Loans & Mortgages
Total monthly payment
Adds the escrow and fee components to principal and interest.
The Formula
Total = P&I + tax/12 + insurance/12 + PMI + HOA
Adds the escrow and fee components to principal and interest.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| Tx | Property tax | currency | Annual property tax. |
| In | Insurance | currency | Annual home insurance premium. |
What Each Symbol Means
Txcurrency
Property tax
Annual property tax.
Incurrency
Insurance
Annual home insurance premium.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate a mortgage payment page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate A Mortgage Payment, filed under Finance. Every number the guide produces comes from substituting into this one line.