PITI Calculator
Calculate Principal, Interest, Taxes, and Insurance for your monthly mortgage payment
Calculate PITI Payment
Home price minus down payment
Mortgage repayment period
Annual mortgage interest rate
Yearly property tax amount
Yearly homeowners insurance premium
PITI Payment Breakdown
Payment Summary
Affordability Analysis
Debt-to-Income Analysis
Example Calculation
Sample PITI Calculation
Principal: $200,000
Term: 30 years @ 7%
Annual Tax: $3,600
Annual Insurance: $1,200
Formula: P&I + Tax/12 + Insurance/12
Result
Principal & Interest: $1,330.60
Monthly Tax: $300
Monthly Insurance: $100
Total PITI: $1,730.60
PITI Components
Principal
Loan amount (house price - down payment)
Interest
Cost of borrowing money from lender
Taxes
Annual property tax ÷ 12 months
Insurance
Annual homeowners insurance ÷ 12
Understanding PITI
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance - the four main components of your monthly mortgage payment. Understanding PITI helps you calculate the true cost of homeownership and determine how much house you can afford.
Why PITI Matters
- •Determines your monthly housing costs
- •Used by lenders to calculate DTI ratio
- •Helps with budgeting and affordability
- •Required for mortgage pre-approval
PITI Formula
PITI = Monthly Tax + Monthly Insurance + Monthly P&I
PITI = t/12 + i/12 + P × r/12 × (1+r/12)^n / [(1+r/12)^n - 1]
- t: Annual property tax
- i: Annual insurance cost
- P: Principal loan amount
- r: Annual interest rate
- n: Number of monthly payments
Factors Affecting PITI
- •Home Price: Higher price = higher principal
- •Down Payment: More down = lower principal
- •Interest Rate: Higher rate = higher payment
- •Location: Property taxes vary by area
- •Home Value: Higher value = higher insurance
The 28% DTI Rule
Most lenders use the 28% rule, which states that your PITI should not exceed 28% of your gross monthly income. This helps ensure you can afford your mortgage payments.
Example: If your monthly income is $6,000, your maximum PITI should be $1,680 ($6,000 × 0.28).