What it really costs to own a home
The mortgage is only part of the cost. Owners also pay property tax, insurance, utilities, maintenance and sometimes HOA dues.
The formula
Monthly cost = mortgage + property tax + insurance + utilities + maintenance + HOA
Worked example
A $2,023 mortgage with $300 of tax, $200 of insurance, $300 of utilities, $333 of maintenance and no HOA dues costs $3,156 a month.
How to use this calculator
Enter the home’s value, then each cost: mortgage principal and interest, property tax, home insurance, HOA dues, utilities and maintenance. Leave HOA at zero if the home has none. The cost of homeownership calculator adds them into one true monthly cost and also shows the yearly total, the costs beyond the mortgage, maintenance per month and the income needed to keep housing at 28% of income. Check the label on each field to see whether it expects a monthly or a yearly figure.
What the result means
The total is what the home takes from your budget each month, not just what the lender collects. In the example above, the mortgage is $2,023 and the other costs add $1,133. That is 36% of the total, and a buyer who planned only for the loan payment would be short by that amount every month.
| Cost | Monthly | Share of total |
|---|---|---|
| Mortgage | $2,023 | 64.1% |
| Property tax | $300 | 9.5% |
| Insurance | $200 | 6.3% |
| Utilities | $300 | 9.5% |
| Maintenance | $333 | 10.6% |
| Total | $3,156 | 100% |
Over a year the example comes to $37,872.
Where the example numbers come from
- Mortgage. A $320,000 loan at an example rate of 6.5% over 30 years has a payment of about $2,023. That is a $400,000 home with 20% down.
- Property tax. $300 a month is $3,600 a year, or 0.9% of $400,000. That is close to the recent national average effective rate, and rates vary by state.
- Maintenance. $333 a month is about $4,000 a year, which is 1% of the home’s value.
More examples
Small changes to the smaller lines move the total more than you might expect.
| Scenario | Monthly cost |
|---|---|
| Example as above | $3,156 |
| Add $250 of HOA dues | $3,406 |
| Maintenance at 2% of value ($667) | $3,490 |
| Both changes | $3,740 |
What changes the result
- Loan size and rate. These set the mortgage, which is the largest line.
- Location. Property tax and insurance depend heavily on the state and county.
- Age and size of the home. Older and larger homes cost more to maintain and to heat and cool.
- HOA dues. They add a fixed monthly cost that the owner does not control.
Common mistakes
- Budgeting for the mortgage payment alone.
- Setting maintenance to zero because nothing is broken yet.
- Using the seller’s utility bills without allowing for your own use.
- Forgetting that tax and insurance tend to rise while a fixed-rate payment stays the same.
- Leaving out HOA dues on a condo or townhouse.
Related calculators
Get each line from its own tool: the loan payment from the mortgage calculator, the tax from the property tax calculator and the upkeep from the home maintenance cost calculator. To weigh the total against renting, use the rent vs buy calculator.
Frequently asked questions
How much should I budget for maintenance?
A common rule is 1% to 2% of the home’s value each year.
Which costs rise over time?
Property tax, insurance and utilities. A fixed-rate mortgage payment does not.
Are any costs tax deductible?
Mortgage interest and property tax can be if you itemize, within limits.
Does this include private mortgage insurance?
Not as a separate line. If your loan has PMI, add it to the mortgage amount. PMI commonly costs about 0.3% to 1.5% of the loan per year.
Are closing costs part of the cost of owning?
They are a one-time cost of buying, commonly 2% to 5% of the loan, so they are not in the monthly figure. Budget for them separately.
How much does home insurance cost?
The national average is about $2,490 a year in 2026 for $400,000 of dwelling coverage, or about $207.50 a month. It varies widely by state.
Is the monthly cost the same every year?
No. A fixed-rate mortgage payment holds steady, but tax, insurance, utilities and repair bills change, so update the numbers each year.