components of Your Payment (PITI)
- Principal: The portion of your payment that goes directly toward paying down the loan balance. In the early years of a 30-year mortgage, this amount is small compared to interest.
- Interest: The cost of borrowing money from your lender. This is calculated based on your Annual Percentage Rate (APR).
- Taxes: Property taxes assessed by your local government. These are usually collected by the lender in an escrow account and paid annually on your behalf.
- Insurance: Homeowners insurance protects against damage and liability. Like taxes, this is typically paid monthly into an escrow account.
How Interest Rates Affect Buying Power
Even a small change in interest rates can drastically alter your monthly payment. For example, on a $300,000 loan, the difference between a 6% rate and a 7% rate can increase your monthly payment by roughly $200. Using this calculator allows you to stress-test your budget against rate fluctuations.
Example Calculation
Let's say you want to buy a home for $400,000 with a 20% down payment ($80,000). This leaves a loan amount of $320,000.
If you secure a 30-year fixed-rate mortgage at 6.5%:
- Principal & Interest: ~$2,022 per month
- Property Taxes (est. 1.2%): $400 per month
- Insurance (est.): $100 per month
- Total Estimated Payment: ~$2,522 per month
Why Use This Tool?
Unlike simple loan calculators, this tool accounts for the "hidden" costs of homeownership—taxes and insurance. By inputting accurate estimates for your local property taxes and insurance premiums, you get a realistic view of your monthly financial commitment, preventing "payment shock" after closing.