PITI Calculator
Mortgage Payment Calculator
Estimate your complete monthly housing cost including principal, interest, taxes, and insurance.
Net Profit
$0.00
Per sale net cashflow
Profit Margin
0.0%
Gross margin ratio
Gross Revenue$2219.79
Total Expenses$280000.00
Principal & Interest$1769.79
Taxes & Insurance$450.00
Loan Principal$280000.00
Cost & Profit Breakdown
Visual AllocationPrincipal & Interest$1769.79
Property Tax$350.00
Home Insurance$100.00
Calculator Inputs
Instant Recalculation$350000.00
$20.00
$6.50
$4200.00
$1200.00
Net Profit
$0.00
Per sale net cashflow
Profit Margin
0.0%
Gross margin ratio
Gross Revenue$2219.79
Total Expenses$280000.00
Principal & Interest$1769.79
Taxes & Insurance$450.00
Loan Principal$280000.00
Cost & Profit Breakdown
Visual AllocationPrincipal & Interest$1769.79
Property Tax$350.00
Home Insurance$100.00
Calculator Inputs
Live Recalculation$350000.00
$20.00
$6.50
$4200.00
$1200.00
Breaking Down Your Monthly Mortgage Payment
Buying a home is one of the largest financial decisions you'll ever make. Understanding exactly what goes into your monthly payment is crucial for ensuring you can comfortably afford your new house.
The Four Components of Your Payment (PITI)
- Principal: The portion of your payment that pays down your actual loan balance.
- Interest: The cost of borrowing the money from your lender.
- Taxes: Property taxes assessed by your local government, usually divided by 12 and collected monthly.
- Insurance: Homeowners insurance to protect the property, also usually collected monthly.
The Core Mortgage Formula
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
This standard formula calculates your monthly Principal & Interest payment, where P is the principal, i is the monthly interest rate, and n is the number of months.
Frequently Asked Questions
PITI stands for Principal, Interest, Taxes, and Insurance. It represents your total monthly mortgage payment. Principal and interest go to the lender, while taxes and insurance are usually held in an escrow account to pay the government and insurance company on your behalf.
A larger down payment reduces the total amount you need to borrow (your principal). This lowers your monthly payment and decreases the total interest you'll pay over the life of the loan. A 20% down payment is standard to avoid Private Mortgage Insurance (PMI).
No. Your Principal and Interest (P&I) usually remain fixed if you have a fixed-rate mortgage. However, property taxes and home insurance premiums can change annually, which will alter your total monthly payment.