What is PITI in a mortgage?
PITI stands for principal, interest, taxes, and insurance. It represents the full monthly housing payment many borrowers budget for.
Finance calculator
Mortgage Calculator
Calculate monthly mortgage payments instantly with home price, down payment, interest rate, property tax, and insurance. Review both principal-and-interest payments and a fuller monthly PITI estimate.
Calculate monthly home loan payments with down payment, property tax, and insurance.
Home price
$400,000
Down payment
$80,000 (20%)
Loan amount
$320,000
Home price minus down payment
Annual interest rate
6.5%
Loan term
360 months
About 30 years
Annual property tax
$4,800
Annual insurance
$1,200
Amortization schedule
Review how each monthly payment shifts from interest-heavy to principal-heavy over time.
How mortgage payments work
A mortgage is a long-term loan used to buy real estate. Each monthly payment is split between principal, which reduces the balance, and interest, which is the cost of borrowing. Early in the loan, more of the payment usually goes toward interest. Over time, the principal portion grows.
Many borrowers also budget for taxes and insurance on top of the loan payment. That full estimate is often called PITI: principal, interest, taxes, and insurance.
Mortgage payment formula
The core monthly payment formula is:
M = P * r * (1 + r)^n / ((1 + r)^n - 1)- P: loan amount after down payment
- r: monthly interest rate
- n: loan term in months
How to use this mortgage calculator
- Select the currency closest to your market.
- Adjust the home price and down payment.
- Set the annual mortgage rate and loan term.
- Add annual property tax and insurance to estimate PITI.
- Review monthly payment, total interest, and amortization schedule.
How to lower your monthly mortgage payment
- Increase the down payment to reduce the financed amount.
- Choose a longer loan term to spread payments across more months.
- Compare lenders to find a lower rate.
- Consider extra principal payments later to reduce total interest.
Frequently asked questions
How is a mortgage payment calculated?
Mortgage payments are calculated using the loan amount, monthly interest rate, and term in months. Property tax and homeowners insurance are then added to estimate PITI.
How much down payment do I need for a mortgage?
That depends on the country, lender, and loan program. Many buyers target 10 to 20 percent, but some markets and products require more or less.
How can I lower my monthly mortgage payment?
A larger down payment, lower interest rate, longer term, or later refinancing can reduce the monthly payment. Extra principal payments can also cut long-term interest.
What is an amortization schedule?
It is a month-by-month breakdown of each payment, showing how much goes to interest, how much goes to principal, and the remaining balance.
Does this mortgage calculator work for different countries?
Yes. It includes market-specific defaults for USD, EUR, GBP, AED, and INR so you can start with more realistic examples for your region.