Mortgage calculator with PMI and taxes

Published and reviewed: October 2, 2026 · Maintained by: WealthScope Hub

What this calculator counts

This is a first-month planning estimate for a fixed-rate, fully amortizing conventional purchase mortgage. It adds principal and interest, property taxes, homeowners insurance, any monthly borrower-paid PMI entered, and HOA dues. The main number is a housing budget, not necessarily the amount you send to your lender. The Consumer Financial Protection Bureau (CFPB) explains that taxes and insurance are often collected through escrow, while HOA dues are usually paid separately. If there is no escrow, you still need to budget for those bills even though they are not part of the lender's monthly debit.

Enter the interest rate on the note, not APR. APR can reflect additional finance costs and does not belong in this principal-and-interest payment formula. Enter the property's expected annual tax and insurance bills rather than assuming a national average. A seller's current tax bill may not match your future bill, so ask the local assessor about the property and use an insurance quote. The CFPB Loan Estimate explainer shows where lenders disclose projected payments, escrow, mortgage insurance and cash to close.

How the monthly amount is calculated

Loan amount equals home price minus the down payment. For a fixed-rate loan, monthly principal and interest are L × r / (1 - (1 + r)^(-n)), where L is the initial loan amount, r is the annual note rate divided by 12, and n is the number of monthly payments. At 0% interest, the payment is simply L / n. Annual tax and insurance figures are each divided by 12. The sample PMI percentage is applied to the original loan amount and divided by 12; a lender's monthly PMI quote is used directly instead. Finally, monthly HOA dues are added to the housing budget.

With the example shown above, a $400,000 home and 10% down payment create a $360,000 loan. At an illustrative 6.5% fixed note rate over 30 years, principal and interest are about $2,275.44 a month. Annual taxes of $4,800 add $400; insurance of $1,800 adds $150; and a 0.5% illustrative PMI rate on the original loan adds $150. With no HOA dues, the monthly budget is about $2,975.44. These inputs illustrate the math, not available loan pricing or a tax estimate for your address.

PMI is a quote, not a universal rate

On many conventional purchases below 20% down, private mortgage insurance raises the monthly cost. It protects the lender, not the homeowner. Actual premiums depend on the offer and borrower; 0.5% is only an editable example. Select “Use lender's monthly quote” when you have a Loan Estimate. If you choose “No monthly PMI” with less than 20% down, the result excludes it but flags that the lender may require it. At 20% down or more, the example-rate mode assumes no monthly conventional PMI. A quoted amount is honored even then, because the lender's actual documents should take precedence over an automatic guess. These distinctions follow the CFPB's mortgage insurance guidance.

This tool does not forecast a PMI cancellation date or lifetime premium. The CFPB describes request and automatic termination rules that depend on the loan and borrower meeting conditions; the applicable “original value” may not simply equal the price typed into a calculator. FHA mortgage insurance premiums (MIP), USDA and VA program charges follow different rules and are not modeled here. Ask for the correct program-specific figures rather than substituting this PMI example.

What is missing from the number

The result is not an affordability verdict or lender approval. It leaves out closing costs, prepaid insurance and tax deposits, points, maintenance, utilities, flood insurance, special assessments, rate changes, and any lender-specific mortgage insurance structure. It assumes tax and insurance costs remain at the amounts entered; real bills and escrow payments can change. The down payment shown is not cash to close. Read the “Projected Payments,” “Estimated Taxes, Insurance & Assessments,” and “Estimated Cash to Close” sections of a written Loan Estimate before committing to a purchase. The CFPB's comparison guide also warns against judging two lenders by different tax or insurance guesses.

Already own the property and want to see the effect of extra principal? Use the separate mortgage extra payment calculator. To test how a proposed housing cost interacts with recurring debt, use the debt-to-income ratio calculator. The pre-homebuying debt guide covers the cash-versus-debt tradeoff. These pages answer different questions; none is a mortgage offer.

Sources and review

• CFPB: principal and interest versus total monthly payment.
• CFPB: Loan Estimate explainer and comparing written offers.
• CFPB: mortgage insurance basics and PMI cancellation conditions.

WealthScope Hub maintains this tool and documents its formula and exclusions here. We do not claim a licensed mortgage professional reviewed individual results. Corrections can be sent to wangsuperyu@outlook.com; read our editorial policy. Inputs run in your browser and are not sent to our server by this calculator.

Educational planning estimate only, not lending, tax, legal, insurance or personalized financial advice. Confirm taxes, premiums, escrow treatment and loan terms in your own documents. See the disclaimer.