Key takeaways
- PITI is principal, interest, property taxes, and homeowners insurance.
- Calculate principal and interest with the amortization formula, then add one-twelfth of annual taxes and insurance.
- Add PMI, HOA dues, maintenance, and other ownership costs separately when they apply.
The Consumer Financial Protection Bureau defines PITI as the four basic elements of a monthly mortgage payment: principal, interest, taxes, and insurance. Principal and interest repay the loan; tax and insurance amounts may be collected through escrow and paid when those bills come due.
The PITI formula
The monthly calculation is:
The principal-and-interest portion is normally calculated with the standard amortizing-loan formula. It depends on the amount borrowed, the monthly interest rate, and the number of monthly payments. Our PITI mortgage calculator performs that part automatically and displays the tax and insurance additions.
Inputs you need
- Loan amount: home price minus the cash down payment. This is the principal used in the mortgage formula.
- Interest rate: use the note rate on the loan, not the APR. APR includes certain loan costs and is useful for comparing offers, but it is not the rate used to calculate the scheduled payment.
- Loan term: commonly 15 or 30 years. Multiply the years by 12 to get the number of monthly payments.
- Annual property taxes: use a current tax bill or a local estimate for the specific property when possible.
- Annual homeowners insurance: use a quote rather than a national average when you are close to buying.
Worked PITI example
Consider a $400,000 home with a $80,000 down payment, a 30-year fixed mortgage at 6.5%, $4,800 in annual property taxes, and $1,600 in annual homeowners insurance. The resulting loan amount is $320,000.
| Payment component | Monthly amount |
|---|---|
| Principal and interest | $2,022.62 |
| Property taxes ($4,800 / 12) | $400.00 |
| Homeowners insurance ($1,600 / 12) | $133.33 |
| Estimated monthly PITI | $2,555.95 |
In this example, looking only at principal and interest would understate the monthly payment by $533.33. Open the same example in the calculator to change any assumption.
PITI is not always the total housing payment
Traditional PITI leaves out several costs that can still appear in your monthly budget. Mortgage insurance (PMI) may be included in the amount sent to your lender. HOA or condo dues are generally paid separately. Maintenance, utilities, flood insurance, and special assessments are also outside the basic formula.
The CFPB notes that the total payment sent to a mortgage company can include mortgage insurance and escrow, while HOA fees are often separate. Taxes and insurance can also change over time, even when principal and interest on a fixed-rate mortgage remain stable.
How to improve your PITI estimate
- Use the property's actual tax history and check whether a sale could trigger reassessment.
- Request an insurance quote for the address, coverage level, and deductible you expect to use.
- Add mortgage insurance when the loan estimate requires it.
- Include HOA dues in your housing budget even if the lender does not collect them.
- Compare the result with the Projected Payments section of the lender's Loan Estimate.
Common PITI questions
What is the formula for calculating PITI?
Monthly PITI equals monthly principal and interest plus annual property taxes divided by 12 plus annual homeowners insurance divided by 12.
Does PITI include PMI?
No. The traditional PITI acronym covers principal, interest, property taxes, and homeowners insurance only. PMI is a separate cost added on top when it applies. See does PITI include PMI for when PMI applies and a worked example with PMI added.
Does PITI include HOA dues?
No. HOA dues are normally separate from traditional PITI, but they belong in a complete monthly housing budget.
Why can my PITI payment change?
On a fixed-rate loan, principal and interest are generally stable, but property taxes and insurance premiums can change. An escrow review can therefore raise or lower the amount collected each month.
Sources
Run your own numbers
Change the price, rate, taxes, insurance, HOA dues, and extra payments in the interactive calculator.
Continue learning
PITI With Extra Payments
See what an extra principal payment changes, what stays the same, and how much interest it can save.
Read guide$400k Home PITI Scenario
Review a complete payment breakdown for a $400,000 home with 5% down at a 7% rate.
Read guidePITI vs. Principal and Interest
See why a quoted rate payment is usually lower than your full PITI, and how to compare the two.
Read guideThis guide provides educational estimates, not lending, tax, or financial advice. Confirm loan terms and payment instructions with your lender or mortgage servicer.