A mortgage calculator with PMI and taxes shows a very different number than a basic P+I calculator — and the gap is larger than most buyers expect. On a $350,000 home purchased with 10% down, private mortgage insurance (PMI) can add roughly $158 per month and property taxes add another $263. Together, those two line items increase your monthly payment by $421 before you account for homeowners insurance — yet most simplified online calculators show you only the principal and interest figure.
Use the Mortgage Calculator → to enter your purchase price, down payment, and tax rate and see your full PITI payment — principal, interest, taxes, and insurance — in one number.
What PITI means and why all four components matter
PITI is the acronym lenders use for the four parts of a fully loaded mortgage payment:
Lenders use PITI to calculate your debt-to-income ratio (DTI), not just P+I. The CFPB and most lenders use 43% DTI as a common benchmark for mortgage approval (Consumer Financial Protection Bureau); conventional loans backed by Fannie Mae and Freddie Mac can approve up to 45–50% DTI with strong compensating factors through automated underwriting. If you estimate your payment using only principal and interest, you may qualify on paper. Then the lender's approval comes back based on the higher, PITI-inclusive figure — and the monthly obligation is larger than you planned for.
PMI: what it is, what it costs, and when it ends
Private Mortgage Insurance protects the lender — not you — if you default. Lenders require it when your down payment is less than 20% of the purchase price, because below that threshold the loan-to-value ratio (LTV) is high enough that a drop in home prices could leave the lender underwater. You pay the premium; the lender collects the benefit.
PMI cost: PMI typically costs 0.46% to 1.5% of your loan amount annually (Bankrate, 2026). The exact rate depends on your credit score, loan-to-value ratio, loan type, and the insurer. A borrower with a 760+ credit score putting 10% down might pay near the low end (around 0.46–0.60%). A borrower with a 660 score putting 5% down can pay 1.0–1.5%.
Example: $315,000 loan amount (10% down on $350K), illustrative PMI rate 0.60% for a 720-score borrower at 90% LTV:
```
Annual PMI = $315,000 × 0.60% = $1,890
Monthly PMI = $1,890 ÷ 12 = $157.50 ≈ $158
```
When does PMI end? Under the Homeowners Protection Act of 1998 (CFPB), lenders must:
On a $350,000 home with 10% down ($315,000 loan), PMI cancels automatically when your balance falls to $273,000 (78% × $350,000). At a 6.5% rate on a 30-year term, that takes approximately 9 years if you make only minimum payments. Making extra principal payments accelerates the timeline — use the Mortgage Calculator to model how additional payments shrink your PMI window.
Property taxes in your mortgage payment
Property taxes are not optional — they are collected by your county or municipality and, if unpaid, can result in a tax lien that ranks ahead of your mortgage. Most lenders require you to pay property taxes through an escrow account: the lender adds 1/12 of your annual tax bill to each monthly payment, holds it in escrow, and pays the tax authority when the bill comes due.
Average US effective property tax rate: approximately 0.9% of assessed home value (ATTOM, 2025). Rates vary enormously by state — from 0.27% in Hawaii to 2.23% in New Jersey (Tax Foundation, 2024).
Example at the national average:
```
Annual property tax = $350,000 × 0.9% = $3,150
Monthly tax escrow = $3,150 ÷ 12 = $262.50 ≈ $263
```
That $263 per month leaves your account as part of the mortgage payment but goes to the county, not to reducing your loan balance.
Using a mortgage calculator with PMI and taxes: $350,000 home, 10% down, 6.5% rate
Here is the complete math for a common scenario — a $350,000 home purchase with 10% down, using a 6.5% 30-year fixed rate. This is close to the Freddie Mac PMMS weekly average of 6.47% for June 19, 2026 — check Freddie Mac PMMS for the current week's rate. Homeowners insurance is estimated conservatively at 0.5% of home value — the low end of the typical range; current national averages run 0.75–0.85% in most markets (Bankrate, 2026):
| Component | Calculation | Monthly amount |
|---|---|---|
| Principal + Interest | $315,000 loan, 6.5%, 30yr | $1,991 |
| Property tax (0.9% avg) | $350,000 × 0.9% ÷ 12 | $263 |
| Homeowners insurance | $350,000 × 0.5% ÷ 12 | $146 |
| PMI (0.60%, illustrative) | $315,000 × 0.60% ÷ 12 | $158 |
| Total PITI | $2,558 |
The P+I figure alone ($1,991) understates your actual monthly obligation by $567 — a 28% gap. Budget on P+I alone and you are $567 short every month from day one.
Example calculation for P+I (to verify your calculator output):
```
Monthly rate = 6.5% ÷ 12 = 0.5417%
n = 360 payments (30 years × 12)
P+I = $315,000 × [0.005417 × (1.005417)^360] ÷ [(1.005417)^360 − 1]
P+I ≈ $315,000 × 0.006321 = $1,991
```
Run your actual numbers in the Mortgage Calculator → — enter your price, down payment, term, and estimated tax rate to get a PITI figure you can take to the bank.
How PMI + taxes change with different down payments
The down payment is the lever that controls both your LTV and whether PMI applies at all. Here is what the same $350,000 home looks like at four common down payment levels, all at 6.5% / 30-year, using 0.9% property tax and illustrative PMI rates for a 720-credit-score borrower (actual rates range 0.46–1.5% — Bankrate, 2026):
| Down payment | Loan amount | P+I | PMI (illus.) | Tax + Ins | Total PITI |
|---|---|---|---|---|---|
| 5% ($17,500) | $332,500 | $2,102 | $222 | $409 | $2,733 |
| 10% ($35,000) | $315,000 | $1,991 | $158 | $409 | $2,558 |
| 15% ($52,500) | $297,500 | $1,880 | $99 | $409 | $2,388 |
| 20% ($70,000) | $280,000 | $1,770 | $0 | $409 | $2,179 |
Tax + Ins = property tax $263 + homeowners insurance $146 = $409/month (constant across scenarios).
Moving from 5% to 20% down cuts your monthly payment by $554 — $332 in lower P+I plus $222 in eliminated PMI. That $554/month difference is the financial argument for saving toward a larger down payment. If you want to model how long it takes to save to 20%, the Savings Goal Calculator lets you set a dollar target and a monthly contribution to find your timeline.
Three scenarios where PMI math gets complicated
1. Lender-paid PMI (LPMI). Some lenders offer to absorb the PMI cost in exchange for a higher interest rate. The rate bump varies by lender and loan size, but the effect is permanent — unlike borrower-paid PMI, you cannot cancel it once you hit 80% LTV. If you sell or refinance within 5–7 years, LPMI can be cheaper than paying borrower PMI over that window. Run both scenarios in the Mortgage Calculator with the rate adjustment before deciding.
2. FHA loans. FHA mortgage insurance is not the same as conventional PMI. FHA charges an upfront MIP of 1.75% of the loan added to the balance at close, plus an annual MIP of 0.15%–0.75% depending on loan amount, term, and LTV. Per HUD Mortgagee Letter 2023-05 (HUD, 2023), those rates were reduced effective March 2023. Unlike conventional PMI, FHA annual MIP does not automatically cancel at 80% LTV if your down payment was less than 10% — it runs for the life of the loan. This is a meaningful cost difference for first-time buyers choosing between FHA and conventional financing.
3. Piggyback loans (80-10-10). Some buyers use a second mortgage (typically a home equity line) to cover the 10% gap between their 10% down payment and the 20% conventional threshold — eliminating PMI entirely. The second mortgage carries a higher rate than the first. As of June 2026, Bankrate data shows average HELOC rates at approximately 7.47% — roughly 1 percentage point above the prevailing 30-year fixed rate (Bankrate, 2026). The math only works if the PMI savings exceed the second mortgage's extra interest cost. This typically favors buyers with strong credit who qualify for competitive HELOC rates.
What your lender's pre-approval is and isn't telling you
A pre-approval letter states a maximum loan amount based on P+I, taxes, and insurance — the full PITI. But the property tax input in the lender's model is an estimate based on state or county averages. If you buy a home with higher-than-average property taxes — New Jersey (2.23%) and Illinois (2.07%) both run more than double the national average per the Tax Foundation — your actual PITI will exceed the estimate even at the same loan amount.
Before making an offer, look up the property's most recent tax bill on the county assessor's website. That figure, divided by 12, is your actual monthly escrow — not the national average. Feed that real number into the Mortgage Calculator alongside your rate quote to see whether your payment stays inside your budget. If you are weighing renting versus buying, the Rent vs Buy Calculator accounts for property taxes and insurance in its break-even model. The comparison uses full PITI costs on the ownership side.
Practical takeaways
Ready to see your full PITI payment? Use the Mortgage Calculator → as a mortgage calculator with PMI and taxes — enter your down payment and estimated tax rate, and see whether PMI applies and what your complete monthly obligation looks like.