Audited 28 Jul 2026·Last updated 28 Oct 2026·6 citations·Tier 1·0 uses

PITI Calculator

Add principal and interest, a twelfth of property tax and insurance, plus optional PMI and HOA dues, to see the monthly mortgage payment lenders qualify on.

PITI Calculator

Purchase price minus your down payment — the amount the lender will actually finance. Use the mortgage calculator first if you need to work this out from a home price and down payment percentage.
$
The note rate quoted by your lender. Freddie Mac's 30-year fixed averaged 6.51% in May 2026.
%
Loan term
Your county/city's yearly property tax bill in dollars. Use the property tax calculator if you only know your home value and local millage rate.
$
Your yearly homeowners (hazard) insurance premium in dollars. Use the homeowners insurance calculator if you only have a quoted rate per $1,000 of coverage.
$
Private mortgage insurance is typically required when your down payment is under 20% (loan-to-value above 80%). Enter 0 if you put 20%+ down or your PMI has already been cancelled. Use the PMI calculator to estimate this from your down payment percentage and PMI rate.
$
Homeowners association or condo association dues. Not part of the strict PITI acronym, but a real recurring cost — included here in the all-in total so you see the true monthly outlay.
$
Monthly PITI (strict)
$2,682.24
Strict PITI in dollars a month: principal and interest plus the monthly shares of property tax and homeowners insurance, without PMI or dues.
Principal & interest
$2,212.24
Property tax (monthly)
$350.00
Homeowners insurance (monthly)
$120.00
PMI (monthly)
$0.00
HOA dues (monthly)
$0.00
Total monthly payment (PITI + PMI + HOA)
$2,682.24
Annual PITI (strict)
$32,186.86

Background.

PITI is lender shorthand for the four things a typical US mortgage payment covers: principal, interest, property taxes and homeowners insurance. Only the first two belong to the loan. The other two are bills the lender pays on your behalf: each month it collects a twelfth of the year's tax and insurance into an escrow account, then pays the county and the insurer when their bills fall due. Escrow accounts are regulated under the Real Estate Settlement Procedures Act, and most borrowers with a small down payment have one.

That is why the figure from a basic mortgage calculator falls short of the real draft. A $350,000 loan at 6.5 percent over 30 years costs $2,212.24 a month in principal and interest. Add a $4,200 property-tax bill and a $1,440 insurance premium and the payment becomes $2,682.24, about 21 percent more, before any mortgage insurance or association dues.

The full figure also decides how much you can borrow. Underwriters compare housing cost with gross income, and the long-standing rule of thumb holds PITI to about 28 percent of it, so an expensive tax district or a costly insurance market shrinks the loan you qualify for even at the same price and rate.

Two totals come out. Strict PITI is the four letters and nothing else. The total monthly payment adds private mortgage insurance and homeowners association dues, which are not in the acronym but leave the same bank account. The difference matters over time: on a conventional loan PMI ends once enough of the balance is paid down, while HOA dues continue for as long as you own the home.

The principal-and-interest part assumes a fixed rate, so it stays the same for the whole term. The tax and insurance parts are this year's bills, and they are reset every year.

What is piti calculator?

PITI is the monthly cost of a mortgage with the property's carrying costs folded in: the scheduled loan payment plus one-twelfth of the annual property tax and one-twelfth of the annual homeowners insurance premium. Within the loan payment the mix shifts over time. Early payments are mostly interest, because interest is charged on a large balance, and later ones mostly principal, while the combined amount stays fixed on a fixed-rate loan. Over a full 30 years at 6.5 percent, a $350,000 loan pays about $446,406 in interest, more than the amount borrowed. Tax and insurance follow their own schedules: the tax is set by local government against an assessed value, and the premium by the insurer when the policy renews. Lenders use PITI, sometimes with mortgage insurance and association dues added depending on the loan program, as the housing figure in the front-end debt-to-income ratio.

How to use this calculator.

  1. Enter the loan amount: the price less your down payment, not the price of the house. If you only know the price and the percentage down, the mortgage calculator works that out.
  2. Enter the interest rate from your quote or Loan Estimate, and choose a term of 15, 20, 25 or 30 years.
  3. Enter the yearly property-tax bill in dollars. For a purchase, ask the county assessor what the bill will be after the sale rather than copying the seller's figure, since many places reassess when a home changes hands.
  4. Enter the yearly homeowners insurance premium from a real quote. If your lender also requires flood insurance, add that premium to this figure, since it is escrowed and paid the same way.
  5. Enter monthly PMI if your down payment is under 20 percent on a conventional loan, and monthly HOA or condo dues if the property has them; otherwise leave both at 0.
  6. Read strict PITI for comparison with a lender's figures and the total monthly payment for your budget. The annual PITI line helps when checking against yearly income.

The formula.

PITI = PI + T⁄12 + I⁄12 ; Total = PITI + PMI + HOA
PI · monthly principal and interest from the amortization formulaT · yearly property tax, in dollarsI · yearly homeowners insurance premium, in dollarsPMI, HOA · monthly mortgage insurance and association dues, if any

The loan payment uses the standard amortization formula, PI = L × r(1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]. L is the loan amount, r the monthly rate (the annual percentage ÷ 100 ÷ 12), and n the number of monthly payments (years × 12, so 360 for a 30-year loan). This is the level payment that brings the balance exactly to zero with the final instalment. If the rate is 0, the formula would divide by zero, so the payment is simply L ÷ n.

Tax and insurance are spread evenly: T ÷ 12 and I ÷ 12, the same proration an escrow account uses. Strict PITI is PI + T ÷ 12 + I ÷ 12. The total monthly payment adds the monthly PMI and HOA amounts you enter, unchanged, and annual PITI is strict PITI × 12.

The rate drives the loan part much harder than people expect. On $350,000 over 30 years, moving from 6.5 to 7.5 percent lifts principal and interest from $2,212.24 to $2,447.25, $235.01 a month, while every extra $1,200 of yearly tax adds exactly $100. The term pulls the other way: the same loan over 15 years at the same rate needs $3,048.88 a month, but the tax and insurance portion does not change at all.

Two simplifications are built in. The tax and insurance figures are held flat at what you enter, while real bills are reset each year, so the strict PITI is accurate for the first year and drifts after that. And the loan part assumes a fixed rate for the whole term; an adjustable-rate loan's payment changes when its rate resets.

A worked example.

Example

A buyer is borrowing $350,000 at 6.5 percent over 30 years. The county bill is $4,200 a year, homeowners insurance is $1,440 a year, the lender requires $150 a month of PMI because the down payment is under 20 percent, and the townhouse community charges $50 a month in dues. The monthly rate is 6.5 ÷ 100 ÷ 12 = 0.0054167, and there are 360 payments. The amortization formula gives principal and interest of $2,212.24. In the first month, $1,895.83 of that is interest (350,000 × 6.5% ÷ 12) and only $316.40 reduces the balance. The tax works out to 4,200 ÷ 12 = $350 a month and the insurance to 1,440 ÷ 12 = $120. Strict PITI is 2,212.24 + 350 + 120 = $2,682.24. Adding PMI and dues, 2,682.24 + 150 + 50, gives a total monthly payment of $2,882.24, about 30 percent above the loan payment alone. Over a year, strict PITI comes to $32,186.86. Against a 28 percent front-end guideline, that PITI calls for gross income of about $114,953 a year, or $9,579 a month, before the PMI and dues are considered. The buyer's budget, though, needs to absorb the full $2,882.24 from the first payment.

hoa Monthly50
annual Homeowners Insurance1,440
annual Rate6.5
annual Property Tax4,200
loan Amount350,000
pmi Monthly150
term Years30

Frequently asked questions.

Does PITI include PMI and HOA dues?
Strictly, no: the acronym stops at principal, interest, taxes and insurance, and that is what the strict PITI result shows. Both still come out of your account every month, so the total monthly payment adds them. Lenders differ on which figure goes into their debt-to-income calculation, and many count PMI and association dues as housing costs, so ask which one your lender uses.
My rate is fixed. Why did my mortgage payment go up?
Because the escrowed part is not fixed. The servicer reviews the escrow account once a year and resets the monthly collection to match the latest tax bill and insurance premium. If last year's bills ran higher than collected, you also repay the shortage. A 10 percent rise in the $4,200 tax and a 20 percent rise in the $1,440 premium would add $59 a month to the example.
Why is my first payment different from this figure?
The servicer may hold a cushion in escrow, which RESPA rules limit to one-sixth of the year's estimated tax and insurance payments, and the timing of the first tax bill can require a larger initial deposit at closing. Those affect the escrow balance and sometimes the first year's collections. The PITI figure shows the steady monthly cost those collections are built around.
How much income do I need for a given PITI?
The traditional guideline caps housing at about 28 percent of gross monthly income and all debt payments at about 36 percent, though limits differ by loan program and lender. Dividing PITI by 0.28 gives the income the first test implies: $2,682.24 ÷ 0.28 is about $9,579 a month. Car loans, student loans and card minimums then have to fit inside the second limit.
When does PMI come off, and what happens to the payment?
Under the Homeowners Protection Act, PMI on a conventional loan must end automatically when the balance is scheduled to reach 78 percent of the home's original value, if you are current, and you can ask for it to be removed at 80 percent. If the example loan were 95 percent of a price of about $368,421, the original schedule hits 78 percent after 135 payments. Strict PITI is unaffected; the total falls by the PMI amount.
Will my property tax match the seller's bill?
Often not. Many jurisdictions reassess a home when it sells. In California, for example, Proposition 13 limits yearly increases in assessed value for an owner who keeps the home, but a sale resets the value to the purchase price, so a long-held home can carry a much smaller bill than the buyer will receive. Ask the assessor for an estimate based on your price.
How does a 15-year loan change PITI?
Only the loan part moves. At the same 6.5 percent, $350,000 over 15 years needs $3,048.88 a month in principal and interest against $2,212.24 over 30, so strict PITI rises to $3,518.88, while tax and insurance stay at $470. Shorter loans usually carry lower rates than 30-year ones, so enter the rate actually quoted for the term rather than reusing the 30-year rate.
Can I pay my taxes and insurance myself instead of through escrow?
Some lenders allow an escrow waiver, typically for borrowers with a large down payment, and some charge for it. You would then pay the county and insurer directly, so the payment to the lender drops to principal and interest. Your housing cost does not: you still need to set aside the same $470 a month in the example, and lenders still qualify you on full PITI.
What housing costs does PITI leave out?
Maintenance and repairs, utilities, and any coverage your lender does not escrow, such as earthquake insurance or flood insurance where it is not required. Special assessments from an association and closing costs are separate as well. PITI is the payment a lender sees; a realistic budget for owning the home sits above it. It also ignores taxes in the other direction: if you itemize deductions, mortgage interest and property tax may reduce your income tax, as IRS Publication 530 explains, but lenders qualify you on the full payment before any such saving.
I have an adjustable-rate mortgage. Does this still work?
For the first payment, yes: enter the initial rate. The formula then assumes that rate lasts the whole term, which an adjustable loan does not promise. To see the risk, rerun it at the highest rate your loan's caps allow; on the example, every percentage point above 6.5 adds roughly $235 a month at first, a little less later because the balance has fallen.

References& sources.

  1. [1]Consumer Financial Protection Bureau — Owning a Home (escrow accounts, loan estimates, and total monthly payment guidance)
  2. [2]Consumer Financial Protection Bureau — What is private mortgage insurance?
  3. [3]Internal Revenue Service — Publication 530: Tax Information for Homeowners
  4. [4]U.S. Department of Housing and Urban Development — Real Estate Settlement Procedures Act (RESPA), escrow account rules
  5. [5]Consumer Financial Protection Bureau — Loan Estimate and APR disclosure rules under TILA-RESPA
  6. [6]Federal Reserve Board — Homeowners Protection Act of 1998 (automatic PMI cancellation at 78% loan-to-value)

How this page was produced

Published by
Quanta Calculator
Overseen by
Daniel, Quanta Calculator Researcher
Primary sources
6 cited below
Method
PITI = PI + T⁄12 + I⁄12 ; Total = PITI + PMI + HOA
Published
Last verified

Built with AI assistance and verified by automated tests against the cited sources — every worked example on this page is computed by the same code that runs the calculator. How we build and check calculators.

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