How this calculator works
PITI stands for principal, interest, taxes and insurance, the four parts of a monthly housing payment that most lenders count when they test affordability. Principal and interest come from the mortgage amount, rate and amortization. Property tax and home insurance are annual figures divided by twelve, which matches the escrow arrangement used on many loans. Condo or HOA fees are not part of PITI in the strict sense, but many lenders add them when calculating ratios, so the field is included and reported separately. Utilities, maintenance and mortgage default insurance are excluded.
Formula
Principal and interest A = P × i / (1 - (1 + i)^(-n)), where i = annual rate / 12 and n = amortization in years × 12. Monthly tax = annual property tax / 12. Monthly insurance = annual home insurance / 12. PITI = A + tax + insurance (+ condo or HOA fees). Annual total = PITI × 12.
Worked example
A $400,000 mortgage at 5.5% over 25 years has a principal and interest payment of $2,456.35. With $4,800 of annual tax and $1,800 of annual insurance, the monthly figures are $400.00 and $150.00, so PITI is $3,006.35 and $36,076.20 a year. With no condo fees the total is the full PITI figure.
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Frequently asked questions
Does PITI include everything I will pay?
No. It excludes utilities, maintenance, condo fees in the strict definition and any mortgage default insurance premium. It is the payment lenders assess, not your full cost of living in the home.
Why escrow tax and insurance rather than pay them directly?
Lenders often collect one twelfth of the annual amounts each month and pay the bills when due. The monthly figures here match that arrangement, whether or not your loan uses escrow.
Does the PITI payment change over time?
The principal and interest part is fixed on a fixed-rate mortgage, but tax and insurance are reassessed and renegotiated, so the escrowed portion commonly changes every year.
Should I use gross or net income for the ratio test?
Lenders use gross income. The share figure shown compares PITI with the housing payment that would be 28% of gross income implied by the loan; use the debt-to-income calculator for a full ratio against your own income.