PITI Calculator
Calculate your monthly mortgage payment including Principal, Interest, Taxes, and Insurance (PITI). This comprehensive calculator helps you understand your total housing costs and determine affordability.
Mortgage Details
PITI Breakdown
Principal & Interest:
$0.00
Property Taxes:
$0.00
Homeowners Insurance:
$0.00
Total PITI Payment:
$0.00
Affordability Analysis
28% Front-End Ratio:
0.00%
36% Back-End Ratio:
0.00%
Affordability Status:
N/A
Payment Insights
Interest Portion:
$0.00
Principal Portion:
$0.00
Total Interest Paid:
$0.00
Understanding PITI
PITI stands for Principal, Interest, Taxes, and Insurance. It's the total monthly housing payment that includes your mortgage payment plus property taxes and homeowners insurance. Lenders use PITI to determine how much house you can afford.
PITI Components
Principal & Interest
- Principal: Amount borrowed
- Interest: Cost of borrowing
- Calculated using amortization
- Fixed or adjustable rate
Taxes & Insurance
- Property taxes: Annual assessment
- Homeowners insurance: Hazard coverage
- Divided by 12 for monthly
- May include PMI/MIP
Debt-to-Income Ratios
Lending Standards
DTI ratios used by lenders
Front-End Ratio (28%)
- PITI / Gross Monthly Income
- Housing costs only
- Maximum 28% recommended
- Some lenders allow 33-36%
Back-End Ratio (36%)
- All debt payments / Gross Income
- Includes housing + other debts
- Maximum 36% recommended
- Some lenders allow 43%
PITI Calculation Methods
| Component | Formula | Notes |
|---|---|---|
| Principal & Interest | P&I = [P × r × (1+r)^n] / [(1+r)^n - 1] | Standard mortgage formula |
| Monthly Taxes | Taxes / 12 | Annual taxes divided by 12 |
| Monthly Insurance | Insurance / 12 | Annual insurance divided by 12 |
PITI vs Other Payments
vs Principal & Interest Only
- PITI includes all housing costs
- P&I is just the mortgage portion
- PITI is more comprehensive
- Used for affordability analysis
vs Rent Payments
- Rent doesn't build equity
- PITI includes principal reduction
- Rent may be cheaper short-term
- PITI can be tax deductible
Escrow Accounts
Escrow Benefits
- Automatic tax and insurance payment
- Protects against liens
- Spreads costs evenly
- Lender holds funds
Escrow Considerations
- Requires upfront payment
- Annual escrow analysis
- Interest on escrow funds
- Can be waived in some cases
PITI Limitations
Variable Costs
- Property taxes can change
- Insurance rates fluctuate
- HOA fees not included
- Maintenance costs excluded
Regional Differences
- Tax rates vary by location
- Insurance costs differ
- Lending standards vary
- Local regulations apply
Key Takeaways for PITI Calculator
- PITI = Principal + Interest + Taxes + Insurance represents your total monthly housing payment
- Lenders use PITI to calculate debt-to-income ratios for mortgage qualification
- Front-end DTI (PITI/income) should be =28%, back-end DTI (all debt/income) should be =36%
- Property taxes and homeowners insurance are typically escrowed and paid monthly
- PITI doesn't include HOA fees, maintenance costs, or other housing expenses
- Use PITI calculator to determine affordability before house hunting
- Compare PITI payments across different loan scenarios
- Consider tax deductions for mortgage interest and property taxes