PITI Calculator
Calculate your true monthly mortgage payment, not just principal and interest. PITI adds the property taxes and homeowners insurance your lender collects each month, plus optional PMI and HOA dues. Start from a home price and down payment (so the calculator derives the loan, your equity, and auto PMI) or enter the loan directly. You also get the total interest over the life of the loan and an optional debt-to-income affordability check.
Formula
Worked example
A 400,000 home with 20% down leaves a 320,000 loan. At 6.5% over 30 years the monthly principal and interest is about 2,022.62. Add property tax of 4,400 / 12 = 366.67 and insurance of 1,600 / 12 = 133.33, for a total PITI of about 2,522.62 per month with no PMI (20% down) and no HOA. Over the full term the loan costs roughly 408,000 in interest.
What PITI means
PITI stands for principal, interest, taxes, and insurance, the four parts of a typical monthly mortgage payment. Principal and interest repay the loan itself on a fixed amortization schedule. Taxes and insurance are collected by the lender into an escrow account and paid out on your behalf when the property tax and homeowners insurance bills come due. Many calculators show only principal and interest, which understates what you actually pay each month. This tool adds the escrow items, plus optional PMI and HOA dues, so the total reflects your real housing cost.
Two ways to start: home price or loan amount
You can begin from a home price and down payment, or enter the loan amount directly. In price mode the calculator subtracts your down payment (a percent or a dollar amount) to get the loan, then works out your loan-to-value (LTV) ratio. LTV matters because it drives PMI: on a conventional loan, lenders require private mortgage insurance whenever the loan is more than 80% of the value, so the auto PMI setting adds it only when your equity is under 20%. Knowing the home value also lets you express property tax and insurance as a rate of the value, which is handy when you only know the local mill rate or a typical insurance percentage rather than an exact bill.
How the calculator builds each component
Principal and interest come from the standard amortization formula, using your loan amount, the monthly rate (annual rate divided by 12), and the number of payments (years times 12). The monthly property tax and insurance are the annual amounts divided by 12; you can enter each as a flat yearly bill or as a percent of the home value. PMI, when it applies, is the loan balance multiplied by the annual PMI rate and divided by 12. HOA dues, if your community charges them, are added as a flat monthly amount. Summing all of these gives your total monthly PITI. The calculator also multiplies the principal and interest payment across every month and subtracts the loan to show the total interest you will pay over the term.
Why lenders care about PITI and your DTI
Lenders qualify you on the full PITI payment, not just principal and interest, because taxes and insurance are unavoidable costs of owning the home. They compare PITI against your gross monthly income through the front-end debt-to-income ratio, and PITI plus your other debts through the back-end ratio. A common guideline keeps the front-end ratio at or below 28% and the back-end ratio at or below 36% to 43%, depending on the loan program. Turn on the affordability check to enter your gross monthly income and see your front-end DTI instantly. Knowing your real PITI up front helps you set a realistic price range and avoid being surprised when escrow is added at closing. These figures are estimates; confirm the actual tax assessment and insurance premium before you rely on them.
PITI rules of thumb
| Item | Typical figure | Notes |
|---|---|---|
| Front-end DTI (housing) | 28% or less | PITI divided by gross monthly income |
| Back-end DTI (all debt) | 36% to 43% | PITI plus other monthly debts |
| PMI threshold | LTV over 80% | Down payment under 20% on conventional loans |
| PMI cancellation | LTV reaches 78% | Automatic by the original amortization schedule |
| Property tax rate | ~1.1% of value | U.S. average; ranges from under 0.3% to over 2% |
| Homeowners insurance | ~0.3% to 0.5% | Of home value per year, varies by region and risk |
General guidelines lenders use. Programs and local rates vary, so treat these as starting points.
Frequently asked questions
What does PITI include?
PITI includes the principal and interest on your loan plus the property taxes and homeowners insurance your lender collects through escrow. Many lenders also fold in private mortgage insurance (PMI) and, where applicable, HOA dues when assessing affordability, which this calculator lets you add.
Is PMI part of PITI?
PMI is not one of the four letters in PITI, but it is added to the same monthly payment when your down payment is under 20%. It protects the lender, not you, and can usually be cancelled once you reach 20% equity. This calculator includes an optional PMI field so the total reflects it when it applies.
How is the monthly property tax calculated?
Take your annual property tax bill and divide by 12. The lender deposits that amount into escrow each month and pays the tax authority when the bill is due. If you only know the local rate, switch property tax to a percent of home value: the U.S. average is about 1.1%, but it ranges from under 0.3% to over 2% by county.
Should I enter a home price or a loan amount?
Either works. If you know the purchase price and your down payment, use price mode so the calculator derives the loan, your loan-to-value ratio, and auto PMI for you. If you already know your exact loan amount, switch to loan mode and skip the price and down payment fields.
How much income do I need for this payment?
Lenders often want your housing payment (PITI) to stay at or below about 28% of gross monthly income, and your total debt payments at or below 36% to 43%. Turn on the affordability check, enter your gross monthly income, and the calculator shows your front-end debt-to-income ratio against that 28% guideline.