📖 Overview
Use this upgraded calculator to estimate true monthly first-home cost including PITI components.
⚙️ How It Works
This combines principal and interest with estimated tax and insurance to model a fuller monthly housing cost.
The Formula
PITI = P&I Payment + (Annual Tax ÷ 12) + (Annual Insurance ÷ 12)
| P&I | Principal and interest from standard amortization formula |
| Tax / 12 | Monthly property tax estimate (annual ÷ 12) |
| Ins / 12 | Monthly homeowners insurance (annual ÷ 12) |
💡Most lenders want PITI below 28% of gross monthly income (the front-end DTI ratio). Always model PITI — not just the mortgage payment — when budgeting for a home purchase.
Quick Reference
| P&I / mo | Tax (1%/yr) | Insurance | PITI ($300k) |
|---|---|---|---|
| $1,610 (5%) | $250 | $100 | $1,960 |
| $1,799 (6%) | $250 | $100 | $2,149 |
| $1,996 (7%) | $250 | $100 | $2,346 |
| $2,197 (8%) | $250 | $100 | $2,547 |
Practical Tips
💡 Use current tax and insurance estimates from your area.
💡 Compare PITI, not only principal and interest, before committing.
Frequently Asked Questions
❓ Why is PITI higher than mortgage payment?
PITI includes property tax and insurance on top of principal and interest.
❓ Can escrow changes affect this?
Yes, tax and insurance adjustments can change real monthly outflow.