Free Mortgage Calculator with Taxes and Insurance
Estimate your monthly mortgage payment, including principal, interest, property taxes, and home insurance. Plan your home buying journey with confidence.
Mortgage Calculator
Enter your home details below to calculate your monthly mortgage payment.
$2,522.62
| Loan amount | $320,000.00 |
|---|---|
| Monthly principal & interest | $2,022.62 |
| Monthly property tax | $300.00 |
| Monthly home insurance | $200.00 |
| Number of payments | 360 |
| Total interest paid | $408,142.36 |
| Total of all payments | $908,142.36 |
This is an estimate. Your actual payment may vary based on your lender and other factors.
We don't store your inputs. No sign-up required.
Every calculator here is built on the same amortization math lenders use. Figures on this page are checked against published guidance from the Consumer Financial Protection Bureau and Freddie Mac's Primary Mortgage Market Survey. More about who we are.
Suzon Mahmud
Suzon Mahmud is a consumer-finance writer covering mortgages and home buying.
Estimates for information only, not financial advice. Every figure here is illustrative and depends on the inputs you supply. Confirm your numbers with a licensed lender before deciding. See our full disclaimer.
Your Estimated Monthly Payment
The calculator above returns one headline figure — your total monthly payment — then splits it into the parts your lender actually collects: principal and interest, property tax, homeowners insurance, and, where they apply, PMI and HOA dues. Principal and interest is the only part fixed by your loan contract; the rest can drift upward year to year as tax assessments and premiums change.
On a $400,000 home with 20% down at an illustrative 6.5% over 30 years, principal and interest is about $2,023 a month. Adding $3,600 of annual property tax and $2,400 of insurance pushes the real payment to roughly $2,523 — a $500 gap that catches many first-time buyers by surprise.
What Is a Mortgage Calculator?
A mortgage calculator is a tool that estimates your monthly home loan payment from five inputs: the home price, your down payment, the interest rate, the loan term, and your annual property tax and insurance costs. It converts those figures into a single monthly number and shows how much of that total is interest rather than principal.
It is most useful for three groups: first-time buyers working out what a listing price really costs each month, existing homeowners testing whether refinancing or a shorter term is worth it, and anyone comparing two homes where the cheaper house sits in a higher-tax county. It is a planning tool, not a loan offer — a lender's underwriting also weighs your credit history, employment and existing debts.
Scroll back up to the calculator to run your own numbers. Nothing is saved and no sign-up is needed.
How Is Your Mortgage Payment Calculated?
Your monthly mortgage payment is built from up to six components, each explained below.
Principal and interest are worked out with the standard amortization formula, the same one lenders use:
M = P × [ r(1+r)n ] / [ (1+r)n − 1 ]
where M is the monthly principal-and-interest payment, P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12).
For a $320,000 loan at 6.5% over 30 years: r = 0.065 ÷ 12 = 0.005417 and n = 360. Run those through the formula and M works out at about $2,023. Your lender then adds the escrow items below.
Principal
The principal is the amount you actually borrow — the home price minus your down payment. On a $400,000 home with $80,000 down, the principal is $320,000. Each monthly payment chips away at this balance, and because interest is charged on whatever principal remains, every extra dollar you pay toward it reduces all the interest that would have accrued afterwards.
Interest
Interest is what the lender charges for the loan, quoted as an annual percentage rate. The calculator divides it by twelve to get a monthly rate. Small rate differences compound dramatically over 30 years: on a $320,000 loan, moving from 6.5% to 6.0% cuts the monthly payment by roughly $104 and saves more than $37,000 across the full term. Always compare the APR, which folds in lender fees, rather than the headline rate.
Property Taxes and Homeowners Insurance
These two are collected by your lender alongside principal and interest, and together they are what separates a realistic payment estimate from a principal-and-interest-only one. Both are covered in detail in the next section.
PMI (Private Mortgage Insurance)
PMI is normally required on conventional loans when your down payment is below 20%. It protects the lender rather than you, and generally costs about 0.3% to 1.5% of the loan each year — on a $320,000 loan, roughly $80 to $400 a month. Once you reach 20% equity you can usually request cancellation, and most conventional loans drop it automatically at 22%. Note that FHA mortgage insurance follows different rules and often lasts the life of the loan.
HOA Fees
If the property sits in a homeowners association, condominium or planned community, monthly dues cover shared maintenance and amenities. These typically run from $100 to $700 a month and are not part of your mortgage — you pay the association directly — but lenders count them when assessing what you can afford, so include them in your own budget.
How Taxes and Insurance Add to Your Monthly Payment
Principal and interest are only part of what you pay the lender each month. Property taxes and homeowners insurance are usually collected with them, which is why a principal-and-interest-only calculator can understate the real figure substantially.
Property taxes
Property tax is set by your county or municipality and based on the assessed value of the home. The mechanism is the same everywhere: a local authority assesses your property, applies its own rate, and bills you annually or semi-annually. The amount, however, is entirely local — two identical houses in neighbouring counties can carry very different bills, and rates are revised over time. Enter the annual figure for the specific property you are considering, and the calculator divides it across twelve months, which is how your lender collects it through escrow.
You can find the real number for an address on the county assessor's or treasurer's website, or on the listing itself, which usually states the most recent annual tax. Do not reuse the seller's figure without checking: many areas reassess on sale, so your bill may differ from theirs.
Homeowners insurance
Lenders require homeowners insurance for as long as you have a mortgage. Premiums vary with location, construction, coverage level and claims history, and have risen sharply in regions exposed to storms, wildfire or flood. Standard policies typically exclude flood, which is bought separately through the National Flood Insurance Program.
Because premiums are quoted per property and per applicant, the only reliable figure is a real quote for the home you intend to buy. Get one before you commit to a price — in high-risk areas the premium can be large enough to change what you can afford.
How escrow bundles them
Rather than leaving you to save for a once-a-year bill, most lenders collect one twelfth of your annual tax and insurance with each monthly payment and hold it in an escrow account, then pay the bills on your behalf when they fall due. That is why the total is often called PITI — principal, interest, taxes and insurance.
One consequence matters for budgeting: the principal-and-interest part of a fixed-rate loan never changes, but the escrow part can be recalculated every year. If your assessment or your premium rises, your monthly payment rises with it even though your interest rate has not moved.
What this calculator includes and excludes
Included: principal, interest, and the monthly share of the annual property tax and homeowners insurance figures you enter — so the headline result reflects what you would actually pay your servicer.
Excluded: HOA or condominium dues, which you pay the association directly; PMI, unless your down payment is below the threshold that triggers it; and one-off costs such as closing costs and the escrow cushion. Local transfer taxes and any special assessments are also outside the tool.
Tax and insurance figures are yours to supply. We do not look up local tax rates or quote premiums, because both depend on the exact address, the property and your insurer — there is no national figure that would be meaningful for your estimate. For impartial guidance on what lenders collect and why, see the CFPB's owning a home resources.
Mortgage Payment by Home Price
The table below shows monthly principal and interest across a range of home prices, all assuming 20% down, a 30-year term and an illustrative 6.5% interest rate. Property tax, insurance, PMI and HOA dues are not included, so your real payment will be higher.
| Home price | 20% down | Loan amount | Monthly P&I | Total interest (30 yrs) |
|---|---|---|---|---|
| $200,000 | $40,000 | $160,000 | $1,011 | $204,071 |
| $300,000 | $60,000 | $240,000 | $1,517 | $306,107 |
| $400,000 | $80,000 | $320,000 | $2,023 | $408,142 |
| $500,000 | $100,000 | $400,000 | $2,528 | $510,178 |
| $600,000 | $120,000 | $480,000 | $3,034 | $612,213 |
| $800,000 | $160,000 | $640,000 | $4,045 | $816,285 |
These figures are illustrative. They assume one fixed rate for every price point, which is not how real pricing works — your rate depends on credit score, loan size, property type and the day you lock. Use the calculator with your own rate for a figure that reflects your situation.
How Much House Can I Afford?
Lenders lean on two ratios, usually summarized as the 28/36 rule. To run them against your own income, debts and down payment, use the home affordability calculator:
- 28% front-end ratio — your total housing payment (principal, interest, taxes, insurance, PMI and HOA) should stay under 28% of gross monthly income.
- 36% back-end ratio — all your monthly debt payments combined, including the mortgage, car loans, student loans and minimum card payments, should stay under 36%.
That second figure is your debt-to-income ratio (DTI), and it is often what decides an application. Many lenders will stretch beyond 36% — conventional loans sometimes reach 45% to 50% with strong credit and reserves — but approval and affordability are not the same thing.
A worked example on a $90,000 salary
Gross monthly income is $90,000 ÷ 12 = $7,500.
- 28% of $7,500 = $2,100 available for the full housing payment.
- 36% of $7,500 = $2,700 available for all debt payments.
- Suppose a $400 car payment and $150 in student loans: $2,700 − $550 leaves $2,150, so the 28% limit of $2,100 is the binding constraint.
- Set aside roughly $500 for tax and insurance and about $1,600 remains for principal and interest — which at 6.5% over 30 years supports a loan near $253,000, or a home around $316,000 with 20% down.
Clearing a car loan before applying can lift your borrowing power more than saving the same amount toward a down payment, because it frees room inside the 36% ceiling. The CFPB's loan options guide explains how different programs treat DTI.
Amortization Schedule Explained
An amortization schedule is a payment-by-payment table showing how each installment divides between interest and principal, and what balance remains. The monthly total never changes on a fixed-rate loan, but the split shifts steadily over time. To build the complete schedule for your own loan — every payment, with extra payments and a payoff date — use the amortization calculator.
Here are the first twelve payments on a $320,000 loan at 6.5% over 30 years (monthly payment $2,023):
| Payment | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $1,733 | $290 | $319,710 |
| 2 | $1,732 | $291 | $319,419 |
| 3 | $1,730 | $293 | $319,126 |
| 4 | $1,729 | $294 | $318,832 |
| 5 | $1,727 | $296 | $318,536 |
| 6 | $1,725 | $298 | $318,238 |
| 7 | $1,724 | $299 | $317,939 |
| 8 | $1,722 | $301 | $317,638 |
| 9 | $1,721 | $302 | $317,336 |
| 10 | $1,719 | $304 | $317,032 |
| 11 | $1,717 | $306 | $316,726 |
| 12 | $1,716 | $307 | $316,419 |
After a full year of payments totalling about $24,276, the balance has fallen by only $3,581. The rest — nearly $20,700 — went to interest.
Why early payments are mostly interest: interest is charged on the balance still outstanding, and at the start that balance is at its largest. In month one, $1,733 of the $2,023 payment covers interest on $320,000. As the balance shrinks, the interest portion shrinks with it and more of each fixed payment attacks the principal. By roughly year 21 the split finally tips in favor of principal. This is also why overpaying early is so effective: a single extra $1,000 in year one removes interest that would otherwise accrue for 29 more years.
If that is the lever you want to pull, see what extra payments save you — the extra payment calculator handles both a monthly top-up and a biweekly schedule, and gives you the exact payoff date for each.
15-Year vs 30-Year Mortgage
Term length is the single biggest lever on your payment. Both rows below use the same $320,000 loan; the 15-year rate is shown 0.75 points lower, which reflects the usual market discount for shorter terms.
| 15-year at 5.75% | 30-year at 6.5% | |
|---|---|---|
| Monthly principal & interest | $2,658 | $2,023 |
| Number of payments | 180 | 360 |
| Total interest paid | $158,477 | $408,142 |
| Total of all payments | $478,477 | $728,142 |
| Equity after 5 years | Roughly 35% of the loan repaid | Roughly 8% of the loan repaid |
The 15-year term costs $635 more each month but saves about $249,700 in interest and clears the debt fifteen years sooner.
The verdict depends on cash flow versus total cost. If that extra $635 would otherwise sit unused, the 15-year loan is straightforwardly cheaper. If it would squeeze your emergency fund, stop you capturing an employer retirement match, or leave nothing for repairs, the 30-year loan is the safer structure — and you can always overpay voluntarily, keeping the option to fall back to the lower required payment in a hard month. Choosing the shorter term removes that flexibility permanently.
How to Lower Your Monthly Mortgage Payment
- Put more down. Every $10,000 of extra down payment cuts about $63 a month at 6.5% over 30 years — and reaching 20% removes PMI as well.
- Shop for a better rate. Quotes from several lenders on the same day are directly comparable. Half a point off a $320,000 loan saves roughly $104 a month.
- Choose a longer term. Moving from 15 to 30 years lowers the required payment substantially, at the cost of far more total interest.
- Challenge your property tax assessment. If comparable homes are assessed lower, an appeal can cut the escrow portion of your payment for years.
- Remove PMI at 20% equity. Ask in writing once you cross the threshold, whether through payments or rising value; do not wait for automatic cancellation.
- Re-shop your insurance yearly. Premiums have risen fast, and loyalty is rarely rewarded. Bundling or raising the deductible can help.
- Refinance later. If rates fall meaningfully below your own, refinancing can reset the payment — but weigh closing costs and the restarted amortization clock.
Our guide on understanding interest rates explains how lenders price these offers, and the first-time home buyer guide walks through closing costs.
Escrow, Closing Costs and the Money This Calculator Doesn't Show
The figure at the top of this page is your recurring monthly cost. Two other categories of money matter just as much when you buy, and neither appears in a standard mortgage payment calculator.
How escrow actually works
Most lenders do not trust borrowers to save for a once-a-year tax bill, so they collect one twelfth of your annual property tax and insurance alongside each payment and hold it in an escrow account. When the bills arrive, the lender pays them for you. This is why your total payment is often described as PITI — principal, interest, taxes and insurance.
Two consequences surprise new homeowners. First, lenders usually require a cushion of two to three months of escrow items collected at closing, so your upfront cash requirement is higher than the down payment alone. Second, escrow is re-analyzed every year: if your county raises its assessment or your insurer raises premiums, your monthly payment rises even though your interest rate never changed. A payment that was $2,523 can become $2,700 the following year through escrow alone. Budget for that drift rather than assuming the first year's figure is permanent.
Closing costs
Closing costs typically run 2% to 5% of the loan amount — on a $320,000 loan, roughly $6,400 to $16,000, paid once at completion. They cover lender origination fees, appraisal, credit report, title search and title insurance, recording fees, prepaid interest and the escrow cushion described above. Your lender must provide a Loan Estimate within three business days of your application and a Closing Disclosure at least three days before closing, which makes these documents directly comparable between lenders. The CFPB explains how to read them in its home-buying guide.
Ongoing costs beyond the mortgage
Owning is not renting with a different payment. A common planning figure is 1% to 2% of the home's value each year for maintenance and repairs — $4,000 to $8,000 on a $400,000 house — covering everything from a failed water heater to a roof. Add utilities, which are often higher than in an apartment, and any special assessments an HOA may levy. None of this is in your mortgage payment, and ignoring it is the most common reason a technically affordable house becomes financially stressful.
A practical test: after your full housing payment and a realistic maintenance allowance, can you still save each month? If not, the house is at the edge of affordability regardless of what a lender approves. Our emergency fund guide covers the reserve worth holding before you buy.
Our Methodology
Principal and interest are calculated with the standard fixed-rate amortization formula shown above — the same one used across the lending industry — applied monthly with no rounding until the final figure is displayed. The tool assumes a fixed rate for the whole term and equal monthly payments.
Property tax, homeowners insurance, PMI and HOA dues are estimates you supply; we do not look up local tax rates or quote insurance, because both vary by address, property and provider. Rate examples on this page (6.5% for 30 years, 5.75% for 15 years) are illustrative figures chosen to sit near recent averages published in Freddie Mac's Primary Mortgage Market Survey — they are not offers and not predictions.
Adjustable-rate mortgages, interest-only periods, balloon payments, mortgage points, temporary buydowns and biweekly payment plans are outside the scope of this calculator. For definitions of loan terms, the CFPB's mortgage resources are a reliable, non-commercial reference.
How to Use This Mortgage Calculator With Taxes and Insurance
Enter your home price, down payment, loan term and interest rate, then add your yearly property tax and home insurance. The results card above updates as you type, showing your total monthly payment and how it splits between principal & interest, taxes and insurance. Open "View Payment Breakdown" for your loan amount, number of payments and the total interest you would pay over the full term.
Read Full GuideFrequently Asked Questions
With 20% down ($60,000) on a $300,000 home, you borrow $240,000. At an illustrative 6.5% rate over 30 years, principal and interest come to roughly $1,517 a month. Property taxes, homeowners insurance and any HOA dues are added on top, so the full payment is usually several hundred dollars higher. Enter your own figures in the calculator above for a closer estimate.
Private mortgage insurance protects the lender, not you, and is normally required on conventional loans when you put down less than 20%. It typically costs about 0.3% to 1.5% of the loan each year. You can avoid it by putting 20% down, and on most conventional loans you can ask for it to be removed once you reach 20% equity.
Principal and interest use the standard amortization formula M = P x [ r(1+r)^n ] / [ (1+r)^n - 1 ], where P is the loan amount, r is the monthly interest rate and n is the total number of payments. Your lender then adds one twelfth of your annual property tax and insurance, plus PMI and HOA dues if they apply.
An amortization schedule lists every scheduled payment and splits it into interest, principal and the remaining balance. Because interest is charged on the outstanding balance, early payments are mostly interest and later payments are mostly principal, even though the total payment stays the same.
A common guideline is the 28/36 rule: keep your housing payment under 28% of gross monthly income and all debt payments under 36%. On a $90,000 salary, that is about $2,100 for housing and $2,700 for total debt each month. Your credit score, down payment and existing debts all affect what a lender will actually approve.
It depends on whether cash flow or total cost matters more to you. A 15-year loan has a much higher monthly payment but can save well over a hundred thousand dollars in interest and builds equity far faster. A 30-year loan is easier to afford each month and leaves room for other goals such as retirement saving or an emergency fund.
Many conventional loans ask for 5-20% of the home price, while some government-backed programs allow as little as 3-3.5%. Putting down 20% lets you avoid private mortgage insurance (PMI) and lowers your monthly payment.
This one does. It includes property tax and homeowners insurance alongside principal and interest, unlike a basic principal-and-interest-only calculator, which can understate the real payment by hundreds of dollars a month. It takes the annual tax and insurance figures you enter and divides them across twelve months, so the total reflects what you would actually pay your servicer. It still leaves out HOA or condominium dues, which you pay the association directly, and PMI unless your down payment is low enough to trigger it.
Add the four parts — principal and interest on the loan, plus the monthly share of property taxes and homeowners insurance. Lenders usually collect the tax and insurance portions through escrow, so your payment to the servicer includes them. Enter your numbers in the calculator above to see the total.
They depend entirely on where you live and what you buy — property tax is set by your local assessment and rate, and insurance by your coverage and the home's risk. Enter local figures for your estimate; there is no single national number.
Once your loan's principal and interest are fixed, they don't change — but taxes and insurance can each year, and an escrow shortage can raise the amount collected, so your total payment can move.
Related Calculators
Every tool on the site is free and needs no sign-up:
- Loan Calculator — monthly payments and total interest on personal, auto and student loans.
- Debt Payoff Calculator — how fast you can clear a balance and what an extra payment saves.
- Car Payment Calculator — monthly cost of a vehicle including down payment and trade-in.
- Paycheck Calculator — your take-home pay after federal tax, FICA and state tax.
- Compound Interest Calculator — how a balance grows when interest earns interest.
- Amortization Calculator — the full payment-by-payment schedule for any fixed-rate loan.
- Home Affordability Calculator — how much house your income, debts and down payment support.
- Down Payment Calculator — what a given percentage costs in cash and whether it clears the 20% PMI line.
- Net Worth Calculator — a house sits on both sides of the ledger: market value as an asset, the mortgage as a debt.
- All Calculators — the complete list in one place.
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