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Ask a first-time homebuyer what their monthly mortgage payment will be and you will usually hear a single number: the principal-and-interest figure from a basic loan calculator. Then the first statement arrives and the amount due is several hundred dollars higher. Nothing went wrong with the arithmetic. The basic calculator simply left out three or four costs that most homeowners pay every single month. Lenders bundle the complete monthly payment under one short acronym: PITI.
The free mortgage calculator with taxes and insurance above adds up the whole picture — principal, interest, property taxes, and homeowners insurance, with room for private mortgage insurance (PMI) and homeowners association (HOA) dues when they apply. Enter your numbers once and you will see not just the total, but exactly how much of each dollar goes where. Below the calculator you will find a plain-English guide to each PITI component, the exact formulas with two fully worked calculations, two realistic buying scenarios, and the five mistakes that cause the most budget surprises.
The calculator is designed to take less than a minute. Work through the eight fields from top to bottom, then press Calculate:
Press Calculate to see your total monthly PITI payment in large type, with a line-by-line breakdown of principal and interest, property tax, home insurance, PMI, and HOA underneath. Reset restores the default example so you can start over. A useful habit: run the numbers three times — once with your best estimates, once with taxes and insurance 15 percent higher, and once with a rate a half-point above your quote. If the payment still fits your budget in the pessimistic case, you have a comfortable margin.
PITI is the lending industry’s shorthand for the four costs that make up a standard mortgage payment: principal, interest, taxes, and insurance. Two more items — PMI and HOA dues — join the picture for many buyers, and almost all of it flows through a special account called escrow. Understanding each piece is the difference between guessing at affordability and knowing it.
Principal is the portion of your payment that actually reduces your loan balance. In the early years of a 30-year mortgage, principal is the smaller slice of each payment; by the final years, it dominates. Every dollar of principal you pay builds your equity — the share of the home you truly own.
Interest is the lender’s charge for letting you borrow hundreds of thousands of dollars. It is calculated each month on your remaining balance, which is why interest eats most of the payment early on and shrinks over time. Even a quarter-point difference in rate moves a 30-year payment by tens of dollars a month and tens of thousands over the life of the loan.
Taxes are property taxes levied by your county, city, and school district. They are quoted annually but almost always collected monthly: your loan servicer divides the yearly bill by 12 and adds it to your payment. Tax rates vary enormously — under 0.5 percent of home value in some states, over 2 percent in others — so two identical houses can have wildly different PITI payments in different counties.
Insurance means homeowners insurance (also called hazard insurance), which covers damage to the dwelling from fire, storms, theft, and other listed perils. Your lender requires it for as long as you carry the mortgage, because the house is the collateral for the loan. Premiums depend on location, construction, replacement cost, deductible, and claims history. Like taxes, the annual premium is normally split into 12 monthly pieces.
PMI — private mortgage insurance — applies when your down payment is less than 20 percent on a conventional loan. It protects the lender, not you, against default, and typically costs between 0.3 and 1.5 percent of the loan amount per year. The good news: PMI is not forever. You can generally request cancellation once you reach 20 percent equity, and the servicer must drop it automatically at 22 percent equity on most loans.
HOA dues are monthly fees charged by a homeowners association for shared upkeep — landscaping, building insurance, amenities, reserves. They are not part of the mortgage itself and are usually paid separately, but no honest housing budget ignores them. HOA fees can rise yearly and associations can levy one-time special assessments for big repairs.
Escrow (also called an impound account) is the holding account your loan servicer uses to pay your taxes and insurance on your behalf. Each month, one-twelfth of the annual tax bill and one-twelfth of the insurance premium ride along inside your mortgage payment into escrow; the servicer then pays the county and the insurer when the bills come due. Once a year the servicer performs an escrow analysis: if taxes or premiums rose, you get a shortage notice and your monthly payment increases; if they fell, you may get a refund check. This is the number-one reason a supposedly fixed payment changes from year to year.
Why does the PITI framing matter so much? Because lenders qualify you on it. Debt-to-income ratios — the 28/36 guidelines behind most approvals — are computed with the full PITI payment, not principal and interest alone. Budget on PITI and your approval math and your real-life math finally agree.
The calculator runs four small formulas and adds the results. Here they are, so you can check any number by hand or in a spreadsheet:
Worked example 1. A $400,000 home with $80,000 down (20 percent) leaves a loan of P = $320,000. The rate is 6.5 percent annual over 30 years, so r = 0.065 ÷ 12 = 0.0054167 and n = 360. First compute (1 + r)n = (1.0054167)360 ≈ 6.9923. Then M = 320,000 × 0.0054167 × 6.9923 ÷ (6.9923 − 1) = 320,000 × 0.0054167 × 6.9923 ÷ 5.9923 ≈ $2,022.62. Monthly tax T = 4,800 ÷ 12 = $400.00. Monthly insurance I = 1,800 ÷ 12 = $150.00. There is no PMI (20 percent down) and no HOA. PITI = 2,022.62 + 400.00 + 150.00 = $2,572.62 per month. These are the calculator’s default values — press Calculate above and you will land on exactly this number.
Worked example 2. A $285,000 home with 10 percent down ($28,500) leaves P = $256,500. The rate is 7.0 percent over 30 years: r = 0.07 ÷ 12 = 0.0058333, n = 360, and (1.0058333)360 ≈ 8.1131. M = 256,500 × 0.0058333 × 8.1131 ÷ 7.1131 ≈ $1,706.60. Annual tax of $3,420 gives T = $285.00; annual insurance of $1,560 gives I = $130.00. With less than 20 percent down, PMI applies at $142.00 per month; HOA is $0. PITI = 1,706.60 + 285.00 + 130.00 + 142.00 = $2,263.60 per month. Notice that PMI alone adds $1,704 per year — reaching 20 percent equity and dropping PMI would cut this payment to $2,121.60.
Daniel and Priya have an accepted offer on a $350,000 townhouse. They can put 5 percent down — $17,500 — which leaves a loan of $332,500. Their lender quotes 6.75 percent on a 30-year fixed loan. The county’s effective tax rate suggests about $4,200 a year in property tax, their insurance quote is $1,900 a year, PMI is estimated at $165 a month, and there is no HOA.
Running the formula: r = 0.0675 ÷ 12 = 0.005625, n = 360, (1.005625)360 ≈ 7.5341. M = 332,500 × 0.005625 × 7.5341 ÷ 6.5341 ≈ $2,156.56. T = 4,200 ÷ 12 = $350.00. I = 1,900 ÷ 12 ≈ $158.33. Add PMI of $165.00 and the full PITI payment is 2,156.56 + 350.00 + 158.33 + 165.00 = $2,829.89 per month.
The lesson hits hard: a principal-and-interest-only calculator would have told the couple their payment is $2,156.56 — nearly $675 less than reality. Taxes, insurance, and PMI make up almost a quarter of the check they will actually write. Their plan is sound anyway: with normal amortization plus modest appreciation, they expect to cross 20 percent equity in about six to seven years, request PMI removal, and watch the payment drop to roughly $2,664.89. They also keep a small buffer fund, because the escrow analysis in year two could nudge taxes or insurance upward.
The Alvarez family is selling their starter home and buying a $525,000 four-bedroom, putting 25 percent down ($131,250) for a loan of $393,750. Their rate is 6.25 percent fixed for 30 years. Annual property tax runs about $6,300, insurance about $2,400, and the neighborhood HOA charges $85 a month. No PMI applies at 25 percent down.
The math: r = 0.0625 ÷ 12 = 0.00520833, n = 360, (1.00520833)360 ≈ 6.4894. M = 393,750 × 0.00520833 × 6.4894 ÷ 5.4894 ≈ $2,424.44. T = 6,300 ÷ 12 = $525.00. I = 2,400 ÷ 12 = $200.00. Add the $85.00 HOA and the total monthly housing cost is 2,424.44 + 525.00 + 200.00 + 85.00 = $3,234.44.
Two details matter here. First, the HOA is not escrowed — the family pays it directly to the association, separate from the mortgage statement, but it still counts in their housing budget and in the lender’s debt-to-income math. Second, HOA dues are the one component the association can raise with a board vote; the family checked five years of dues history and the reserve fund before offering, and they budget for 3 percent annual increases. Their larger down payment earns its keep twice: no PMI, and a smaller loan means less interest — about $479,000 in total interest over 30 years versus roughly $640,000 had they borrowed the same amount at only 10 percent down.
1. Budgeting on principal and interest alone. This is the classic error. A $2,000 P&I payment can easily be a $2,700 PITI payment once taxes and insurance join in. Lenders qualify you on PITI, so budgeting on P&I alone can leave you approved for a payment you cannot comfortably afford — or surprised at closing when the real number appears.
2. Using the seller’s old tax bill. In many states the assessor resets the taxable value to something near the purchase price after a sale. The seller who owned the home for 20 years may pay tax on a $180,000 assessment while you will pay on $400,000. Always estimate from the purchase price times the local effective rate, and confirm with the county assessor.
3. Treating PMI as permanent — or forgetting it entirely. Some buyers leave PMI out of their estimate and get a nasty surprise; others assume it lasts the whole loan and overestimate their long-term cost. Know both facts: PMI applies below 20 percent equity on conventional loans, and you can usually request removal at 20 percent equity with a good payment history, with automatic termination at 22 percent.
4. Ignoring HOA dues and special assessments. A $250 monthly HOA has the same budget impact as borrowing roughly $40,000 more at typical rates. Worse, associations can levy five-figure special assessments for roofs, siding, or elevators. Read the HOA budget, the reserve study, and the last two years of meeting minutes before you buy.
5. Never re-shopping insurance or reading the escrow analysis. Premiums creep up, and insurers rarely volunteer discounts. Shopping your homeowners policy every two to three years — and raising your deductible if your emergency fund allows — often saves hundreds annually. Likewise, open the escrow analysis letter every year: a shortage can be paid as a lump sum to keep your monthly payment flat instead of spread across 12 higher payments.
Once you know your PITI payment, these companion tools answer the natural follow-up questions. The Mortgage Calculator focuses on principal, interest, and lifetime cost. The House Affordability Calculator works backward from your income to a sensible price range. The Amortization Calculator shows every payment’s principal-versus-interest split. Considering a refi? Try the Refinance Calculator. On the fence about buying at all, the Rent vs Buy Calculator compares both paths, and the Down Payment Calculator helps you plan the cash you will need at closing.
This page provides a free mortgage calculator with taxes and insurance (PITI calculator) plus explanatory reference content. Inputs: home price (USD), down payment (USD), annual interest rate (percent), loan term (years), annual property tax (USD), annual homeowners insurance premium (USD), monthly PMI (USD), monthly HOA dues (USD). Outputs: total monthly PITI payment and an itemized breakdown (principal and interest, property tax, home insurance, PMI, HOA), plus loan amount and down-payment percentage. Formulas: monthly P&I M = P·r(1+r)^n/((1+r)^n−1) with r = annual rate/12 and n = years×12; monthly tax = annual tax/12; monthly insurance = annual premium/12; PITI = M + T + I + PMI + HOA. Default example: $400,000 price, $80,000 down, 6.5 percent, 30 years, $4,800 tax, $1,800 insurance → $2,572.62/month. Content is educational, not financial advice; figures exclude closing costs, utilities, and maintenance. Last updated: October 8, 2026.
Estimate your full monthly mortgage payment — principal, interest, property taxes, homeowners insurance, PMI and HOA — with this free PITI calculator, then use the formulas, worked examples and FAQs below to understand every dollar.
PITI stands for principal, interest, taxes, and insurance — the four standard components of a monthly mortgage payment. Principal reduces your loan balance, interest is the lender’s charge, property taxes go to your county and school district, and homeowners insurance protects the dwelling. Many buyers also pay PMI (private mortgage insurance) and HOA dues, so the true monthly housing cost is sometimes PITI plus those extras. Lenders use the full PITI figure when calculating your debt-to-income ratio.
In most cases, yes — at least at first. When your down payment is under 20 percent, lenders almost always require an escrow (impound) account that collects one-twelfth of your annual tax bill and insurance premium with each mortgage payment, then pays the county and insurer on your behalf. With 20 percent or more equity, many servicers let you waive escrow and pay those bills yourself, sometimes for a small fee. Either way, the taxes and insurance are still owed; escrow only changes how you pay them.
Start with the county assessor or tax collector website, which publishes the current bill and assessed value for any address. Then adjust: in many states the assessed value resets toward the purchase price after a sale, so multiply your offer price by the local effective tax rate (annual tax divided by market value for comparable homes) rather than trusting the seller’s old bill. Your lender’s early estimate and the listing agent’s figures are useful cross-checks, and new construction may be taxed on land value only until reassessed.
On a conventional loan you can generally request PMI cancellation once you reach 20 percent equity — through a combination of principal payments and home appreciation — provided your payments are current and the home still appraises at the needed value. Your servicer must automatically terminate PMI when the balance falls to 78 percent of the original value (22 percent equity). FHA loans follow different MIP rules, where mortgage insurance often lasts longer. Track your equity yearly; many homeowners pay PMI longer than necessary simply because they never ask.
With a fixed-rate mortgage, the principal-and-interest portion never changes — but the tax and insurance portions do. Counties reassess property values, tax rates move, and insurance premiums rise, and each change flows through your escrow account. Once a year your servicer performs an escrow analysis: if last year’s collections fell short, the shortage is typically spread over the next 12 payments, raising your monthly amount. Review the annual escrow statement carefully, and consider paying a shortage as a lump sum to keep your payment flat.
They protect different people. Homeowners insurance (hazard insurance) protects you — it pays to repair or rebuild your dwelling after covered events like fire, storms, or theft, and your lender requires it because the house secures the loan. PMI (private mortgage insurance) protects the lender — it covers the lender’s losses if you default, and it applies on conventional loans with less than 20 percent down. Both can appear inside one monthly payment, but only homeowners insurance benefits you directly.
Absolutely. HOA dues are not part of the mortgage payment itself — you usually pay them directly to the association — but they are a mandatory monthly housing cost, and lenders include them in your debt-to-income calculation. Dues can rise each year with a board vote, and associations can levy large one-time special assessments for roofs, siding, elevators, or other major repairs. Before buying, review the HOA budget, reserve study, and recent meeting minutes, and budget for modest annual increases.
The principal-and-interest math is exact — it uses the same standard amortization formula lenders use. The tax and insurance portions are only as accurate as the annual figures you enter, so use real quotes and the county’s effective tax rate for the best estimate. The calculator does not include closing costs, utilities, maintenance, or future tax and insurance increases, and your lender’s official Loan Estimate remains the final word. For budgeting and comparing scenarios, though, it is as accurate as the inputs you give it.
Cite this page: SigmaCalculator.net, “Mortgage Calculator with Taxes & Insurance.” Formulas: M = P·r(1+r)n/((1+r)n−1); T = annual tax/12; I = annual premium/12; PITI = M + T + I + PMI + HOA.
Also try our Mortgage Calculator, House Affordability Calculator, Amortization Calculator, Refinance Calculator, Rent vs Buy Calculator, and Down Payment Calculator.
Last updated: October 8, 2026