Mortgage Calculator with Taxes and Insurance
Free PITI calculator for complete monthly housing costs including principal, interest, taxes, insurance, PMI, and HOA
PITI Calculator
Results
What is a PITI Mortgage Calculator?
A PITI mortgage calculator calculates your complete monthly housing payment including Principal, Interest, Taxes, and Insurance. Unlike basic calculators showing only P&I, this tool includes property taxes, homeowners insurance, PMI when applicable, and HOA fees for accurate total monthly housing cost estimation.
This calculator helps with:
- Complete cost budgeting - See total monthly housing expenses including all required payments
- Affordability assessment - Understand true monthly cost before making purchase decisions
- Lender qualification - Calculate the same PITI payment lenders use for debt-to-income ratios
- PMI impact analysis - See how down payment size affects PMI costs and total payment
- Escrow planning - Understand monthly escrow amounts for taxes and insurance
For basic mortgage calculations focusing only on principal and interest, use our home mortgage calculator for simplified payment estimates.
To determine maximum home price based on income and debt obligations, try our house affordability calculator for comprehensive budget analysis.
For calculating down payment requirements and LTV ratios that affect PMI, explore our down payment calculator for savings planning.
When evaluating whether you need PMI based on loan-to-value ratio, use our LTV calculator to determine equity percentages.
How PITI Calculations Work
PITI calculations combine loan payment with property-related costs to determine your complete monthly housing obligation.
The formula:
Monthly Tax = Annual Property Tax / 12
Monthly Insurance = Annual Insurance / 12
PMI = (Loan × Rate%) / 12 if LTV > 80%
Total PITI = P&I + Tax + Insurance + PMI + HOA
Components:
- Principal & Interest - Loan payment calculated with standard amortization formula
- Property Tax - Annual tax divided by 12, collected monthly in escrow
- Insurance - Annual homeowners premium divided by 12, collected in escrow
- PMI - Private mortgage insurance if down payment under 20%
- HOA - Monthly homeowners association fees (paid separately from escrow)
Lenders use this total PITI payment when calculating your debt-to-income ratio for loan qualification, making it the critical number for affordability assessments.
Key Concepts Explained
Lenders collect 1/12 of annual property taxes and insurance each month, holding funds in escrow until bills are due. This ensures taxes and insurance are paid on time, protecting both you and the lender from potential liens or coverage lapses.
PMI is required on conventional loans with less than 20% down. It typically costs 0.5-1.5% of loan amount annually. Once you reach 20% equity through payments or appreciation, you can request removal. PMI automatically cancels at 78% LTV.
Property taxes and insurance costs vary dramatically by location. High-tax states like New Jersey or Texas may add $500-1,000 monthly to housing costs, while low-tax states add significantly less. Always use local rates for accurate estimates.
Lenders use total PITI payment (not just P&I) when calculating DTI ratios for qualification. Most require housing costs under 28% of gross income and total debts under 36-43%, making PITI the critical number for loan approval.
How to Use This Calculator
- Enter home price and down payment - Input purchase price and how much cash you'll pay upfront
- Set interest rate and term - Enter your mortgage rate and loan duration in years
- Add annual property tax - Input yearly property tax amount from tax records or estimates
- Enter annual insurance - Add yearly homeowners insurance premium quote
- Include HOA fees if applicable - Add monthly homeowners association dues if the property has them
- Review total PITI payment - See complete monthly housing cost including all components
Benefits of Using This Calculator
- Accurate budgeting - See true monthly housing costs, not just principal and interest
- Avoid payment shock - Understand total costs before purchase to prevent budget surprises
- Lender qualification preview - Calculate the same PITI amount lenders use for approval decisions
- PMI cost awareness - See exactly how much PMI adds to monthly costs with various down payments
- Location comparison - Compare total housing costs across areas with different tax and insurance rates
- Complete cost transparency - No hidden costs; see every component of your monthly housing payment
Factors That Affect Your Results
- Down payment size - Larger down payments (20%+) eliminate PMI, significantly reducing monthly costs
- Property tax rates - High-tax locations can add hundreds monthly; verify local rates for accuracy
- Insurance costs - Rates vary by location, home value, coverage level, deductibles, and claim history
- Credit score impact on PMI - Lower scores face higher PMI rates; improving credit before buying saves money
- Escrow cushion requirements - Lenders may require 2-month cushion in escrow, slightly increasing initial payments
Frequently Asked Questions
What is PITI in a mortgage payment?
PITI stands for Principal, Interest, Taxes, and Insurance - the four components of a complete monthly housing payment. Principal and interest pay off your loan, while property taxes and homeowners insurance are typically escrowed and paid by your lender on your behalf.
Are property taxes and insurance included in my mortgage payment?
Usually yes, through an escrow account. Your lender collects 1/12 of annual taxes and insurance each month, holds these funds in escrow, then pays the bills when due. This ensures taxes and insurance are always paid on time and protects the lender's interest.
What is PMI and when do I have to pay it?
PMI (Private Mortgage Insurance) protects lenders if you default. It's required on conventional loans when you put down less than 20%. Typical PMI costs 0.5-1.5% of loan amount annually. Once you reach 20% equity through payments or appreciation, you can request PMI removal.
How much are typical property taxes and homeowners insurance?
Property taxes vary widely by location, typically 0.5-2.5% of home value annually. Homeowners insurance averages $1,000-$3,000 yearly depending on home value, location, and coverage. Check local rates for accurate estimates in your specific area.
What are HOA fees and are they part of my mortgage?
HOA (Homeowners Association) fees cover community amenities and maintenance in condos, townhomes, and planned communities. They're typically paid separately from your mortgage, not through escrow, though lenders include them when calculating housing affordability ratios.
How do I calculate total monthly housing costs?
Add principal and interest payment, property tax (annual/12), homeowners insurance (annual/12), PMI if applicable, and HOA fees if any. This total housing payment determines your true monthly cost and is what lenders use for debt-to-income ratio calculations.