Lenders qualify you on PITI, not just principal and interest. Property taxes average about 1% of home value nationally (from 0.3% in Hawaii to over 2% in New Jersey and Illinois), and insurance has risen sharply in hurricane and wildfire areas.
How to use the Mortgage Calculator with Taxes and Insurance
- Home value
- Down payment
- Interest rate
- Loan term
- Property tax rate (yearly)
- Homeowner insurance (yearly)
- PMI rate (yearly)
- HOA fee (monthly)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the home price, down payment, rate, term, property tax rate, insurance, PMI rate and HOA fee.
Inputs explained
| Field | What to enter |
|---|---|
| Home value | Amount in your currency |
| Down payment | In % |
| Interest rate | In % |
| Loan term | Units: years, months |
| Property tax rate (yearly) | In % |
| Homeowner insurance (yearly) | Amount in your currency |
| PMI rate (yearly) | In % |
| HOA fee (monthly) | Amount in your currency |
What each result means
- Loan amount = [Home value]×(1 – [Down payment]÷100)
- Principal and interest = pmt([Interest rate]÷1200, [Loan term], [Loan amount])
- Property tax (monthly) = [Home value]×[Property tax rate (yearly)]÷1200
- Insurance (monthly) = [Homeowner insurance (yearly)]÷12
- Total monthly payment = [Principal and interest] + [Property tax (monthly)] + [Insurance (monthly)] + [PMI (monthly)] + [HOA fee (monthly)]
- Principal and interest share = [Principal and interest]÷[Total monthly payment]×100
- Total interest over the loan = [Principal and interest]×[Loan term] – [Loan amount]
Example values
How the main result changes when Home value changes and everything else stays at the example values above:
| Home value | Total monthly payment |
|---|---|
| 200,000 | 1,612.72 |
| 300,000 | 2,310.75 |
| 400,000 | 3,008.78 |
| 500,000 | 3,706.81 |
| 600,000 | 4,404.83 |
| 800,000 | 5,800.89 |
Formula
P&I = pmt(rate ÷ 12, months, loan)
Total monthly = P&I + property tax ÷ 12 + insurance ÷ 12 + PMI + HOA
Worked example
Inputs: Home value: $400,000; Down payment: 10 %; Interest rate: 6.5 %; Loan term: 30 years; Property tax rate (yearly): 1.1 %; Homeowner insurance (yearly): $2,000; PMI rate (yearly): 0.5 %; HOA fee (monthly): $50.
Results: Loan amount = $360,000.00; Principal and interest = $2,275.44; Property tax (monthly) = $366.67; Insurance (monthly) = $166.67; PMI (monthly) = $150.00; Total monthly payment = $3,008.78; Principal and interest share = 75.63 %; Total interest over the loan = $459,160.16.
Frequently asked questions
What is PITI?
Principal, interest, taxes and insurance, which together make up your full mortgage payment.
How much is property tax?
Around 1% of home value per year on average in the U.S.
Is homeowner insurance required?
Lenders require it for as long as you have a mortgage.
Sources
Guides on this topic
- How Much House Can I Afford? The 28/36 Rule With a Worked Example: Work out a realistic home budget with the 28/36 rule, debt-to-income ratio, down payment, PMI and closing costs, then stress-test it against take-home pay and higher rates.
- How to Calculate a Mortgage Payment (Formula + Example): The mortgage payment formula explained step by step, with a worked example, what PITI adds on top, and how rate, term, down payment and extra payments change what you pay.