PITI Calculator
Calculate your full monthly housing payment: principal and interest plus property tax, homeowners insurance, and optional PMI.
How to use this tool
- Enter your loan amount, rate, and term for principal and interest.
- Enter your annual property tax and homeowners insurance.
- Add annual PMI if your down payment is under 20%.
- Read your total PITI and each component broken out.
Your real mortgage payment is more than principal and interest. PITI adds property tax, homeowners insurance, and PMI. Enter your loan and annual costs to see the full monthly payment lenders use to qualify you.
Formula
Principal & interest = P · r / (1 − (1 + r)−n), with r = APR ÷ 12 and n = years × 12.
Monthly tax = annual property tax ÷ 12 | Monthly insurance = annual premium ÷ 12 | Monthly PMI = annual PMI ÷ 12.
PITI = principal & interest + tax + insurance + PMI.
How it works
PITI is the true monthly cost of owning a home: Principal, Interest, Taxes, and Insurance. Lenders use PITI rather than just principal and interest to qualify borrowers, because property taxes and insurance are real, recurring obligations usually collected into an escrow account and paid on your behalf. The calculator amortizes the loan for principal and interest, then adds the monthly twelfths of your annual tax, insurance, and any private mortgage insurance.
Private mortgage insurance (PMI) is typically required when your down payment is under 20% and can usually be cancelled once you reach about 20% equity, which is why it is a separate, optional field here. This estimate uses simple annual-to-monthly division; actual escrow amounts can change yearly as tax assessments and premiums change, and HOA dues (not part of PITI) would be additional.
Reviewed by the AbraCalc Mortgage Desk. Educational estimate only, not financial advice; your lender's escrow analysis determines the exact monthly tax and insurance amounts.
Worked example
$250,000 at 6% over 30 yrs, $3,000 tax, $1,200 insurance
- Monthly rate r = 6% ÷ 12 = 0.005; n = 360.
- Principal & interest = 250,000 × 0.005 ÷ (1 − 1.005^−360) = $1,498.88.
- Monthly property tax = 3,000 ÷ 12 = $250.00.
- Monthly insurance = 1,200 ÷ 12 = $100.00; PMI = $0.
- PITI = 1,498.88 + 250 + 100 + 0 = $1,848.88.
PITI = $1,848.88 (P&I $1,498.88 + tax $250.00 + insurance $100.00)
PITI on a $250,000 30-yr loan at 6% by tax/insurance
| Principal & interest | Monthly tax | Monthly insurance | PITI |
|---|---|---|---|
| $1,498.88 | $200.00 | $75.00 | $1,773.88 |
| $1,498.88 | $250.00 | $100.00 | $1,848.88 |
| $1,498.88 | $333.33 | $125.00 | $1,957.21 |
| $1,498.88 | $500.00 | $166.67 | $2,165.54 |
Key terms
- PITI
- The full monthly housing payment: Principal, Interest, Taxes, and Insurance.
- Escrow
- An account your lender uses to collect monthly tax and insurance and pay those bills when due.
- PMI
- Private mortgage insurance, usually required with less than 20% down and cancellable near 20% equity.
- Principal & interest
- The portion of the payment that repays the loan and its interest, excluding tax and insurance.
Frequently asked questions
- What does PITI stand for?
- Principal, Interest, Taxes, and Insurance — the four parts of a typical monthly mortgage payment. Lenders use the full PITI, not just principal and interest, to assess affordability.
- Is PMI always part of PITI?
- PMI is included when it applies — generally when your down payment is below 20%. Once you reach about 20% equity you can usually have PMI removed, lowering your PITI.
- Does PITI include HOA fees?
- No. Homeowners association dues are a separate cost. Lenders consider them in affordability, but they are not part of the PITI payment collected in your escrow account.