Free Mortgage Calculator with Taxes & Insurance
Estimate your monthly mortgage payment including principal, interest, property taxes, homeowners insurance, and PMI. Adjust the inputs to see how different scenarios affect your payment.
How to Use This Mortgage Calculator
- Enter the home price or total loan amount you are considering.
- Input your down payment amount or percentage.
- Set the interest rate — check current rates from your lender or use national averages.
- Choose the loan term (15, 20, or 30 years).
- Add your estimated annual property tax rate, homeowners insurance, and any HOA fees.
- Review your total monthly payment breakdown and amortization schedule.
How Your Mortgage Payment Is Calculated
The core mortgage payment formula calculates the fixed monthly principal and interest:
M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ − 1]- M = Monthly payment (principal + interest)
- P = Loan principal (home price minus down payment)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Your total monthly payment (PITI) adds property taxes (annual tax ÷ 12), homeowners insurance (annual premium ÷ 12), and PMI if applicable.
Example Scenarios
Starter Home — $300,000 purchase
Down payment: $60,000 (20%) · Loan: $240,000 · Rate: 6.75% · Term: 30 years
Monthly P&I: $1,557 · Taxes: $250 · Insurance: $125
Total monthly: ~$1,932
Mid-Range Home — $450,000 purchase
Down payment: $45,000 (10%) · Loan: $405,000 · Rate: 6.75% · Term: 30 years
Monthly P&I: $2,627 · Taxes: $375 · Insurance: $175 · PMI: $203
Total monthly: ~$3,380
15-Year Accelerated — $350,000 purchase
Down payment: $70,000 (20%) · Loan: $280,000 · Rate: 6.0% · Term: 15 years
Monthly P&I: $2,363 · Taxes: $292 · Insurance: $146
Total monthly: ~$2,801 · Interest saved vs 30-year: ~$160,000
Tips for Getting the Best Mortgage
- Shop at least 3–5 lenders to compare rates — even 0.25% makes a big difference over 30 years.
- Improve your credit score before applying; scores above 740 get the best rates.
- Consider paying points upfront if you plan to stay in the home long-term.
- Keep your total housing costs below 28% of gross monthly income.
- Get pre-approved (not just pre-qualified) to strengthen your offer.
- Don't forget closing costs — budget 2–5% of the purchase price.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
Your monthly mortgage payment is calculated using the formula M = P[r(1+r)^n]/[(1+r)^n – 1], where P is the loan principal, r is the monthly interest rate, and n is the number of monthly payments. Property taxes, insurance, and PMI are added on top of the principal and interest amount.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price on a conventional loan. PMI typically costs between 0.5% and 1.5% of the loan amount per year and can be removed once you reach 20% equity.
How does interest rate affect my monthly payment?
Even small changes in interest rate significantly impact your payment. On a $300,000 loan, a 0.5% rate increase adds roughly $90/month or $32,400 over 30 years.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significant money on interest and typically offers a lower rate (about 0.5–0.75% less). A 30-year mortgage provides lower payments and more monthly flexibility. Choose based on your budget and goals.
What costs are not included in this calculator?
This calculator estimates principal, interest, taxes, insurance, and PMI. It does not include HOA fees, maintenance costs, utilities, closing costs, or potential special assessments.
How much should I put down on a house?
The traditional recommendation is 20% to avoid PMI, but many programs allow less. FHA loans require 3.5%, conventional loans can start at 3%, and VA loans offer 0% down. A larger down payment means lower monthly payments and less total interest.