Mortgage Calculator With Taxes & Insurance

Published 2026-11-06.

What the monthly payment is made of

Most monthly mortgage payments have four parts, often called PITI: principal, interest, property tax and homeowners insurance. Principal and interest repay the loan itself, on the standard amortisation formula: monthly payment = loan × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly interest rate and n is the number of monthly payments. Property tax and homeowners insurance are usually collected monthly into an escrow account and paid by the servicer when they fall due, so the monthly figures are the annual amounts divided by 12. A fifth part applies when the down payment is less than 20%: private mortgage insurance, or PMI.

PMI: what it is, what it costs, and when it ends

PMI is insurance that protects the lender, not you, if you default. Conventional lenders require it when the loan-to-value ratio (LTV) is above 80% — that is, when the down payment is less than 20% of the home's value. The Consumer Financial Protection Bureau explains that PMI does not protect you and you can still lose the home through foreclosure if you fall behind. PMI typically costs 0.3% to 1.5% of the original loan amount per year, depending on credit score, down payment, loan type and the PMI company; the Urban Institute's Housing Finance Policy Center puts the range at 0.46% to 1.5%, and Freddie Mac estimates roughly $30 to $70 a month for every $100,000 borrowed. The monthly PMI cost is the loan amount times the annual rate, divided by 12 — and this tool shows it as its own labelled output, because it is the figure the “private mortgage insurance cost calculator” question is asking for. In short, this page is also a mortgage insurance and tax calculator: it adds the monthly PMI cost to the tax and insurance figures in the same total.

PMI ends under the federal Homeowners Protection Act of 1998. You can ask your servicer in writing to cancel PMI once the balance reaches 80% of the home's original value, provided you are current on payments and meet the other conditions. The servicer must cancel it automatically when the balance is first scheduled to reach 78% of the original value, if you are current. And PMI ends no later than the midpoint of the loan term — month 180 of a 30-year loan — even if the balance has not reached 78%. Note that the 80% and 78% milestones follow the original amortisation schedule, not the home's current market value: appreciation alone does not trigger automatic cancellation, though you can ask for early cancellation based on a current appraisal. FHA loans are different: they carry mortgage insurance premium (MIP), not PMI, and MIP cannot be removed on loans made after June 2013 with less than 10% down. The FHA mortgage insurance calculator on this site works out MIP from HUD Mortgagee Letter 2023-05 rates.

Worked example

Take a $400,000 home with a 30-year loan at 6.5% annual interest and a 10% down payment ($40,000). The loan is $360,000 and the LTV is 90%, so PMI applies. Principal and interest: $360,000 at 6.5% over 360 months is $2,275.44 a month. Property tax of $4,800 a year is $400 a month. Homeowners insurance of $2,400 a year is $200 a month. PMI at 0.5% a year is $360,000 × 0.005 ÷ 12 = $150.00 a month. Total: $2,275.44 + $400.00 + $200.00 + $150.00 = $3,025.44 a month. With a 20% down payment ($60,000 on a $300,000 home) at 6% over 30 years, the same calculation gives principal and interest of $1,438.92, tax $300, insurance $150 and PMI $0.00 — LTV is 80%, so no PMI — for a total of $1,888.92 a month. Both examples are worked from the tool's own formula and were verified by running the same arithmetic in Node; your figures will differ.

What this calculator does not do

This tool does not quote a mortgage, set an interest rate or a PMI rate, or give a full picture of homeownership costs: HOA dues, maintenance, utilities and moving costs are not included, and the interest rate and PMI rate are inputs you supply, not rates this site holds. It does not calculate FHA mortgage insurance — see the FHA mortgage insurance calculator for that — and it does not estimate what your home is worth or what cover you need, which is the homeowners cost calculator's job. Your lender's Loan Estimate shows the exact amounts for your loan.

For the PMI rules themselves, see the Consumer Financial Protection Bureau on private mortgage insurance and the Homeowners Protection Act (12 U.S.C. § 4901 et seq.).