PITI Mortgage Calculator
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up your true all-in monthly mortgage payment. The calculator above shows your principal and interest (P&I); add your estimated property taxes and homeowner's insurance below to build your full PITI. Here is why it matters: lenders use your PITI — not just P&I — when applying the 28% front-end debt-to-income (DTI) rule, so your PITI must stay under 28% of your gross monthly income to qualify for most conventional loans.
How it's calculated
PITI is calculated by adding four line items: principal and interest from your amortization schedule, monthly property taxes (annual tax ÷ 12), monthly homeowner's insurance (annual premium ÷ 12), and PMI if your down payment is less than 20%. The calculator above handles the P&I portion; the remaining components depend on your location and loan structure.
Property taxes vary widely by state and county. The national average is roughly 1.1% of assessed home value per year, according to the Tax Foundation, but ranges from under 0.3% in Hawaii to over 2.1% in New Jersey. Private mortgage insurance (PMI) typically runs 0.5–1.5% of the loan amount annually for borrowers with less than 20% down, according to the CFPB. PMI is split into 12 monthly installments. Once your equity reaches 20%, you can request PMI cancellation under the Homeowners Protection Act; at 22% equity it is automatically terminated.
A worked example
Say you buy a $400,000 home with 20% down ($80,000), leaving a $320,000 loan at 6.75% for 30 years. P&I works out to $2,075.68 per month. Property taxes at the national average of 1.1% on $400,000 add $366.67 per month. Homeowner's insurance at a typical $1,500 per year adds $125 per month. Because you put 20% down, there is no PMI. Total PITI: $2,567.35 per month. To qualify conventionally under the 28% front-end rule, you would need at least $9,169 per month in gross income ($2,567.35 ÷ 0.28).
Common mistakes to avoid
- Budgeting only for principal and interest. Taxes and insurance together often add $300–$600 or more per month on a median-priced home, which can push PITI above the lender's 28% front-end limit.
- Forgetting PMI when putting less than 20% down. On a $350,000 loan at 1% annual PMI, that adds $292 per month — a cost that disappears once you reach 20% equity.
- Using the list-price assessed value to estimate taxes. Assessed value can differ significantly from market price depending on your county. Ask the listing agent for the seller's current tax bill.
- Ignoring homeowner's insurance cost differences by location. Coastal or flood-prone areas can carry premiums three to four times the national average. Get a quote before finalizing your budget.
- Not asking about escrow. Most lenders escrow taxes and insurance, collecting them monthly as part of your payment. If yours does not, you must budget to pay those bills yourself at year-end.
Frequently asked questions
What does PITI stand for in a mortgage?
PITI stands for Principal, Interest, Taxes, and Insurance. These four items make up your total monthly housing cost. Lenders use your full PITI payment — not just principal and interest — when calculating your front-end debt-to-income ratio.
What is the 28% rule for PITI?
The 28% rule says your PITI should not exceed 28% of your gross monthly income. This is the conventional front-end DTI limit used by most lenders. For example, if you earn $8,000 per month before taxes, your PITI should stay at or below $2,240.
How much is PMI and when can I remove it?
PMI typically costs 0.5–1.5% of your loan amount per year, according to the CFPB. You can request cancellation once your equity reaches 20% of the original purchase price. Under the federal Homeowners Protection Act, your lender must automatically cancel PMI when your loan balance reaches 78% of the original value.
How do I estimate property taxes for my PITI?
Divide the annual property tax bill by 12. If you do not have the actual tax bill, use the county's current millage rate applied to the assessed value. The national average is about 1.1% of assessed value per year, per the Tax Foundation, but local rates vary significantly.
Is homeowner's insurance required for a mortgage?
Yes. Nearly all lenders require homeowner's insurance for the life of the loan. The premium varies by location, home value, coverage level, and risk factors like flood zone or fire risk. Your lender will typically collect it monthly through your escrow account.