Lenders use PITI to judge affordability, usually 28% or less of gross monthly income. Taxes and insurance are often paid through an escrow account, so your payment changes when they do.
How to use the PITI Calculator
- Principal (loan amount)
- Interest rate
- Loan term
- Annual property tax
- Annual homeowner insurance
- Monthly PMI
- Monthly HOA
- Gross monthly income
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the loan amount, interest rate, term, annual property tax, annual insurance, monthly PMI and HOA, and your gross monthly income.
Inputs explained
| Field | What to enter |
|---|---|
| Principal (loan amount) | Amount in your currency |
| Interest rate | In % |
| Loan term | Units: years, months |
| Annual property tax | Amount in your currency |
| Annual homeowner insurance | Amount in your currency |
| Monthly PMI | Amount in your currency |
| Monthly HOA | Amount in your currency |
| Gross monthly income | Amount in your currency |
What each result means
- Principal and interest = pmt([Interest rate]÷1200, [Loan term], [Principal (loan amount)])
- PITI = [Principal and interest] + [Annual property tax]÷12 + [Annual homeowner insurance]÷12
- Total with PMI and HOA = [PITI] + [Monthly PMI] + [Monthly HOA]
- Front-end ratio = [Total with PMI and HOA]÷[Gross monthly income]×100
Example values
How the main result changes when Principal changes and everything else stays at the example values above:
| Principal (loan amount) | PITI |
|---|---|
| 150,000 | 1,448.1 |
| 225,000 | 1,922.15 |
| 300,000 | 2,396.2 |
| 375,000 | 2,870.26 |
| 450,000 | 3,344.31 |
| 600,000 | 4,292.41 |
Formula
P&I = pmt(rate ÷ 12, months, loan)
PITI = P&I + annual property tax ÷ 12 + annual insurance ÷ 12
Total = PITI + PMI + HOA
Worked example
Inputs: Principal (loan amount): $300,000; Interest rate: 6.5 %; Loan term: 30 years; Annual property tax: $4,200; Annual homeowner insurance: $1,800; Monthly PMI: $0; Monthly HOA: $0; Gross monthly income: $9,000.
Results: Principal and interest = $1,896.20; PITI = $2,396.20; Total with PMI and HOA = $2,396.20; Front-end ratio = 26.62 %.
Frequently asked questions
What does PITI stand for?
Principal, interest, taxes and insurance.
Is PMI part of PITI?
Strictly no, but lenders include it when qualifying you.
How much of my income should PITI be?
28% or less of gross income is the common guideline.