Mortgage Calculator: Monthly Payment With Taxes
Use this mortgage calculator to estimate your monthly payment: enter the home price, down payment, interest rate and term, plus property taxes and insurance.
Mortgage payment formula
Principal and interest on a fixed-rate mortgage:
Payment = L × r ÷ (1 − (1 + r)^−n)
where L is the loan amount (price minus down payment), r the annual rate ÷ 12 and n the number of months. The calculator then adds your monthly property taxes, homeowners insurance and HOA dues to show the total monthly housing cost.
Mortgage calculator example
A $400,000 home with 20% down means a $320,000 loan. At 6.5%:
| Term | Principal & interest | Total interest |
|---|---|---|
| 30 years | $2,022.62 | ≈ $408,100 |
| 15 years | $2,787.54 | ≈ $181,800 |
Add about $600 a month for taxes and insurance and the 30-year total monthly cost is roughly $2,620. The 15-year loan costs $765 more each month but saves over $226,000 in interest.
Tips before you apply
- Follow the 28/36 rule: housing costs under 28% of gross income, total debt under 36%.
- Aim for 20% down to avoid PMI on a conventional loan.
- Get multiple quotes — even 0.25 percentage points makes a big difference over 30 years.
- Budget closing costs of roughly 2%–5% of the loan.
- Rent or buy? Test both scenarios with the rent vs buy calculator.
Walk through pre-approval, loan types and closing in how to get a mortgage, and boost your rate with how to improve your credit score.
Frequently Asked Questions
How much house can I afford?
A common rule is to keep total housing costs under about 28% of gross monthly income and all debt payments under about 36%.
What is PMI?
Private mortgage insurance is usually required on conventional loans when the down payment is below 20%. It typically costs 0.3%–1.5% of the loan per year and can be removed once you reach 20% equity.
15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but a lower rate and far less total interest. A 30-year loan keeps payments lower and more flexible.
What is included in a mortgage payment?
Principal and interest, plus — if you have an escrow account — property taxes, homeowners insurance and any PMI.
This content is for general information only and is not investment advice. Consider your own situation and consult a licensed professional before making financial decisions.