AmortizeHub

Mortgage Calculator With Taxes and Insurance

Principal and interest are only part of a mortgage payment. Add property tax, homeowners insurance, HOA dues and PMI to see the full monthly cost — and when PMI is scheduled to drop off.

Home and loan details

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10% down · loan $360,000 · 90% LTV

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Estimated monthly payment (PITI)

$2,975.44

Loan $360,000.00 · 90% LTV · PMI ends Aug 2034 (payment 95)

Principal & interest
$2,275.44
76.5%
Property tax
$400.00
13.4%
Home insurance
$150.00
5.0%
HOA
$0.00
0.0%
PMI
$150.00
5.0%
Full amortization schedule →

What PITI means

P is principal, the part of the payment that reduces the loan balance. I is interest, charged on the outstanding balance. T is property tax, which your local government collects based on the assessed value of the home. I is homeowners insurance, which covers damage to the property and liability. Together they make up the payment most US lenders quote.

Two more items often appear on a real payment: HOA dues, paid to a homeowners association, and PMI (private mortgage insurance), required on many loans when the down payment is below 20%. The calculator includes both when you enter them.

Why the monthly payment is higher than principal and interest

Lenders usually collect taxes and insurance monthly in an escrow account, hold the money, and pay the tax bill and insurance premium when they are due. That smooths out large annual bills but means the amount you send each month is larger than the loan payment alone. The escrow portion can change from year to year as taxes and premiums are reassessed.

A common surprise is that the first-year estimate is too low: property taxes can jump after a purchase when the home is reassessed, and insurance premiums have been rising in many markets. Leaving a small cushion in your budget is prudent.

How to estimate taxes and insurance

For property tax, the most reliable source is the county assessor’s page for the address, or the tax figure shown on a listing. As a rough check, annual property tax often lands around 1%–1.5% of the home value, but rates vary widely by state and county.

For insurance, request a quote for the specific address and construction type. A starting range for a typical single-family home is about $1,200–$2,000 per year, but coastal, wildfire-prone or high-value homes can cost several times that. Condo owners may pay a lower individual policy because the HOA master policy covers part of the structure.

PMI and when it ends

Private mortgage insurance protects the lender if you default. It is usually required when the loan-to-value ratio is above 80% — that is, when the down payment is below 20%. PMI is typically charged as an annual percentage of the original loan balance, often between 0.3% and 1.5%, divided into monthly payments.

PMI does not last forever. It can generally be removed when the balance reaches 80% of the original home value, and for many loans the federal Homeowners Protection Act requires automatic termination at 78%. The calculator shows the scheduled payment where 80% LTV is reached; paying extra principal or a higher appraisal can get you there sooner. Use the extra payment calculator to see how much earlier that could be.

Check the amortization too

PITI tells you what you pay each month; an amortization schedule tells you where the money goes over time. The “Full amortization schedule” link in the results carries your loan amount, rate and term into the amortization schedule calculator, or you can open the printable schedule for a paper copy.

Frequently asked questions

What does PITI stand for?

PITI stands for Principal, Interest, Taxes and Insurance. It is the four-part monthly payment most US homeowners make: principal reduces the loan balance, interest is the lender’s charge, taxes are property taxes collected for the local government, and insurance is the homeowners policy premium. HOA dues and mortgage insurance (PMI) are often added on top.

Why is my mortgage payment higher than the calculator’s principal and interest?

Principal and interest only cover the loan itself. Your lender usually collects property taxes and homeowners insurance monthly in an escrow account, then pays the bills when they come due. If your down payment was below 20%, PMI may also be added. The PITI total here includes all of those pieces, but not utilities, maintenance or closing costs.

How do I estimate property tax and insurance?

For property tax, check the county assessor’s website or the listing for the annual tax amount; a rough rule of thumb is 1%–1.5% of the home’s value per year depending on the state. For insurance, get a quote for the address — a common starting range is $1,200–$2,000 a year for a single-family home, but coastal, wildfire or high-value properties can be much higher.

When does PMI go away?

PMI is usually required when the down payment is below 20% (loan-to-value above 80%). It can typically be removed when the balance reaches 80% of the original home value, either through scheduled payments or an earlier appraisal, and the federal Homeowners Protection Act requires automatic termination at 78% of the original value for many loans. The calculator shows the payment where 80% LTV is reached on the scheduled schedule.

Does the calculator include HOA dues?

Yes, if you enter them. HOA dues are not part of PITI in the strict sense, but lenders include them in the debt-to-income ratio and they are part of your real monthly cost, so the total here adds them in when you provide an amount.

Is this the same payment my lender will quote?

It is an estimate. Lenders may use a different tax or insurance figure, add mortgage insurance at a different rate, round payments to the cent, or include fees we do not model. Use this page to understand the structure and to sanity-check a Loan Estimate, not as a substitute for one.

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