PITI Mortgage Payment Calculator
Estimate your monthly mortgage payment including Principal, Interest, Property Taxes, and Homeowner's Insurance (PITI).
Enter Loan and Property Cost Details
Understanding PITI
PITI is an acronym that stands for the four main components of a typical monthly mortgage payment:
- Principal (P): The portion of your payment that goes towards reducing the outstanding balance of your loan.
- Interest (I): The cost charged by the lender for borrowing the money.
- Taxes (T): Property taxes assessed by your local government. Lenders often collect 1/12th of the estimated annual tax bill each month and hold it in an escrow account to pay the bill for you.
- Insurance (I): Homeowner's insurance premium required by lenders to protect the property against damage (and sometimes Private Mortgage Insurance - PMI - if your down payment was low). This is also often collected monthly via escrow.
Calculating your estimated PITI gives you a more realistic picture of your total monthly housing cost compared to just looking at the principal and interest payment.
Formula for P&I:
The monthly principal and interest payment (M) is calculated using the standard loan payment formula:
$M = P \frac{r(1+r)^n}{(1+r)^n - 1}$
Where P is the Loan Amount, r is the *monthly* interest rate (Annual Rate / 12), and n is the total number of payments (Loan Term in Years × 12).
Taxes and Insurance:
The monthly amounts for taxes and insurance are estimated by dividing the annual costs you provide by 12.
Frequently Asked Questions (FAQs)
1. What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance – the four main components typically included in a monthly mortgage payment.
2. Why is PITI important?
It represents your total core monthly housing cost associated with your mortgage and homeownership, helping you budget accurately and understand affordability. Lenders use it to calculate your Debt-to-Income ratio.
3. Is PITI the same for the entire loan term?
The Principal & Interest (P&I) portion is usually fixed for fixed-rate mortgages. However, the Taxes (T) and Insurance (I) portions can change annually based on property assessments and insurance premium adjustments, causing your total PITI payment to fluctuate slightly over time, even with a fixed-rate loan.
4. What is an Escrow Account?
An escrow account is often managed by your lender to collect the Tax and Insurance portions of your PITI payment each month. The lender then uses the funds in escrow to pay your property tax bills and homeowner's insurance premiums when they become due.
5. Does PITI include HOA fees?
No, typically not. If your property is part of a Homeowners Association (HOA), those fees are usually paid separately and are an additional housing expense on top of PITI.
6. Does PITI include Private Mortgage Insurance (PMI)?
Sometimes the "I" in PITI *can* include PMI if required, but often PMI is considered a separate component. This calculator considers "I" as only homeowner's insurance. PMI is usually required if your down payment is less than 20% and would be an additional monthly cost.
7. How are the Tax and Insurance amounts estimated?
This calculator uses the annual amounts you provide and divides by 12. Real-world amounts can be obtained from your local tax assessor's office (for property taxes) and insurance company quotes.
8. Can I pay taxes and insurance separately?
Sometimes, especially if you have significant equity (e.g., more than 20%). However, many lenders require escrow accounts, particularly for loans with lower down payments, to ensure these critical bills are paid.
9. How does PITI affect loan qualification?
Lenders use your estimated PITI as your primary housing expense when calculating your Debt-to-Income (DTI) ratios (both front-end and back-end), which are key factors in determining loan approval and how much you can borrow.
10. How do I calculate just Principal & Interest (P&I)?
You can use this calculator and simply enter $0 for Annual Property Taxes and $0 for Annual Homeowner's Insurance. The "Principal & Interest (P&I)" line item in the results will show the P&I payment.
Examples (USD)
- Scenario 1: Loan $300,000, Rate 6%, Term 30yrs, Tax $4,800/yr, Ins $1,200/yr.
- P&I: $1,798.65
- Taxes: $400.00
- Insurance: $100.00
- Total PITI: $2,298.65
- Scenario 2 (15-Year Term): Loan $300,000, Rate 5.5%, Term 15yrs, Tax $4,800/yr, Ins $1,200/yr.
- P&I: $2,452.80
- Taxes: $400.00
- Insurance: $100.00
- Total PITI: $2,952.80 (Higher P&I due to shorter term)
- Scenario 3 (Lower Rate): Loan $300,000, Rate 4.5%, Term 30yrs, Tax $4,800/yr, Ins $1,200/yr.
- P&I: $1,520.06
- Taxes: $400.00
- Insurance: $100.00
- Total PITI: $2,020.06
- Scenario 4 (Higher Tax/Ins): Loan $300,000, Rate 6%, Term 30yrs, Tax $7,200/yr, Ins $1,800/yr.
- P&I: $1,798.65
- Taxes: $600.00
- Insurance: $150.00
- Total PITI: $2,548.65
- Scenario 5 (Smaller Loan): Loan $150,000, Rate 6%, Term 30yrs, Tax $2,400/yr, Ins $900/yr.
- P&I: $899.33
- Taxes: $200.00
- Insurance: $75.00
- Total PITI: $1,174.33
- Scenario 6 (No Tax/Ins Entered): Loan $200,000, Rate 7%, Term 30yrs, Tax $0/yr, Ins $0/yr.
- P&I: $1,330.60
- Taxes: $0.00
- Insurance: $0.00
- Total PITI: $1,330.60
- Scenario 7: Loan $450,000, Rate 5.8%, Term 30yrs, Tax $6,000/yr, Ins $1,500/yr.
- P&I: $2,643.56
- Taxes: $500.00
- Insurance: $125.00
- Total PITI: $3,268.56
- Scenario 8 (20-Year Term): Loan $250,000, Rate 6.2%, Term 20yrs, Tax $3,600/yr, Ins $1,000/yr.
- P&I: $1,816.96
- Taxes: $300.00
- Insurance: $83.33
- Total PITI: $2,199.29
- Scenario 9 (Large Loan): Loan $700,000, Rate 6.5%, Term 30yrs, Tax $12,000/yr, Ins $2,400/yr.
- P&I: $4,424.92
- Taxes: $1,000.00
- Insurance: $200.00
- Total PITI: $5,624.92
- Scenario 10 (0% Interest - Theoretical):** Loan $100,000, Rate 0%, Term 10yrs, Tax $1,200/yr, Ins $600/yr.
- P&I: $833.33
- Taxes: $100.00
- Insurance: $50.00
- Total PITI: $983.33
