PITI Calculator
PITI is the payment lenders actually quote: principal, interest, property taxes and insurance in one monthly figure, including the escrow part your lender collects.
The four letters inside every mortgage quote
PITI — principal, interest, taxes, insurance — is the complete housing payment a lender uses when it qualifies you. House-hunting with a P&I-only figure is how buyers end up house-poor: the tax and insurance slices are not optional extras, they are collected monthly into escrow whether you plan for them or not.
PITI = principal & interest + (home value × tax rate ÷ 12) + (insurance ÷ 12)
Example: a $300,000 loan at 6% over 30 years on a $375,000 home: P&I $1,798.65, taxes at 1.1% of value $343.75 a month, insurance $150 a month. PITI total: $2,292.40.
What escrow means for your cash flow
The T and I slices do not pay a tax bill monthly — they accumulate in an escrow account your servicer manages, and the servicer pays the county and the insurer when due. Lenders also hold a small cushion (up to two months), so the collected figure can run slightly above the simple twelfths this page computes.
How this is calculated
Principal and interest: standard amortization, nominal rate ÷ 12, payments at month end. Taxes: home price × your tax rate, divided by 12 — enter your county's effective rate, not the headline millage, if you know it. Insurance: annual premium ÷ 12. HOA dues, when entered, are added as a flat monthly amount. Escrow cushions and prepaid items at closing are outside this monthly figure.
Frequently asked questions
Does PITI include HOA dues or PMI?
Strictly, no — PITI is the four named parts. But lenders count HOA dues and PMI in your real monthly obligation, which is why this page lets you add HOA and why affordability checks use more than PITI.
Why is my escrow payment higher than taxes ÷ 12?
Servicers may hold a cushion of up to two months of escrow and re-estimate yearly; after a tax increase they also collect a shortage, spread over the following year.
Is property tax based on the price or the assessed value?
The assessed value, which often differs from the purchase price and resets in many places when a home sells. This calculator multiplies the rate by the price you enter — use your assessed value if you know it.
What tax rate should I enter?
Your effective total rate (state, county, city and school layers combined) as a percentage of value. Around 1.1% is a rough national middle; some states run near 0.3% and others above 2%.
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