PITI Calculator
See exactly where every dollar of your mortgage payment goes — principal, interest, taxes, and insurance — and check whether your housing cost fits lender guidelines.
Loan Details
Affordability Check
Pre-tax household income. Used for the 28% housing ratio.
Check your HOA disclosure; $0 if no HOA.
| Component | Monthly | Annual | % of PITI |
|---|---|---|---|
| Principal & Interest | — | — | — |
| Property Tax | — | — | — |
| Homeowner's Insurance | — | — | — |
| Total | — | — | 100% |
What Is PITI? #
PITI is the acronym lenders use for the four components of your full monthly housing cost: Principal, Interest, Taxes, and Insurance. When a lender says "your monthly payment is $2,548," they mean the total PITI — not just the loan payment. Understanding each piece helps you budget accurately and negotiate with confidence.
This calculator breaks down your PITI payment component by component, shows you each piece as a monthly amount, annual cost, and percentage of the whole, and checks whether your total housing cost fits within the 28% guideline lenders use to qualify borrowers.
The Four Components of PITI #
- Principal — The portion of each payment that reduces your outstanding loan balance. In the early years of a 30-year mortgage, principal makes up only about 15% of the P&I payment. By the final years, nearly all of each payment goes to principal. Only principal payments build equity in your home.
- Interest — The lender's fee for lending you money, calculated on the remaining balance each month. On a $320,000 loan at 6.5%, the first month's interest is approximately $1,733. As you pay down the balance, interest decreases and more of each payment shifts to principal.
- Taxes — Property taxes assessed by your local government, typically 0.5–2.5% of the home's assessed value per year. Most lenders collect one-twelfth of the annual bill each month into an escrow account and pay the county on your behalf. Property taxes can change annually based on assessments and mill rates.
- Insurance — Homeowner's insurance protects your property against damage and liability. Lenders require it as a condition of the loan. Annual premiums typically range from $1,200 to $2,500 nationally, though coastal, flood-prone, or wildfire-risk areas can be significantly higher. Like taxes, insurance is usually escrowed.
The 28% Housing Ratio Rule #
The front-end debt-to-income ratio — also called the housing ratio — measures what percentage of your gross monthly income goes to your total housing payment. Most conventional lenders use 28% as the guideline maximum. For example, with a gross monthly income of $8,000, lenders typically want your PITI to stay below $2,240.
Different loan programs apply different limits. FHA loans allow a housing ratio up to 31%. VA loans don't set a hard front-end limit, instead focusing on a 41% total debt ratio. Some conventional automated underwriting systems will approve ratios up to 36% with strong compensating factors such as significant cash reserves or an excellent credit score.
Enter your gross monthly income in the Affordability Check section above to see your housing ratio and how it compares to lender guidelines.
PMI: The Hidden Fifth Component #
If your down payment is less than 20%, lenders require Private Mortgage Insurance (PMI), which protects the lender — not you — in case of default. PMI typically adds 0.5–1.5% of the loan amount per year to your payment. On a $360,000 loan, that's $150–$450 per month.
PMI is technically not part of the PITI acronym, but lenders include it when calculating your housing ratio and qualification. The good news: PMI automatically cancels once your loan balance drops to 78% of the original purchase price, or you can request removal at 80% equity. Putting down 20% or more eliminates PMI from day one.
Why Your PITI Payment Can Change #
Even with a fixed-rate mortgage, your PITI payment isn't truly fixed. The P&I portion stays constant for the life of the loan, but the tax and insurance portions adjust annually. Your lender performs an escrow analysis once per year, comparing what they've collected against actual tax bills and insurance premiums. If there's a shortfall, your monthly payment increases; if there's a surplus, it decreases or you receive a refund.
Common triggers for escrow increases include property tax reassessments (especially after a purchase, when the county adjusts the assessed value to the sale price), insurance premium hikes in areas with increasing climate risk, and adding flood insurance if a new FEMA flood map places your property in a flood zone.
How to Reduce Your PITI Payment #
Each PITI component offers different opportunities to lower your total payment:
- Lower P&I — Make a larger down payment, choose a longer term (30 years vs 15), or shop for a lower interest rate. Even a 0.25% rate difference saves tens of thousands over the life of the loan.
- Lower taxes — Appeal your property tax assessment if you believe the assessed value is too high. Many counties accept appeals, and success rates vary from 20–40% depending on the jurisdiction.
- Lower insurance — Bundle home and auto policies, raise your deductible, improve the home's resistance to weather events, or shop competing carriers annually. Installing a security system, storm shutters, or a new roof can earn additional discounts.
- Eliminate PMI — Put down 20% upfront, or make extra payments to reach 20% equity faster. You can also request early cancellation with a new appraisal if your home has appreciated since purchase.
Frequently Asked Questions #
What does PITI stand for in a mortgage?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of your full monthly mortgage payment. Lenders evaluate your total PITI, not just the loan payment, when deciding how much you can borrow.
What is the 28% rule for PITI?
The 28% rule says your total PITI payment should not exceed 28% of your gross monthly income. On $8,000/month income, that's a $2,240 PITI limit. FHA allows up to 31%, and VA loans use a 41% total debt ratio instead.
How much of my PITI payment goes to principal?
In the early years of a 30-year mortgage, only about 15–20% of P&I goes to principal — the rest is interest. This gradually shifts until the final years, when nearly all of each payment is principal. Taxes and insurance don't build equity.
Are property taxes included in my mortgage payment?
Usually yes. Most lenders require an escrow account that collects one-twelfth of annual property taxes monthly. The lender pays the county when taxes are due. With 20%+ down, some lenders allow you to waive escrow and pay directly.
What happens to my PITI if property taxes or insurance increase?
Your total payment changes. Lenders perform an annual escrow analysis and adjust your monthly collection. If taxes or insurance premiums rise, your payment increases even though the P&I on a fixed-rate loan stays the same.