Mortgage Calculator With Taxes & Insurance
Affordability check (optional)
Used only for the 28% housing-ratio check below — the number never leaves your browser.
Estimated total monthly payment (PITI)
$2,568.45
- Principal & interest
- $2,022.62
- Property tax (escrow)
- $400.00
- Home insurance (escrow)
- $145.83
- Total escrowed with lender
- $545.83
Loan amount
$320,000
- Down payment
- $80,000
- Loan-to-value (LTV)
- 80.00%
- Total interest over term
- $408,142
Estimates only — tax and insurance vary by location and coverage; your lender's escrow analysis governs. PMI is not included: at 20% down it is typically not required. With a smaller down payment, add PMI with the mortgage calculator with PMI.
On a $400,000 home with 20% down at 6.5% for 30 years, principal and interest come to $2,022.62 a month — but your real payment is about $2,568, because PITI means Principal + Interest + Taxes + Insurance, with the tax and insurance pieces collected monthly through your lender's escrow account. Lenders qualify you on that full figure, and the classic safety line is keeping total housing costs at or below 28% of gross monthly income (at $9,200 a month, the ceiling is about $2,576). This calculator adds up PITI, your escrow portion, and total interest in one run.
Why your "mortgage payment" is not just P&I
Most mortgage calculators hand you a number that is only principal and interest. Your lender collects four components from day one, and the payment you actually feel is always the sum — PITI:
| Part | What it is | Default example | |---|---|---| | Principal | The slice that actually pays down your balance | about $289 the first month | | Interest | The charge on your remaining balance | about $1,733 the first month | | Taxes | Property tax, billed annually, collected monthly | $400/mo ($4,800/yr) | | Insurance | Homeowners insurance, collected monthly | $146/mo ($1,750/yr) |
On a fixed-rate loan, P&I never changes for 30 years; taxes and insurance adjust every year. Ignoring T and I is the number-one cause of first-year budget shock — in most markets they add 20%–25% on top of the payment the calculator quoted you.
Escrow: why your lender pays your taxes
Lenders do not trust you to save up for the tax bill (an unpaid property tax creates a lien that jumps ahead of their mortgage), so nearly every conventional loan uses an escrow account: each month they collect one-twelfth of the annual tax and insurance along with your payment, then pay the bills when they arrive.
- The escrow slice of your payment = tax ÷ 12 + insurance ÷ 12 — $545.83 a month on the default example.
- Once a year the servicer runs an escrow analysis: taxes or premiums went up, so your payment goes up, and any shortfall gets repaid. When homeowners ask "why did my payment increase?" — on a fixed rate — this is almost always the answer.
- With 20% down, some lenders let you waive escrow and pay taxes yourself (often for a fee); FHA and low-down-payment conventional loans almost always require it.
- HOA dues do not go through escrow — but lenders still count them when qualifying you, so this calculator carries them as a separate line.
The 28% rule: how a lender sees your payment
Underwriting never looks at P&I alone. The housing ratio (front-end DTI) divides the full payment — PITI plus HOA — by gross monthly income:
- 28% or less is the classic guideline (shared by FHA and conventional underwriting manuals). The default example lands at $2,568 ÷ $9,200 ≈ 27.9% — just under the line.
- Going over does not mean automatic rejection: conventional lending really hinges on the back-end DTI (all debts, 43%–50%). But a payment approaching a third of income leaves a thin life budget.
- Reverse it to shop by payment: income × 28% = target payment. $9,200 × 28% ≈ $2,576 — which, at the default tax and insurance rates, supports about a $400,000 home with 20% down.
How to use this calculator
The page opens with the $400,000 / 20% down / 6.5% / 30-year example so there is a complete result on screen immediately:
- Fill in Home price, Down payment, Interest rate, and Loan term (30, 20, or 15 years).
- Enter real numbers for Annual property tax and Annual home insurance: check the county assessor or a listing's tax disclosure for the tax (effective rates run about 0.3%–1.9% by state, roughly 1% a year at the median), and your insurance quote for the premium.
- Pay HOA dues? Add them under Monthly HOA dues — not escrowed, but they count in the total and in DTI.
- Fill in the optional Affordability check with household gross monthly income to see your 28% ratio.
- Read the results: total PITI, the four-part breakdown, total escrowed, loan amount, and total interest over the term — $408,142 over 30 years on the default example. More than the house. That is what 6.5% does.
Frequently asked questions
What does PITI mean?
Principal, Interest, Taxes, Insurance — the four parts of a full mortgage payment. P&I goes to your lender; taxes and insurance flow through the escrow account to the government and your insurer. Budget on PITI, not P&I — the difference is a fifth to a quarter of the payment in most markets.
How are property tax and insurance included in my mortgage payment?
Through escrow: the servicer collects one-twelfth of the annual tax and one-twelfth of the annual premium each month, then pays those bills for you when due. You never have to remember two due dates; the trade-off is a payment that moves whenever taxes or premiums do.
What happens if my escrow account is short?
The servicer fronts the bill, then offers you two ways to repay: spread the shortfall over the next 12 months (payment rises) or pay it in a lump sum. Persistent gaps can trigger a required cushion. Your annual escrow analysis statement explains the exact arithmetic.
How much of my income should my mortgage payment be?
The classic guideline: total housing payment at or below 28% of gross monthly income (front-end DTI), with all debts combined at 43%–50% (back-end DTI). The Affordability check in the calculator shows your ratio against the 28% line instantly.
How much is property tax on a house?
Effective rates run from about 0.3% to 1.9% depending on the state, roughly 1% of home value per year at the median (Tax Foundation, 2026 edition, 2024 data) — around $4,000 a year on a $400,000 home. New Jersey, Illinois, and Texas sit high; Hawaii and Alabama sit low. When shopping, pull the current rate and assessment from the county assessor rather than trusting a listing's estimate.
Can I skip escrow and pay taxes myself?
Conventional loans with 20% or more down can often waive escrow, sometimes for a setup fee or a slightly higher rate; low-down-payment and FHA loans generally cannot. Self-managing suits disciplined savers — otherwise the tax bill lands as one four-figure thud each year.
Sources: Example figures computed by the mortgage engine behind this calculator. The 28% front-end DTI guideline reflects standard FHA and conventional underwriting practice. Property tax ranges from Tax Foundation state effective-rate data (Property Taxes by State and County, 2026 edition; data year 2024; accessed 2026-10-05). More tools in the finance calculators hub.
This calculator provides estimates for informational purposes only and does not constitute lending or financial advice. Taxes and premiums vary by location, assessment, and coverage — your lender's escrow analysis and Loan Estimate govern.