Mortgage Calculator · Practical guide
Mortgage Calculator with Taxes and Insurance
Principal and interest is only part of the bill — see the real monthly cost including taxes, insurance, and HOA.
At a glance
The Short Answer
Taxes and insurance typically add 15% to 25% on top of principal and interest. On a $400,000 home with 20% down at 6.5% for 30 years, principal and interest alone is $2,022.62 — but add $3,600 a year in property tax and $1,200 a year in homeowners insurance, and the real payment is $2,422.62 per month. A $150 HOA fee brings it to $2,572.62.
Interactive tool
Mortgage Calculator
Enter your own values, then compare the result with the examples below.
Mortgage Summary
| Year | Interest | Principal | Balance |
|---|
| Month | Interest | Principal | Balance |
|---|
How the Payment Stacks Up
| Component | Monthly Amount |
|---|---|
| Principal and interest ($320,000 loan, 6.5%, 30 yr) | $2,022.62 |
| Property tax ($3,600/yr ÷ 12) | $300.00 |
| Homeowners insurance ($1,200/yr ÷ 12) | $100.00 |
| HOA fee | $150.00 |
| Total monthly payment | $2,572.62 |
Estimating Taxes and Insurance
Property taxes commonly run 0.5% to 2.5% of assessed value per year depending on your state and county — on a $400,000 home that is anywhere from $2,000 to $10,000 annually. Homeowners insurance averages roughly $1,200 to $2,000 per year. Lenders collect both monthly through an escrow account, which is why they belong in any honest payment estimate.
What About PMI?
With less than 20% down, most conventional loans also require private mortgage insurance, typically 0.2% to 2% of the loan amount per year. At 0.5%, a $360,000 loan adds about $150 per month. PMI is not included in this calculator's total, so add it separately if it applies — you can request cancellation once you reach 20% equity.
Frequently Asked Questions
What does PITI stand for?
Principal, interest, taxes, and insurance — the four components of a typical monthly mortgage payment. Lenders often quote affordability based on PITI, not principal and interest alone.
How much are property taxes on a $400,000 house?
Between about $2,000 and $10,000 per year depending on location, since rates range from roughly 0.5% to 2.5% of assessed value. Check your county's rate for a precise figure.
Do taxes and insurance change over time?
Yes. Property taxes rise with assessments and insurance premiums adjust annually, so your total payment can increase even with a fixed-rate loan. Only the principal-and-interest part stays constant.
Is HOA included in PITI?
No, HOA fees are paid separately to the association rather than through escrow, but they are still part of your monthly housing cost and count toward debt-to-income ratios.