Mortgage Calculator — Monthly Payment with Taxes & Insurance

Enter home price, down payment, and rate — get a full monthly payment breakdown including taxes, insurance, and PMI. Adjust any field and results update instantly.

How the Mortgage Calculator Works

  • Your monthly payment has four components: principal and interest (P&I), property taxes, homeowners insurance, and PMI if your down payment is below 20%. The P&I portion is calculated using the standard amortization formula and stays fixed for the life of a fixed-rate loan.
  • Property taxes vary widely by location. The calculator starts with a 1.2% placeholder, not a local quote or national benchmark. Check your county assessor's website or a recent tax bill and replace the default for a more useful estimate.
  • PMI (private mortgage insurance) is required on conventional loans when LTV exceeds 80%. It typically costs 0.2%–2% of the loan amount annually and is automatically removed when your balance reaches 78% of the original purchase price.

Calculation details

Methodology

Principal and interest use the standard fixed-rate amortization formula: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. The calculator then adds monthly property tax, homeowners insurance, and estimated mortgage insurance to show a fuller housing payment.

Assumptions and limitations

  • The interest rate remains fixed for the selected term; adjustable-rate changes are not modeled here.
  • Property tax, insurance, and PMI are estimates. Replace defaults with a tax bill, insurance quote, and lender-provided mortgage insurance figure when available.
  • The result does not include closing costs, lender fees, maintenance, utilities, or future changes to taxes and insurance.

Worked example: $400,000 home with 20% down

  • Home price: $400,000; down payment: $80,000; loan amount: $320,000
  • 30-year fixed rate: 6.50%
  • Property tax: 1.20% per year; homeowners insurance: $1,440 per year

Estimated payment: about $2,543 per month

Principal and interest are about $2,023, property tax is $400, and insurance is $120. No PMI is included at 20% down. Actual escrow and lender figures can differ.

Official sources

Frequently Asked Questions

What is the monthly payment on a $300,000 mortgage?

At 6.5% interest on a 30-year fixed mortgage, the principal and interest payment on a $300,000 loan is approximately $1,896/month. Add property taxes (typically $275–$400/month), homeowners insurance (~$100–$150/month), and PMI if applicable (~$100–$200/month if less than 20% down). Total monthly cost typically runs $2,300–$2,700 depending on your location and down payment.

Does the mortgage calculator include taxes and insurance?

Yes — this calculator includes property taxes (based on a percentage of home value you can adjust), homeowners insurance (entered as an annual dollar amount), and PMI if your down payment is below 20%. Click 'Show taxes & insurance' to set your local rates. The default tax rate is 1.2% annually — adjust it to match your county's rate for a more accurate estimate.

How much do I need to make to afford a $400,000 house?

At 6.5% on a 30-year loan with 20% down, the P&I payment on a $320,000 loan is about $2,023/month. Add taxes and insurance and total PITI is roughly $2,500–$2,900/month. Most lenders want housing costs below 28–31% of gross monthly income, which means you'd need $8,000–$10,000/month gross ($96k–$120k annual income) to qualify comfortably.

What happens to my payment if I put less than 20% down?

Two things: your loan amount increases (higher P&I), and PMI is added to your monthly payment. On a $400,000 home with 10% down ($360,000 loan at 6.5%), P&I is about $2,276/month plus approximately $150–$200/month in PMI — roughly $400–$500 more per month than putting 20% down. PMI is removed automatically when your balance reaches 78% of the original purchase price.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage has a higher monthly payment but you pay roughly half the total interest and own your home in half the time. A 30-year mortgage has a lower payment but costs significantly more in total interest. Most lenders offer 15-year rates 0.5%–0.75% lower than 30-year rates, which amplifies the savings. Use the Loan Compare calculator to see the exact difference for your loan amount.

How to use this estimate

This calculator is an educational planning tool. Results are based on the figures and assumptions entered by the reader, use standard mortgage mathematics, and are not a loan offer, approval, or substitute for a lender's Loan Estimate. Taxes, insurance, fees, mortgage insurance, and available rates vary by borrower, property, lender, and location.

Review the assumptions, compare more than one scenario, and confirm the final numbers with a licensed mortgage professional before making a financial commitment.