PITI Calculator
Calculate your complete monthly mortgage payment broken down into Principal, Interest, Taxes and Insurance. Includes PITI-to-income ratio for lender qualification, escrow analysis, and how your true housing cost grows over time even with a fixed-rate mortgage.
Your P&I payment stays fixed on a fixed-rate mortgage. But T and I grow each year with inflation and reassessments — your true housing cost rises even with a locked rate.
| Component | Monthly | Annual | % of PITI | Changes? |
|---|---|---|---|---|
| Principal (P) | $276 | — | — | Grows each month as loan is paid down |
| Interest (I of PI) | $1,800 | — | — | Shrinks each month as balance falls |
| P&I Combined | $2,076 | $24,906 | 79.1% | Fixed for the life of the loan |
| Property Tax (T) | $400 | $4,800 | 15.2% | Rises with reassessments (typically every 1-3 years) |
| Insurance (I) | $150 | $1,800 | 5.7% | Rises at renewal — shop annually |
On a fixed-rate mortgage, P&I stays flat forever. But T and I grow each year — meaning your true housing cost rises even though your "mortgage payment" is locked.
| Year | P&I | Tax | Insurance | Total PITI | vs Year 1 |
|---|---|---|---|---|---|
| Year 1 | $2,076 | $400 | $150 | $2,626 | — |
| Year 5 | $2,076 | $450 | $175 | $2,701 | +$76 |
| Year 10 | $2,076 | $522 | $213 | $2,811 | +$185 |
| Year 15 | $2,076 | $605 | $260 | $2,940 | +$315 |
| Year 20 | $2,076 | $701 | $316 | $3,093 | +$467 |
| Year 25 | $2,076 | $813 | $384 | $3,273 | +$648 |
| Year 30 | $2,076 | $943 | $468 | $3,486 | +$860 |
How to Use This PITI Calculator
Enter your loan amount, interest rate, loan term, annual property tax, and annual homeowners insurance. If your down payment is under 20%, add your monthly PMI. If you have an HOA, add those fees too. The calculator shows your complete monthly housing cost and your PITI-to-income ratio for lender qualification.
Understanding Each PITI Component
- Principal (P): the portion of your payment that reduces your loan balance
- Interest (I): the cost of borrowing — higher in early years, decreases over time
- Taxes (T): annual property tax divided by 12, collected in escrow by your lender
- Insurance (I): annual homeowners insurance divided by 12, also held in escrow
On a fixed-rate mortgage, P+I stays constant for the life of the loan. Your T and I components will increase over time as property taxes are reassessed and insurance premiums rise with inflation.
The Formula
Where:
L = Loan amount
r = Monthly rate (annual rate ÷ 12)
n = Total payments (years × 12)
Monthly PITI = P&I + (Annual Tax ÷ 12) + (Annual Insurance ÷ 12) + PMI
PITI Ratio (Front-End DTI) = Monthly PITI ÷ Gross Monthly Income
Lender limit: 28% conventional / 31% FHA
Your lender uses total PITI (including PMI and HOA) as your "housing expense" when calculating your front-end debt-to-income ratio. A PITI ratio under 28% of gross monthly income is the conventional guideline; FHA loans allow up to 31% with compensating factors.
Example
The Martinez Family Buying in Dallas, TX
The Martinez family is buying a $380,000 home in Dallas with a $76,000 down payment (20%) on a 30-year mortgage at 7.00%. Texas has no state income tax but has high property taxes.
| Purchase Price | $380,000 |
| Down Payment (20%) | $76,000 |
| Loan Amount | $304,000 |
| Interest Rate | 7.00% |
| Monthly P&I | $2,023 |
| Property Tax (TX ~2.1%/yr) | $665/mo |
| Homeowners Insurance | $150/mo |
| PMI (20% down — none) | $0 |
| Total Monthly PITI | $2,838 |
| Gross Income Needed (28% ratio) | $10,136/mo ($121,632/yr) |