PITI = Principal Interest Taxes & Insurance.
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Mortgage PITI Calculator FAQ:
What is Mortgage PITI?
PITI stands for principal, interest, taxes, and insurance. These four components make up the total monthly mortgage payment for most homeowners. Our mortgage PITI calculator estimates the total monthly payment based on the loan amount, interest rate, loan term, property taxes, and homeowners insurance costs. Most homeowners with mortgages do not pay for their homeowners insurance and property taxes directly. Instead, the mortgage company estimates the annual cost for both property tax and homeowners insurance, and then divides the cost over 12 months, adding the extra cost to the homeowner’s monthly payment. The amounts collected for property tax and homeowners insurance are held in an ESCROW account, and the mortgage loan pays these expenses when they become due from the ESCROW account. The monthly amount collected for the ESCROW account may be adjusted from year to year due to increases in costs for property taxes and insurance. Funds held in an ESCROW account are separate and are not part of your loan. They do not affect the monthly principal and interest payments that are due for the loan.
Mortgage Payment Formula
Principal and interest are calculated using the standard amortization formula.
Monthly Payment = P × r(1+r)^n / ((1+r)^n − 1)
Example Mortgage Payment
Home price: $400,000Interest rate: 6.5%
Loan term: 30 years
Taxes: $2,400 per year
Insurance: $1,200 per year
Monthly P&I (Principal & Interest Only) Payment: $2,528.27
Monthly PITI (Principal, Interest, Tax, & Insurance) Payment: $2,828.27
What Is an Amortization Schedule?
An amortization schedule shows a full schedule of payments over the course of the loan and how each mortgage payment is divided between principal and interest over the life of the loan. Early payments consist mostly of interest, while later payments apply more toward the loan principal. It also provides the remaining payoff loan balance at the end of each month.Related Calculators
ABOUT THIS PAGE: Use this mortgage PITI calculator to estimate your monthly payment including principal, interest, property taxes, and homeowners insurance. View, copy/print, or download an amortization schedule.