PITI Payment Calculator
PITI is the four part anatomy of a typical monthly mortgage payment: principal, interest, taxes and insurance. The first two repay the loan itself, while taxes and insurance are usually collected month by month into an escrow account and paid out when they fall due. Lenders care about the whole figure, because taxes and insurance are real recurring costs that shape how much you can truly afford. This calculator brings the four parts together. It computes the monthly principal and interest using the standard amortization formula, where the monthly rate is the annual rate divided by twelve and the term is the number of months. It then adds one twelfth of the annual property tax and one twelfth of the annual insurance premium to give your full monthly PITI. Enter the loan amount, the rate, the term in years, and the annual tax and insurance figures, and you get each component and the combined payment. It is a budgeting tool, and it leaves out homeowners association dues and private mortgage insurance, which you add separately if they apply. Every figure here is computed deterministically from the formula shown below, with a worked example that reconciles exactly to the calculator so you can follow each step.
PITI adds the monthly principal and interest to the monthly tax and insurance: PITI = P&I + tax/12 + insurance/12. A $300,000 loan at 6.50% over 30 years has a principal and interest payment of $1,896.20. With $300.00 monthly tax and $100.00 monthly insurance, the total PITI is $2,296.20 a month.
PITI payment formula
Monthly PITI = P&I + Monthly tax + Monthly insurance
P&I = L x i x (1 + i)^n / ((1 + i)^n - 1)
i = annual rate / 12, n = term in years x 12
Monthly tax = Annual tax / 12, Monthly insurance = Annual insurance / 12
The principal and interest portion uses the standard amortization formula. The monthly rate i is the annual rate divided by twelve, and n is the number of monthly payments. Taxes and insurance are simply spread evenly across the twelve months.
Worked example
A borrower takes a 300,000 dollar loan at 6.5 percent over 30 years, with 3,600 dollars of annual property tax and 1,200 dollars of annual insurance.
- i = 0.065 / 12 and n = 30 x 12 = 360
- P&I = 300,000 x i x (1 + i)^360 / ((1 + i)^360 - 1) = 1,896.20
- Monthly tax = 3,600 / 12 = 300 and monthly insurance = 1,200 / 12 = 100
- Total PITI = 1,896.20 + 300 + 100 = 2,296.20
The total monthly PITI is 2,296.20 dollars. These are the calculator's default inputs, so the result above matches the widget exactly.
The four parts of PITI
| Component | Monthly amount | What it is |
|---|---|---|
| Principal and interest | $1,896.20 | Repays the loan over the term |
| Taxes | $300.00 | Property tax, often escrowed |
| Insurance | $100.00 | Homeowners insurance premium |
| Total PITI | $2,296.20 | Full monthly housing payment |
Figures use the calculator defaults. Homeowners association dues and private mortgage insurance are not included in core PITI.
PITI payment calculator: frequently asked questions
What does PITI stand for?
PITI stands for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Principal and interest repay the loan, while taxes and insurance are often collected monthly into an escrow account and paid out when due.
How is the PITI payment calculated?
Add the monthly principal and interest to one twelfth of the annual property tax and one twelfth of the annual insurance premium. The principal and interest portion uses the standard amortization formula based on the loan amount, the monthly interest rate, and the number of months in the term.
Why do lenders use PITI?
Lenders look at the full PITI payment, not just principal and interest, when judging affordability. Taxes and insurance are real, recurring housing costs, so including them gives a truer picture of the monthly burden and helps size debt to income ratios.
Does PITI include HOA dues or PMI?
Not in the core PITI figure. Homeowners association dues and private mortgage insurance are separate line items that lenders may add on top when assessing affordability. This calculator covers the four PITI components; add any HOA or PMI cost separately.
Can my PITI payment change over time?
Yes. Principal and interest stay level on a fixed rate loan, but the tax and insurance portions can rise or fall as assessments and premiums change. Many lenders review escrow yearly and adjust the monthly amount, so your total PITI can shift even on a fixed rate mortgage.
Official sources
- Buying a house, renting and mortgage basics: US Consumer Financial Protection Bureau (CFPB). As at 25 June 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. This is general information, not financial, tax, legal or investment advice.