Calculate your total monthly mortgage payment including Principal, Interest, Taxes, and Insurance. Determine how much house you can afford with our comprehensive PITI calculator.
Loan amount (purchase price minus down payment)
Loan term in years and months
Annual interest rate
Annual property tax amount
Annual homeowners insurance premium
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Total monthly payment
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Monthly mortgage payment
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Monthly property tax
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Monthly insurance premium
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Total yearly payment
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PITI stands for Principal, Interest, Taxes, and Insurance. It is the total amount of your monthly mortgage payment, including principal and interest on the loan, property taxes, and homeowners insurance. PITI is an important figure to consider when purchasing a home, as it can impact your budget and ability to qualify for a loan.
Calculate PITI by adding the Principal and Interest, Property Taxes, and Homeowners Insurance together. To find Principal and Interest, use the loan amount, interest rate, and term to calculate the monthly mortgage payment. Property Taxes and Homeowners Insurance are typically set by the local government or community association.
The principal component of PITI refers to the amount of money that goes towards reducing the principal balance of a mortgage loan. This is the actual amount of the loan that the borrower must repay, excluding interest charges./p>
Interest is the cost of borrowing money. It is typically expressed as an annual percentage rate (APR), and the interest on a mortgage is usually charged monthly.
Taxes are the property taxes that the homeowner is required to pay on their home. These taxes are usually based on the assessed value of the home, and they go towards funding local services such as schools, parks, and roads.
Insurance is the cost of protecting the home and its contents from damage or loss. This can include homeowners insurance, flood insurance, and other types of coverage.
Lenders use PITI to assess a borrower’s ability to afford a home loan and ensure they can make the monthly payments. PITI also helps borrowers to budget for homeownership and avoid overextending themselves financially.
Lenders usually only allow you to spend 28-31% of your gross monthly income on housing. This means that the PITI amount can not be greater than:
PITI is also helpful for accurately budgeting for housing, as it:
PITI Includes:
• Principal and interest payments
• Property taxes
• Homeowners insurance
• Private mortgage insurance (if applicable)
Additional Housing Costs:
• Utilities (electric, gas, water)
• Maintenance and repairs
• HOA fees
• Home improvements
Now that we have explained what PITI is, let’s see how to calculate PITI payments to get your own total monthly mortgage amount.
Principal & Interest:
P = L[c(1 + c)^n]/[(1 + c)^n - 1]
Where: L = Loan amount, c = Monthly interest rate, n = Total payments
Monthly Taxes:
Annual Property Tax ÷ 12
Monthly Insurance:
Annual Insurance Premium ÷ 12
Loan: $300,000 at 4.5% for 30 years
Principal & Interest: $1,520.06
Monthly Taxes: $3,600 ÷ 12 = $300
Monthly Insurance: $1,200 ÷ 12 = $100
Total PITI: $1,920.06
Calculating PITI can be complex and time-consuming. That is why we built a PITI calculator that does all the calculations for you, giving you a fast and accurate PITI total.
Accurate: Uses standard formulas for mortgage calculations
Fast: Gives you instant calculations with a click
Comprehensive: Takes all PITI components into account
Educational: Explains what each PITI component is
User-friendly: Simple to use with easy input fields
Mobile-friendly: Works on all devices
Free: No registration or subscriptions required
Shareable: You can save and share results with others
Lenders usually follow guidelines that restrict your housing costs to 28-31% of your gross monthly income, but some lenders may allow up to 43% for borrowers with excellent credit and low debt levels.
28% Rule:
28% Rule: Keep your PITI at or below 28% of your gross monthly income for the most financial flexibility.
Example:
$6,000 monthly income × 28% = $1,680 maximum PITI
31% Rule:
31% Rule: You can have a maximum PITI of 31% of your gross monthly income as the highest threshold for qualified borrowers.
Example:
$6,000 monthly income × 31% = $1,860 maximum PITI
43% Rule:
43% Rule: The maximum PITI of 43% of your gross monthly income is allowed for qualified borrowers with excellent credit scores and minimal debt.
Example:
$6,000 monthly income × 43% = $2,580 maximum PITI
PPITI stands for Principal, Interest, Taxes, and Insurance. These four components make up your total monthly mortgage payment.
PITI matters because it represents your true monthly housing cost. Lenders use PITI to determine how much house you can afford, and knowing your PITI will help you budget accurately and avoid overextending yourself financially.
To calculate PITI: 1) Calculate Principal & Interest using the mortgage payment formula; 2) Add monthly property taxes (annual taxes ÷ 12); 3) Add monthly homeowners insurance (annual premium ÷ 12); 4) Add PMI (if your down payment is less than 20%). The sum of all four components equals your total PITI payment.
Our PITI calculator uses the standard mortgage payment formula to calculate principal and interest, then adds your estimated monthly property taxes and homeowners insurance. Simply enter your loan amount, interest rate, loan term, annual property taxes, and annual insurance premium to get your total monthly PITI payment.
PITI includes: Principal, Interest, Property Taxes, and Homeowners Insurance. PITI does NOT include: utilities (electric, gas, water), maintenance costs, HOA fees, or other housing-related expenses. These additional costs should be considered when determining your total housing budget.
