Mortgage Calculator With Taxes, Insurance & PMI

How the monthly payment is calculated

A mortgage payment is not one number, it is a stack. Lenders quote the principal and interest piece, but the amount withdrawn from your account each month usually includes escrow for property tax and homeowners insurance — and, below a 20% down payment, private mortgage insurance.

The principal and interest portion comes from the standard amortization formula, where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of payments:

Every payment splits into interest on the remaining balance and principal that reduces it. Early on, interest dominates: on that same loan the first payment is $1,950 interest and only $325 principal. By year 25 the ratio has flipped. That is why extra payments made in the first decade are worth far more than the same dollars paid in year 20 — and why the table above is the most useful part of this page.

Taxes, insurance, HOA dues and PMI are added on top as flat monthly amounts. They do not amortize and they do not disappear when the loan is paid off — only PMI does, and only once your loan balance falls to 80% of the home's original value.

Property taxes, insurance and HOA dues

Property tax is set by your county or municipality, not your lender. It is usually quoted as an annual rate per $100 of assessed value, which is close enough to a percentage of price for estimating. Effective rates in 2026 run from roughly 0.3% in parts of Colorado and Hawaii to over 2% in Texas, Illinois and New Jersey. Our default of 1.1% is a national midpoint — replace it with your county's actual rate, because on a $450,000 home the difference between 0.5% and 2.2% is $637 a month.

Homeowners insurance is quoted annually, and the monthly figure is simply one twelfth of the premium. It rises with rebuild cost, roof age and claims history; in Florida and coastal Louisiana, premiums have doubled in five years. If you are buying a condo, the HOA master policy may cover the building exterior, which lowers your own premium but raises the HOA dues.

HOA dues are monthly and are collected with your mortgage payment if the association is on the lender's list. They are not optional and they survive payoff, so treat them as part of the cost of the home rather than the cost of the loan. A $350 HOA on a $400,000 house adds more to the monthly payment than a full percentage point of interest.

PMI: what it costs and when it stops

Private mortgage insurance protects the lender, not you, when the down payment is below 20%. It typically costs 0.3%–1.5% of the loan amount per year, which on a $360,000 loan is $90–$450 a month for a benefit you cannot claim.

The good news is that PMI is temporary. Under the Homeowners Protection Act, servicers must cancel it automatically once your balance reaches 78% of the home's original value, and you can request cancellation at 80%. At 6.5% on a $450,000 home with 10% down, that automatic date lands around year nine — unless you pay down faster or the home appreciates enough to support an appraisal-based removal.

This calculator models PMI month by month and drops it the moment the balance crosses 80% LTV, which is why the PMI line in the payment breakdown disappears partway through the schedule. If your down payment is 20% or more, set the PMI rate to 0.