Mortgage calculator with taxes and insurance
This mortgage calculator with taxes and insurance shows your full PITI payment, principal, interest, taxes and insurance, so you see the cost you will really pay each month.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,800.26 | $21,988.10 | $336,199.74 |
| 2 | $4,054.77 | $21,733.59 | $332,144.97 |
| 3 | $4,326.30 | $21,462.06 | $327,818.67 |
| 4 | $4,616.06 | $21,172.30 | $323,202.61 |
| 5 | $4,925.21 | $20,863.15 | $318,277.40 |
| 6 | $5,255.05 | $20,533.31 | $313,022.35 |
| 7 | $5,607.00 | $20,181.36 | $307,415.35 |
| 8 | $5,982.49 | $19,805.87 | $301,432.86 |
| 9 | $6,383.17 | $19,405.19 | $295,049.69 |
| 10 | $6,810.66 | $18,977.70 | $288,239.03 |
| 11 | $7,266.80 | $18,521.56 | $280,972.23 |
| 12 | $7,753.44 | $18,034.92 | $273,218.79 |
| 13 | $8,272.70 | $17,515.66 | $264,946.09 |
| 14 | $8,826.74 | $16,961.62 | $256,119.35 |
| 15 | $9,417.90 | $16,370.46 | $246,701.45 |
| 16 | $10,048.61 | $15,739.75 | $236,652.84 |
| 17 | $10,721.60 | $15,066.76 | $225,931.24 |
| 18 | $11,439.66 | $14,348.70 | $214,491.58 |
| 19 | $12,205.78 | $13,582.58 | $202,285.80 |
| 20 | $13,023.21 | $12,765.15 | $189,262.59 |
| 21 | $13,895.43 | $11,892.93 | $175,367.16 |
| 22 | $14,826.01 | $10,962.35 | $160,541.15 |
| 23 | $15,818.94 | $9,969.42 | $144,722.21 |
| 24 | $16,878.38 | $8,909.98 | $127,843.83 |
| 25 | $18,008.75 | $7,779.61 | $109,835.08 |
| 26 | $19,214.82 | $6,573.54 | $90,620.26 |
| 27 | $20,501.67 | $5,286.69 | $70,118.59 |
| 28 | $21,874.70 | $3,913.66 | $48,243.89 |
| 29 | $23,339.69 | $2,448.67 | $24,904.20 |
| 30 | $24,904.20 | $885.57 | $0.00 |
What PITI includes
PITI stands for principal, interest, taxes and insurance. Lenders often collect the tax and insurance portion monthly in an escrow account and pay the bills for you. Because tax and insurance bills can change, your total payment can rise or fall even with a fixed-rate loan.
Estimating tax and insurance
Property tax is a percentage of assessed value that varies by location, often between 0.3% and 2.5% a year. Insurance depends on the home’s age, location and coverage, and can be much higher in areas exposed to storms, wildfires or floods. Use the listing’s tax figure and a quote from an insurer instead of national averages when you can.
$340,000 loan: 15-year vs 30-year
On a $340,000 mortgage, a 30-year loan at 6.5% costs $2,149.03 a month in principal and interest and $433,652 in total interest. A 15-year loan at a rate about 0.6 points lower costs $2,850.78 a month, $701.75 more, but cuts the interest to $173,139, saving $260,513. The right choice depends on whether the higher payment fits your budget with room to spare.
| Loan | Principal & interest | Total interest | Total paid |
|---|---|---|---|
| 10-year at 5.9% | $3,757.65 | $110,917 | $450,917 |
| 15-year at 5.9% | $2,850.78 | $173,139 | $513,139 |
| 20-year at 5.9% | $2,416.29 | $239,910 | $579,910 |
| 30-year at 6.5% | $2,149.03 | $433,652 | $773,652 |
What each 6.5% ± 1 point does to the payment
A one-point change in your mortgage rate moves the payment on $340,000 by roughly $228.30 a month and the lifetime interest by about $82,186 over 30 years. That is why it pays to compare several lenders on the same day.
| Rate | Principal & interest | Total interest | Difference vs 6.5% |
|---|---|---|---|
| 5.5% | $1,930.48 | $354,975 | −$78,677 |
| 6% | $2,038.47 | $393,851 | −$39,801 |
| 6.5% | $2,149.03 | $433,652 | +$0 |
| 7% | $2,262.03 | $474,329 | +$40,677 |
| 7.5% | $2,377.33 | $515,838 | +$82,186 |
Down payment and PMI on a $425,000 home
With less than 20% down, lenders charge private mortgage insurance (PMI), commonly 0.3% to 1.5% of the loan per year. This page assumes 0.6%. PMI usually ends when you reach 80% of the home's original value, which you can reach sooner with extra payments.
| Down payment | Loan amount | PMI / month | Total monthly payment |
|---|---|---|---|
| 5% ($21,250) | $403,750 | $201.88 | $3,386.56 |
| 10% ($42,500) | $382,500 | $191.25 | $3,241.62 |
| 20% ($85,000) | $340,000 | $0.00 | $2,781.74 |
What income does a $425,000 home need?
Lenders often look at a front-end ratio of about 28% of gross income for housing costs. A total payment of $2,781.74 implies a gross income near $119,000 a year, and lenders also weigh your other debts, which usually must keep total payments under about 36% to 43% of income.
Year one is interest-heavy: $21,988 of interest against $3,800 of principal repaid, which is why extra payments early on have the most effect.
How fast you build equity
Equity here is the home price minus the loan balance, assuming the price stays flat. Appreciation, if any, would add to it.
| After | Loan balance | Principal repaid | Equity (flat value) |
|---|---|---|---|
| 5 years | $318,277 | $21,723 | $106,723 |
| 10 years | $288,239 | $51,761 | $136,761 |
| 15 years | $246,701 | $93,299 | $178,299 |
| 20 years | $189,263 | $150,737 | $235,737 |
Frequently asked questions
What is an escrow account?
A lender-held account that collects part of your property tax and insurance with each mortgage payment and pays those bills when due.
Why did my mortgage payment go up on a fixed-rate loan?
Your property tax or insurance rose, which raises the escrow portion. Principal and interest stay the same.
What is the monthly payment on a $340,000 mortgage?
At 6.5% over 30 years, principal and interest on $340,000 is $2,149.03. With the estimated tax, insurance, HOA and PMI above, the total comes to about $2,781.74 a month.
What is included in a monthly mortgage payment?
Principal and interest are the loan itself. Many lenders also collect property tax and homeowners insurance in escrow, and charge PMI if your down payment is under 20%. HOA dues are paid separately.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.