United States · Home buying
Mortgage payment with taxes and insurance.
Estimate the real monthly cost of a U.S. home loan: principal and interest, property tax, homeowners insurance, PMI and HOA dues.
Your lender's payment is usually PITI: principal, interest, property taxes and insurance, often with PMI when you put down less than 20%. Taxes and insurance are typically collected in an escrow account and paid for you.
Loan and costs
Monthly payment
What goes into the payment
| Piece | How it is calculated |
|---|---|
| Principal and interest | Standard amortization: loan × r ÷ (1 − (1 + r)−n), r = APR ÷ 12, n = months |
| Property tax | Price × annual tax rate ÷ 12 (this tool uses purchase price, not the assessed value, which can differ) |
| Homeowners insurance | Annual premium ÷ 12 |
| PMI | Loan × annual PMI rate ÷ 12, only if the loan is above 80% of the price |
| HOA dues | Entered monthly; not part of escrow but counted by lenders in your debt ratio |
Worked example
On a $400,000 home at 6.5% over 30 years, a 20% down payment means a $320,000 loan and a principal-and-interest payment of $2,022.62. Adding $367 a month of property tax at 1.1% and $150 of insurance brings the total to about $2,539.28 with no PMI. Put only 5% down and the loan is $380,000, principal and interest rises to $2,401.86, PMI adds $190.00, and the total is $3,108.53, about $569 more every month. The tool estimates PMI would fall off after roughly 11 years 3 months, when the scheduled balance reaches 78% of the original price.
PMI, and when it ends
Private mortgage insurance protects the lender on conventional loans with less than 20% down. Under the Homeowners Protection Act you can ask your servicer to cancel it once your balance reaches 80% of the original value (you must be current and may need an appraisal if you rely on market appreciation), and it must end automatically when the scheduled balance reaches 78%. FHA loans use mortgage insurance premiums with different rules, and VA loans have a funding fee instead; this tool models conventional PMI only.
Why your real bill can differ
- Escrow changes. Taxes and insurance rise over time, and your servicer re-computes escrow every year. A shortage raises the monthly payment.
- Reassessment. After a purchase many counties reassess to the sale price, so the tax on a bought home can be higher than the seller's. California limits annual increases under Proposition 13; other states differ.
- Insurance. Premiums in coastal, wildfire and hail regions have been rising quickly; flood insurance is separate and often required in mapped flood zones.
- Rate versus APR. Enter the note rate here; APR includes points and fees and is a comparison tool, not the payment rate.
What this tool does not cover
Closing costs, points, mortgage-insurance premiums on FHA and USDA loans, interest-only or adjustable-rate periods, and the tax deduction for mortgage interest and property tax (see IRS Topic 505 and your itemizing situation).
Common mix-ups
Quoting principal and interest and calling it the payment; entering the note rate where the APR belongs (or the reverse); using the seller's property tax rather than the bill after reassessment; and expecting PMI to vanish at 80% when automatic termination is at 78% of the scheduled balance.
Frequently asked questions
What does PITI stand for?
Principal, interest, taxes and insurance. It is the monthly payment many lenders quote, with property tax and homeowners insurance collected in escrow. PMI and HOA dues are often added on top.
How is property tax estimated here?
As a percentage of the purchase price per year, divided by 12. Real bills use your county's assessed value and local rates, so check the county assessor's site for the home you are considering.
When does PMI go away?
You can request cancellation at 80% of the original value and it must end automatically at 78% of the scheduled balance, as long as you are current. Reaching those levels early through extra payments or appreciation may require a request and appraisal.
Should I put 20% down to avoid PMI?
Not necessarily. PMI costs money but lets you buy sooner and keep cash. Compare the PMI cost with what the extra down payment would earn or protect.
Does this include closing costs?
No. Closing costs are one-time and typically run about 2% to 5% of the price; they are separate from the monthly payment.
Sources
- CFPB, What is an escrow or impound account? — how taxes and insurance are collected with the mortgage payment (retrieved 2026-11)
- CFPB, What is private mortgage insurance? — what PMI is and when lenders require it (retrieved 2026-11)
- CFPB, When can I remove PMI from my loan? — request at 80%, automatic termination at 78% (retrieved 2026-11)
- Homeowners Protection Act, 12 U.S.C. 4902 (termination of private mortgage insurance) — the 78% automatic-termination rule (retrieved 2026-11)
- IRS Tax Topic 505, Interest expense — when mortgage interest and points are deductible (retrieved 2026-11)
Last updated November 8, 2026. Tax-law figures are for tax year 2026.
Estimate only
This is an educational calculation, not tax, legal or investment advice. Your plan, lender, employer or tax professional has the final numbers.