Toolzie

PITI Calculator

Principal · Interest · Taxes · Insurance

How to Use the PITI Calculator

Enter your home price, down payment, interest rate, and loan term for the mortgage payment. Then add annual property tax, home insurance, monthly HOA, and PMI rate to see your total monthly housing cost.

PITI gives you the true cost of homeownership — not just the mortgage payment, but all recurring monthly housing expenses. Lenders use PITI to calculate your front-end debt ratio (should be under 28% of gross income).

Frequently Asked Questions

What does PITI stand for?

PITI stands for Principal, Interest, Taxes, and Insurance. It represents the total monthly housing cost: your mortgage principal and interest payment, plus property taxes and homeowners insurance divided by 12.

How is PITI calculated?

PITI = monthly principal & interest + (annual property tax / 12) + (annual home insurance / 12) + monthly HOA + monthly PMI. The principal & interest portion uses the standard mortgage amortization formula.

What is PMI and when do I need it?

PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home price. It typically costs 0.3% to 1.5% of the loan amount per year. You can cancel it once you reach 20% equity.

Does PITI include utilities?

No, PITI does not include utilities like electricity, water, gas, or internet. It only covers principal, interest, property taxes, and homeowners insurance. HOA fees are sometimes added as PITI+HOA.

What is a good PITI ratio?

Lenders typically want your PITI to be no more than 28% of your gross monthly income (the front-end ratio). The total debt-to-income ratio including all debts should stay under 36%.

How much are property taxes?

Property taxes vary by location. The US average is about 1.1% of home value per year, ranging from 0.3% in Hawaii to 2.2% in New Jersey. Check your local tax assessor for exact rates.

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Next steps after calculating your PITI

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About This Tool

The Toolzie PITI Calculator helps homebuyers calculate the true monthly cost of homeownership. PITI — Principal, Interest, Taxes, and Insurance — is what lenders use to determine your front-end debt ratio. Enter your home price, down payment, rate, and local tax/insurance costs to see your complete monthly housing payment.

How to Use

  1. Enter your home price and down payment amount.
  2. Input the mortgage interest rate and select your loan term.
  3. Add your annual property tax and home insurance costs.
  4. Optionally add monthly HOA fees and PMI rate, then click Calculate.

Frequently Asked Questions

What does PITI stand for?

PITI stands for Principal, Interest, Taxes, and Insurance. It represents the total monthly housing cost: your mortgage principal and interest payment, plus property taxes and homeowners insurance divided by 12.

How is PITI calculated?

PITI = monthly principal & interest + (annual property tax / 12) + (annual home insurance / 12) + monthly HOA + monthly PMI. The principal & interest portion uses the standard mortgage amortization formula.

What is PMI and when do I need it?

PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home price. It typically costs 0.3% to 1.5% of the loan amount per year. You can cancel it once you reach 20% equity.

What is a good PITI ratio?

Lenders typically want your PITI to be no more than 28% of your gross monthly income (the front-end ratio). The total debt-to-income ratio including all debts should stay under 36%.

Estimates only. Not tax, financial, or legal advice. Full disclaimer · Terms