Louisiana Mortgage Calculator (with Louisiana Property Taxes & Insurance)

Louisiana consistently ranks among the states with the lowest effective property tax burdens in the country, and this calculator reflects that with a baked-in 0.55% effective rate applied to the home's purchase price. That low rate is a meaningful part of Louisiana's overall cost of homeownership, and it is the main reason a Louisiana PITI payment can look noticeably lighter than the same loan amount and rate would produce in a higher-property-tax state.

This calculator combines a standard 30-year fixed-rate amortization schedule with a Louisiana-specific property tax estimate and a flat monthly insurance placeholder to produce a full PITI (principal, interest, taxes, insurance) monthly payment, not just the loan-only payment that a generic mortgage calculator would show.

1. Down payment and loan principal. The down payment percentage is applied to the home price to determine cash down, and the remainder becomes the loan principal: $\text{Principal} = \text{Price} \times (1 - \text{Down\%})$.
2. Principal and interest. The loan principal is amortized over a fixed 360-month (30-year) term using the standard formula $A = P \times \frac{i(1+i)^n}{(1+i)^n - 1}$, where $i$ is the monthly rate (annual APR divided by 12) and $n = 360$.
3. Property tax estimate. Louisiana's statewide effective property tax rate is modeled at 0.55% of the home's purchase price, applied annually and divided by 12 for a monthly figure: $\text{Monthly Tax} = \text{Price} \times 0.0055 / 12$.
4. Insurance estimate. A flat $125 monthly placeholder represents a typical homeowners insurance premium; actual premiums in Louisiana vary significantly by parish due to hurricane and flood exposure.
5. Total monthly PITI. Principal and interest, monthly property tax, and monthly insurance are summed to produce the full housing payment.

The amortization portion runs a complete period-by-period schedule using decimal-precision math, tracking the interest and principal split at every one of the 360 payments so that cumulative totals reconcile exactly to the penny against the total interest figure.

Using the default scenario: a $380,000 home, 20% down, and a 6.5% APR 30-year fixed loan.

1. Down payment: $380,000 \times 20\% = \$76,000$.
2. Loan principal: $380,000 - \$76,000 = \$304,000$.
3. Principal and interest: amortizing $304,000 at 6.5% over 360 months yields a monthly payment of approximately $1,921.48.
4. Property tax: $380,000 \times 0.55\% / 12 = \$174.17$ per month.
5. Insurance: a flat $125 per month.
6. Total PITI: $1,921.48 + \$174.17 + \$125 = \$2,220.65$ per month.
7. Total interest over 30 years: amortizing $304,000 at 6.5% for 360 months produces roughly $387,700 in cumulative interest, more than the original principal, which is typical for a 30-year fixed loan at this rate.

Compare this to a buyer who budgets only the principal-and-interest figure from a generic calculator: at $1,921.48, they would underestimate their true monthly housing cost by nearly $300 once Louisiana property tax and insurance are added in, even with the state's comparatively favorable tax rate.

• Parish-level millage variation. Louisiana property tax is actually assessed and collected at the parish level using local millage rates applied to assessed value, not a single statewide flat percentage. The 0.55% figure here is a statewide effective-rate approximation; actual bills vary meaningfully between, for example, Orleans Parish and a rural parish.
• The Louisiana homestead exemption. Owner-occupied primary residences in Louisiana are eligible for a homestead exemption that shields the first $75,000 of assessed value from parish general property tax, often substantially lowering the real tax bill below what a simple percentage-of-price estimate would suggest.
• Flood and hurricane insurance. Louisiana homeowners, particularly in coastal and flood-zone parishes, frequently need separate flood insurance and higher windstorm coverage well above a flat $125 monthly estimate.
• PMI (private mortgage insurance). Down payments below 20% typically require PMI, which is not modeled in this calculator's PITI figure.
• HOA dues, closing costs, and points. None of these are included in the monthly payment estimate shown here.

• Assuming Louisiana's low property tax rate applies uniformly. Millage rates differ by parish, school district, and levee district, so the effective rate on a specific property can be meaningfully above or below the 0.55% statewide approximation used here.
• Forgetting the homestead exemption when comparing bills. A homeowner's actual first-year tax bill on an owner-occupied home is often lower than a naive price-times-rate calculation because of the $75,000 exemption on assessed value.
• Underestimating insurance costs in flood-prone parishes. The flat $125 estimate is a rough national-style placeholder and can be far below actual premiums along the Gulf Coast.
• Comparing PITI across states without adjusting insurance assumptions, since Louisiana homeowners insurance costs, driven by hurricane risk, run meaningfully higher than the national average in many parishes.
• Ignoring PMI when putting down less than 20%, which adds a real monthly cost not reflected in the base PITI total shown by this calculator.

• Louisiana Tax Commission: Statewide property assessment ratios and effective tax rate data.
• Louisiana Revised Statutes, Title 47: Homestead exemption provisions for owner-occupied residential property.
• Consumer Financial Protection Bureau: PITI and mortgage disclosure guidance under Regulation Z and RESPA.
• Tax Foundation: Comparative state and local effective property tax rate rankings.