PITI Calculator (Mortgage Payment)

The PITI calculator estimates a monthly mortgage payment after adding the four core parts many homeowners must budget for: principal, interest, property taxes, and homeowners insurance. It is more complete than a principal-and-interest loan payment, but still narrower than a full cost-to-own estimate. Enter the loan principal, term, interest rate, annual property tax, and annual insurance premium, and the result includes estimated monthly PITI plus the component amounts behind it.

PITI is useful because the house payment a borrower feels each month is rarely just the loan payment. Taxes and insurance can add hundreds of dollars. In some markets they can decide whether a home fits a lender’s debt-to-income limits. For loan-only math, use the home loan calculator. For a maximum purchase price from income and debts, use the home affordability calculator. For down payment and LTV planning, compare with the down payment calculator and LTV calculator.

What the calculator includes

The calculation has three parts. First, it amortizes the loan principal over the chosen term at the annual interest rate. Second, it divides annual property tax by 12. Third, it divides annual homeowners insurance by 12. The monthly tax and insurance amounts are added to principal and interest to produce the PITI estimate.

The result panel also shows total mortgage interest over the scheduled term and the number of payments. It does not include private mortgage insurance, homeowners association dues, special assessments, utilities, repairs, maintenance, rate changes, extra payments, lender fees, or closing costs. If PMI applies, estimate it separately with the PMI calculator. If you need a whole-budget view, pair the result with the budget calculator.

Formula

The fixed-rate monthly principal-and-interest payment is:

$\text{principal and interest} = \frac{\text{principal} \times \text{monthly rate} \times (1 + \text{monthly rate})^{\text{months}}}{(1 + \text{monthly rate})^{\text{months}} - 1}$

The tax and insurance pieces are:

$\text{monthly property tax} = \frac{\text{annual property tax}}{12}$

$\text{monthly insurance} = \frac{\text{annual insurance}}{12}$

The total monthly PITI estimate is:

$\text{PITI} = \text{principal and interest} + \text{monthly property tax} + \text{monthly insurance}$

The total scheduled interest is:

$\text{total interest} = \text{principal and interest} \times \text{months} - \text{principal}$

When the interest rate is zero, the calculator divides principal by the number of months for the loan portion. The number of months is the term in years times 12, rounded to the nearest whole month.

Worked example

Use the default inputs: $200,000 loan principal, 30 years, 7% annual interest, $3,600 in annual property tax, and $1,200 in annual homeowners insurance. The term creates 360 monthly payments. The monthly interest rate is 7% ÷ 12 = 0.5833333%, or 0.005833333 as a decimal.

The amortization formula produces a monthly principal-and-interest payment of about $1,330.60. Annual property tax of $3,600 divided by 12 is $300.00 per month. Annual insurance of $1,200 divided by 12 is $100.00 per month. Add those pieces:

$1,330.60 + $300.00 + $100.00 = $1,730.60 estimated monthly PITI.

The calculator also reports scheduled total mortgage interest of about $279,017.80, calculated from $1,330.6049903583646 × 360 - $200,000. That interest figure does not include taxes or insurance; it is only the cost of borrowing under the fixed-rate loan schedule.

How lenders use PITI

PITI is central to mortgage qualification because it approximates the recurring housing obligation. Lenders often compare the housing payment with gross monthly income for a front-end debt-to-income ratio, then compare housing plus other debts with gross income for a back-end ratio. A borrower with the same income and loan amount may qualify differently in two counties if property taxes or insurance premiums are very different.

Loan-to-value also affects the housing payment when PMI is required. A down payment below 20% on a conventional loan may add private mortgage insurance, which is not part of this calculator’s PITI output. That is why PITI is best treated as the base payment. Add PMI, HOA dues, and other recurring costs before deciding what you can comfortably carry.

Tips for better PITI estimates

Use property-specific tax and insurance assumptions whenever possible. Tax rates can change after purchase, especially if the property is reassessed or if exemptions differ between seller and buyer. Insurance can vary by roof age, location, coverage limits, deductible, claims history, wildfire risk, flood exposure, and replacement cost. A quick quote is usually better than a generic estimate.

Check whether the lender will escrow taxes and insurance. Escrow does not make the costs disappear; it spreads them into the monthly payment and the servicer pays bills when due. If you waive escrow, you still need to save monthly for annual or semiannual bills. When comparing homes, look at PITI rather than principal and interest alone so a lower-price home with high taxes does not surprise you.

Informational note

This calculator is for educational planning and does not replace lender disclosures, tax advice, insurance quotes, or escrow analysis. The CFPB Loan Estimate and Closing Disclosure are the documents that show projected payments and closing details for a specific mortgage. Confirm all figures before relying on them in an offer.

Formula sources and scope

• Regulation Z Appendix J — Annual Percentage Rate Computations — Electronic Code of Federal Regulations / CFPB; 2025 annual edition of 12 CFR Part 1026, Appendix J; accessed 2026-07-09; United States federal consumer credit. Supports: monthly principal-and-interest uses fixed-payment amortization; PITI=PI+annualTax/12+annualInsurance/12. Accessed 2026-07-09.
• Principles of Finance — OpenStax, Rice University (peer-reviewed open textbook); 2022 first edition, ISBN 978-1-951693-54-1; Jurisdiction-neutral finance definitions. Supports: monthly principal-and-interest uses fixed-payment amortization; PITI=PI+annualTax/12+annualInsurance/12. Accessed 2026-07-09.

These sources support the stated formula or definition. Results remain estimates based on the entered values and do not replace financial, legal, tax, lending, or investment advice. Compare periods, units, accounting definitions, and jurisdiction-specific rules before acting.

Sources

• CFPB, Loan Estimate explainer — verified 200; shows projected payments and escrow-related disclosures.
• CFPB, Closing Disclosure explainer — verified 200; explains final mortgage payment and cost disclosures.
• HUD, Buying a Home — verified 200; federal home-buying resources and consumer guidance.