PITI Calculator

What PITI Means

PITI stands for principal, interest, taxes and insurance. It is the full monthly cost of carrying a mortgaged property, not only the loan payment. Lenders use it to judge whether a borrower, or a rental, can support the debt.

The formula is simple: PITI = monthly principal and interest + annual property tax / 12 + annual insurance / 12. Add mortgage insurance and HOA dues when they apply. Lenders often call that fuller figure PITIA.

Worked Example

A $300,000 rental bought with 25% down leaves a $225,000 loan. At 7% over 30 years, principal and interest come to $1,497 a month. Property tax of $3,600 a year adds $300 and insurance of $1,500 a year adds $125, for a total of $1,922.

With rent of $2,500, the rent is 1.30x the payment and leaves $578 a month before vacancy, repairs and management.

Why PITI Matters More on a Rental

A quoted mortgage payment usually covers principal and interest only. Taxes and insurance can add 20% or more, and they tend to rise over time while a fixed-rate loan payment does not. Underwriting a rental on principal and interest alone overstates cash flow.

Many DSCR lenders divide the rent by the full PITIA payment to decide whether a loan qualifies, and commonly look for 1.25 or higher. This calculator shows that ratio so you can test a deal before you apply.

Down Payment and Mortgage Insurance

Mortgage insurance generally applies to conventional loans above 80% loan-to-value. Fannie Mae's eligibility matrix dated December 10, 2025 allows up to 85% LTV on a 1-unit investment property purchase and 75% on 2 to 4 units, so most rental purchases need 15% to 25% down. Enter the rate your lender quotes.

Related Calculators

• Loan Payment & Amortization Calculator: See the principal and interest schedule behind the payment.
• DSCR Loan Calculator: Check the property against a lender's coverage minimum.
• Rental Property Refinance Calculator: See whether a new loan would lower the payment enough to pay off.
• Cash Flow Calculator: Add vacancy, repairs and management to the full picture.

Frequently Asked Questions

What does PITI stand for?

Principal, interest, taxes and insurance. It is the full monthly housing payment: the loan payment plus one twelfth of the annual property tax and insurance bills.

How do I calculate PITI?

Add the monthly principal and interest payment, the annual property tax divided by 12 and the annual insurance premium divided by 12. Add mortgage insurance and HOA dues if they apply.

Is PITI different for a rental property?

The formula is the same, but the inputs differ. Rentals usually carry higher interest rates, larger down payments and landlord insurance, and lenders may compare the rent with the full payment.

Does PITI include HOA dues?

Strictly, no. Lenders add HOA dues and mortgage insurance on top and often call the result PITIA. This calculator includes both in the total so you see the whole payment.