Mortgage Calculator with Taxes and Insurance

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a complete monthly mortgage payment. Principal reduces your loan balance, interest is the lender's fee for borrowing, taxes are the monthly property tax escrow, and insurance covers your homeowner's policy and PMI if required. Most lenders require all four components to be paid together monthly so the tax and insurance portions are held in escrow and paid on your behalf when they come due.

The P&I portion uses the standard amortization formula: M = P x r x (1+r)^n / ((1+r)^n - 1), where P is the loan amount (home price minus down payment), r is the monthly rate (annual rate / 100 / 12), and n is the total number of monthly payments (years x 12). Add monthly property tax (annual tax / 12), monthly insurance (annual premium / 12), and monthly PMI if your down payment is under 20%. For example: $320,000 loan at 6.5% for 30 years gives r = 0.065/12, n = 360, M = $2,022.62 P&I.

Private Mortgage Insurance (PMI) is required on conventional mortgages when the down payment is less than 20% of the purchase price. PMI protects the lender if you default. The cost typically ranges from 0.1% to 2% of the loan amount per year, with most borrowers paying around 0.5%–1%. On a $285,000 loan at 0.5%, PMI is about $119/month. PMI can generally be cancelled once you have paid the loan down to 80% of the original purchase price, or when your home has appreciated enough to bring the loan-to-value ratio to 80% on a new appraisal.

A down payment is the upfront cash you contribute toward the home purchase; the rest is financed. A larger down payment reduces the loan amount (lowering P&I), eliminates PMI when it reaches 20% of the purchase price, and reduces total interest paid over the life of the loan. A smaller down payment means a higher loan balance, PMI, and more total interest — but lets you buy sooner with less cash upfront.

A 30-year term gives you a lower monthly P&I payment but you pay significantly more interest over the life of the loan. A 15-year term means a higher monthly payment but far less total interest — often less than half. On a $320,000 loan at 6.5%: the 30-year P&I is about $2,023/month ($408,000 total interest) versus the 15-year P&I at about $2,790/month ($182,000 total interest). The 15-year saves about $226,000 in interest at the cost of roughly $767/month more.

Property tax escrow is a lender-held account funded by your monthly mortgage payment. Instead of paying a large annual or semi-annual property tax bill yourself, your lender collects 1/12 of your estimated annual property tax each month and pays the taxing authority on your behalf when it is due. This protects the lender from a tax lien that would take priority over the mortgage. The amount is recalculated annually when your tax bill changes — if taxes go up, your monthly escrow payment increases too.

Homeowner's insurance (hazard insurance) is required by virtually all mortgage lenders as a condition of the loan — it protects the collateral against fire, storm, and other covered perils. The national average annual premium in the US is roughly $1,200–$2,000 for a typical home, though it varies widely by location, home value, coverage level, and insurer. Your lender will collect it monthly in escrow alongside your property tax.

An amortization calculator shows only the P&I portion — the loan payment schedule with the principal/interest split each period. This PITI mortgage calculator adds property taxes, homeowner's insurance, and PMI to give you the full monthly payment you will actually owe. It also calculates the loan amount from home price and down payment, applies the 20%-down PMI threshold, and answers the practical home-buying question: what will my total monthly housing cost be?

Lenders typically use two debt-to-income (DTI) ratios: the front-end ratio (PITI divided by gross monthly income should be at or below 28%) and the back-end ratio (PITI plus all other monthly debt payments divided by gross monthly income should be at or below 36%–43%). For example, a PITI of $2,548 requires a gross monthly income of at least $2,548 / 0.28 = $9,100 (about $109,000/year) by the front-end rule. Our house-affordability calculator works backward from your income and debts to tell you the maximum home price you may qualify for.

Yes. Under the Homeowners Protection Act (US law), lenders must automatically cancel PMI when your loan-to-value ratio reaches 78% of the original purchase price based on scheduled payments. You can also request cancellation in writing when the LTV reaches 80%, either through normal amortization or a new appraisal if your home has appreciated. This calculator conservatively shows PMI for the full loan term — your actual PMI cost will be lower if you cancel it earlier.

This calculator covers the four standard PITI components. It does not include: closing costs (typically 2%–5% of the loan amount), HOA fees, loan origination points, FHA mortgage insurance premium (MIP), VA funding fees, flood insurance if required by location, or the mortgage interest tax deduction that may apply for US itemising taxpayers. Factor these in separately when fully budgeting for a home purchase.

Yes, significantly. On a $320,000 loan over 30 years, a 1% rate increase from 6.5% to 7.5% adds about $210/month to the P&I payment — roughly $75,000 more in total interest over the life of the loan. A 2% increase (for example from 5% to 7%) raises the monthly P&I by about $400 and increases total interest by over $140,000. Locking in a lower rate — or making a larger down payment to borrow less — are the two most impactful ways to reduce total mortgage cost.