Mortgage Calculator with Taxes and Insurance — Full Monthly Payment Breakdown
Your mortgage payment is more than just principal and interest. Property taxes, homeowner's insurance, and PMI can add hundreds of dollars per month. Learn exactly what goes into your total monthly payment — with real examples.
What Makes Up Your Total Monthly Mortgage Payment?
Most people focus only on the principal and interest (P&I) payment, but your actual monthly housing cost — called PITI — includes four components:
Principal
The portion of your payment that reduces your loan balance. Starts small, grows over time.
Interest
The cost of borrowing. Starts large, shrinks as your balance decreases.
Taxes
Property taxes collected monthly and held in escrow. Typically 1–2% of home value annually.
Insurance
Homeowner's insurance + PMI (if down payment < 20%). Usually $100–$300/month combined.
The Full Mortgage Payment Formula
Step 1 — Principal & Interest (P&I)
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]P = loan amount, r = monthly rate, n = total payments
Step 2 — Monthly Property Tax
Annual Property Tax ÷ 12Step 3 — Monthly Insurance
Annual Homeowner's Insurance ÷ 12Step 4 — PMI (if applicable)
(Loan Amount × 0.01) ÷ 12 ≈ typical PMITotal Monthly Payment (PITI)
P&I + Monthly Tax + Monthly Insurance + PMIReal Examples — Total Monthly Payment with Taxes & Insurance
$300,000 Home — 10% Down, 6.5% Rate, 30 Years
Loan Amount
$270,000
P&I Payment
$1,707
Monthly Tax
$375 (1.5% annually)
Insurance
$100
PMI
$225 (0.1%/mo)
Total Monthly
$2,407
PMI applies because down payment is under 20%. Once you reach 20% equity (~$60K paid down), PMI drops off, saving $225/month.
$500,000 Home — 20% Down, 7% Rate, 30 Years
Loan Amount
$400,000
P&I Payment
$2,661
Monthly Tax
$625 (1.5% annually)
Insurance
$150
PMI
$0 (20% down)
Total Monthly
$3,436
With 20% down, no PMI required. The higher rate (7%) significantly increases the P&I vs a 6% rate ($2,398).
$250,000 Home — 5% Down, 6% Rate, 15 Years
Loan Amount
$237,500
P&I Payment
$2,004
Monthly Tax
$260 (1.25% annually)
Insurance
$80
PMI
$198
Total Monthly
$2,542
15-year mortgage has higher monthly payments but saves ~$100,000 in interest vs 30 years. PMI applies until 20% equity.
Property Tax Rates by State (Approximate)
| State | Avg Tax Rate | On $400K Home |
|---|---|---|
| New Jersey | 2.49% | $9,960/yr ($830/mo) |
| Illinois | 2.27% | $9,080/yr ($757/mo) |
| New Hampshire | 2.18% | $8,720/yr ($727/mo) |
| Texas | 1.80% | $7,200/yr ($600/mo) |
| California | 0.76% | $3,040/yr ($253/mo) |
| Florida | 0.89% | $3,560/yr ($297/mo) |
| Hawaii | 0.32% | $1,280/yr ($107/mo) |
Rates vary significantly by county. Check your local assessor's website for exact rates.
Frequently Asked Questions
What is escrow in a mortgage?
Escrow is an account your lender manages to collect and pay your property taxes and insurance. Each month, a portion of your payment goes into escrow, and the lender pays your tax and insurance bills when due.
How much is PMI per month?
PMI typically costs 0.5–1.5% of the loan amount annually. On a $300,000 loan, that's $1,500–$4,500/year or $125–$375/month. The exact rate depends on your credit score and down payment.
When can I remove PMI?
You can request PMI removal when your loan balance reaches 80% of the original home value (20% equity). Lenders must automatically cancel PMI when you reach 78% LTV based on the original amortization schedule.
Is homeowner's insurance required?
Yes, lenders require homeowner's insurance as a condition of the mortgage. It protects both you and the lender if the home is damaged or destroyed.