Mortgage Calculator – Monthly Payment With Taxes and Insurance
Estimate the real monthly cost of buying a home: principal and interest, plus property tax, home insurance and HOA fees — with total interest and an amortization schedule.
A $350,000 home with 20 % down ($70,000) and a $280,000 loan at 6.5 % for 30 years costs about $1,770 a month in principal and interest. Adding $3,500 property tax and $1,200 insurance a year brings the total to about $2,162 a month.
How to use Mortgage Calculator
- Enter the home price.
- Enter your down payment as a percentage.
- Enter the interest rate and choose the loan term.
- Add yearly property tax, insurance and any monthly HOA fee.
- Read the total monthly payment, total interest and schedule.
How the mortgage payment is calculated
The loan part of a fixed-rate mortgage is a standard amortizing loan:
Payment = L × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
L is the loan amount (price minus down payment), r the yearly rate ÷ 12 and n the number of months. On top of that, most homeowners pay property tax, home insurance and sometimes HOA fees; lenders often collect tax and insurance monthly in an escrow account. The calculator adds them so you see the real monthly cost.
Example: $350,000 home, 20 % down
| Rate | 30 years | 15 years |
|---|---|---|
| 5.5 % | $1,590 | $2,288 |
| 6.5 % | $1,770 | $2,439 |
| 7.5 % | $1,958 | $2,596 |
Principal and interest only, on a $280,000 loan. Over 30 years at 6.5 %, total interest is about $357,000 — more than the loan itself. A 15-year loan costs more per month but saves well over $200,000 in interest.
Down payment and mortgage insurance
In the US, putting down less than 20 % usually means paying private mortgage insurance (PMI), often 0.3–1.5 % of the loan per year, until you reach about 20 % equity. A bigger down payment lowers the loan, the payment and the interest.
How much house can you afford?
A common rule is that your total housing payment should stay below about 28 % of gross monthly income, and all debts together below about 36 %. With a $2,162 payment, that suggests an income of roughly $7,700 a month. Keep a separate emergency fund for repairs, which often cost 1 % of the home value per year.
Extra payments
Paying a little extra principal each month shortens the loan and cuts interest sharply. Model that with the Loan Calculator, which has an extra-payment field. Comparing a fixed deposit instead? Use the APY Calculator.
What is not included
Closing costs, PMI and changing rates on adjustable mortgages are not part of the result. Use the rate from your official loan estimate for the most accurate figure.
You may also find these free tools useful: Compound Interest Calculator, Fuel Cost Calculator and Electricity Cost Calculator.
Frequently asked questions
How is a monthly mortgage payment calculated?
The loan payment uses L × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1); then property tax, insurance and HOA are added per month.
What is the payment on a $280,000 mortgage?
At 6.5 % over 30 years about $1,770 a month for principal and interest, before tax and insurance.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher payments but far less total interest. A 30-year loan is more affordable monthly and more flexible.
How much should I put down?
Twenty percent avoids PMI in the US and lowers the payment, but many loans allow 3–10 % down.
Does the calculator include PMI and closing costs?
No. Add PMI if your down payment is under 20 %, and budget separately for closing costs.
Last updated: