PITI Mortgage Payment Calculator

PITI stands for Principal, Interest, Taxes, and Insurance. It represents the four components that make up a complete monthly mortgage payment. Principal reduces your loan balance, interest is the cost of borrowing, property taxes are collected by your local government, and insurance protects the home and lender.

The principal and interest portion is calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (loan term in years × 12). This ensures the loan is fully paid off by the end of the term.

Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home's purchase price. PMI costs generally range from 0.5% to 1.5% of the original loan amount per year, paid monthly. Once you reach 20% equity in your home, you can usually request PMI cancellation.

The mortgage payment (P&I) only covers principal and interest on your loan. The full PITI payment adds property taxes and homeowner's insurance, plus optional costs like PMI and HOA fees. Your actual out-of-pocket monthly housing cost is the full PITI figure, which is what lenders also use to evaluate your debt-to-income ratio.

A larger down payment reduces your loan amount, which directly lowers your monthly principal and interest payment. It can also eliminate PMI if you put down 20% or more. Even a small increase in your down payment can save thousands of dollars in interest over the life of the loan.

An amortization schedule is a table showing every monthly payment broken down into its principal and interest components, along with the remaining loan balance. In the early years of a mortgage, most of each payment goes toward interest. Over time, the principal portion grows. The schedule helps you understand exactly how your loan is paid down over time.

A 15-year mortgage has higher monthly payments but a much lower total interest cost — you build equity faster and pay off the loan in half the time. A 30-year mortgage offers lower monthly payments and more cash flow flexibility, but you'll pay significantly more in interest over the life of the loan. The best choice depends on your budget and financial goals.

Yes — by adjusting the home price, down payment, and interest rate, you can see how different scenarios affect your monthly PITI payment. A common guideline is that your total housing costs should not exceed 28% of your gross monthly income. Compare the total monthly payment output to your income to gauge affordability.