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.
Tips
- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.
Common mistakes to avoid
- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.
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 ÷ 12Total = PITI + PMI + HOAWorked 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.
What formula does the PITI Calculator use?
P&I = pmt(rate ÷ 12, months, loan).