Mortgage Calculator
The payment a lender quotes is rarely the payment you make. This adds property tax and insurance to principal and interest, so you see the whole monthly figure.
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How it works
A mortgage payment has up to four parts, often shortened to PITI: principal, interest, taxes and insurance. Lenders advertise the first two; the last two are collected alongside them and can add a fifth or more to the monthly total.
The loan itself is a standard amortising loan on the price less your deposit. Tax and insurance are annual figures, so they are simply divided by twelve and added on — they do not accrue interest.
Monthly = EMI(price − deposit, r, n) + tax ÷ 12 + insurance ÷ 12
- Price — the agreed purchase price of the property
- Deposit — your down payment — the part you are not borrowing
- r — the monthly interest rate (annual rate ÷ 12 ÷ 100)
- n — the number of monthly payments (years × 12)
Worked example
A 400,000 home with 80,000 down at 6.5% over 30 years, 4,800 annual tax and 1,200 insurance
Inputs
Results
Tax and insurance add 500 a month here — very close to a quarter of the payment, and entirely absent from the rate comparison sites.
Frequently asked questions
Why is my quoted payment lower than this?
Because most quotes show principal and interest only. Escrowed property tax and insurance are collected with the payment but excluded from the headline figure. This calculator shows both so the comparison is honest.
How large a deposit should I put down?
Beyond reducing the loan, many lenders drop mortgage insurance once your deposit reaches 20% of the price. Try 20% against your intended figure to see the difference in both the payment and the total interest.
Does this include mortgage insurance or HOA fees?
Not separately — add them to the annual insurance field if they apply to you. They behave the same way: a fixed annual amount spread across twelve payments.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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