Mortgage Calculator with Taxes and Insurance

Your lender will quote PITI — principal, interest, taxes and insurance. Use this calculator to see all four and how much your property tax rate matters.

Quick answer

A mortgage payment with taxes and insurance (PITI) adds monthly property tax and homeowners insurance to principal and interest. For a $400,000 home with 20% down at 6.75% over 30 years, 1.25% property tax and $1,800 a year of insurance, PITI is about $2,642 a month, of which $567 is taxes and insurance.

$
$
%
yrs
%
$
%
$
Total monthly payment
$2,642
Principal & interest
$2,076
Property tax
$416.67
Insurance
$150
PMI
$0
Loan amount
$320,000
For a $400,000 home with $80,000 down (20%), you borrow $320,000. Your all-in housing payment is about $2,642.18 per month, of which $2,075.51 goes to the bank. With at least 20% down, you avoid PMI. Over 30 years, interest alone totals $427,185.

Inputs are pre-filled with the example used on this page — change any number to see your own result. Built on our mortgage calculator.

Key takeaways

  • Most lenders collect property tax and insurance monthly into an escrow account and pay the bills for you.
  • Property tax rates vary widely between states and counties, so the same house can cost hundreds more per month in one place than another.
  • Taxes and insurance can rise every year even on a fixed-rate loan, so your escrow payment can change.
PITI — Principal, interest, taxes and insurance — the four parts of a typical monthly mortgage payment collected by a lender.

How location changes the same mortgage

Keep the loan identical — $320,000 at 6.75% for 30 years, principal and interest of $2,075.51 — and change only the property tax rate:

  • 0.5% tax: $166.67 a month, PITI $2,392.18.
  • 1.25% tax: $416.67 a month, PITI $2,642.18.
  • 2.2% tax: $733.33 a month, PITI $2,958.85.

That is a difference of $566.67 a month for the same house price. Effective property tax rates in the US range from well under 1% in some states to around 2% in others, so check your county's actual rate rather than a national average.

What escrow means for you

With an escrow account, your servicer collects one-twelfth of the yearly tax and insurance bills each month and pays them when due. Once a year it reviews the account; if taxes or premiums rose, your monthly payment rises too, and a shortage may need to be repaid. Federal rules generally limit the extra cushion a servicer can hold to one-sixth of the yearly escrow payments.

Insurance is not one number

Homeowners insurance depends on the home's rebuild cost, location, deductible and claims history. Coastal and wildfire-prone areas can cost far more, and flood insurance is usually a separate policy. Get a real quote before you rely on the estimate.

Worked example

Monthly tax = $400,000 × 1.25% ÷ 12 = $416.67. Monthly insurance = $1,800 ÷ 12 = $150. Principal and interest on $320,000 at 6.75% for 30 years = $2,075.51. PITI = $2,642.18. With 20% down, no PMI is added.

Methodology and sources

Principal and interest use the standard amortization formula. Property tax is the yearly percentage you enter applied to the purchase price (your assessed value may differ). Insurance is your yearly premium divided by 12. PMI is added only below 20% down. Closing costs are not included.

Sources: CFPB – Buying a house · Investopedia – Amortization

Frequently asked questions

What does PITI stand for?

Principal, interest, taxes and insurance. It is the monthly amount most lenders collect, and it is used to judge whether you can afford the loan.

Are property taxes based on the purchase price?

Usually on the assessed value, which may be lower or higher than what you pay and may be reassessed after a sale. Using the purchase price is a reasonable estimate; check your county's rules.

Why did my mortgage payment go up on a fixed-rate loan?

The principal and interest part is fixed, but the escrow part changes when property taxes or insurance premiums change.

Can I pay taxes and insurance myself?

Some lenders allow you to waive escrow, often only with a larger down payment and sometimes for a fee. You then pay the bills directly when due.

Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated