Your real mortgage payment is principal and interest plus property tax, homeowners insurance, and PMI if you put down less than 20%. This calculator uses Texas's average property-tax rate and insurance cost so the number you see is close to what a lender will quote. Change any field and the payment updates instantly.
Mortgage payment
Lenders use a fixed-payment formula: the loan amount multiplied by the monthly rate, divided by one minus (1 + monthly rate) to the power of negative months. That gives principal and interest. Escrow items — property tax and insurance — are divided by 12 and added on top. If your down payment is under 20%, private mortgage insurance is added until you reach 20% equity.
Property tax is the piece most people underestimate. It varies from under 0.5% of home value a year in some states to over 2% in others, which can move a payment by several hundred dollars a month on the same house.
Mortgage payment
Principal and interest, property tax (defaulted to the Texas average, editable), homeowners insurance, PMI when the down payment is below 20%, and HOA dues. It also shows total interest over the life of the loan and your payoff date.
Mortgage payment
Most lenders want your total monthly debt, including the new mortgage, at or below 43% of gross income, and prefer 36%. Divide the payment shown by 0.36 to see the monthly gross income that keeps you in the comfortable zone, or use the home affordability calculator below.
Worked example
On a $400,000 home with 20% down at 6.5% for 30 years, principal and interest is $2,023. Add about $367 in property tax at 1.1% and $158 for insurance and the real payment is around $2,548 a month — roughly 25% more than the loan payment alone.
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Last reviewed September 09, 2026. Methodology: standard amortization formula; mortgage payment defaults use Texas averages and should be replaced with your own quotes. Estimates only — not financial advice or a loan offer.
