PITI Formula: Calculate Your Full Monthly Mortgage Payment (Tax + Insurance)

The Complete PITI Formula

Your total monthly mortgage payment: PITI = M + (Annual Tax / 12) + (Annual Insurance / 12) + PMI. Where M = P [r(1+r)^n] / [(1+r)^n - 1]. Example: $300,000 loan at 6.5% for 30 years with $3,600 annual tax and $1,500 insurance. M = $1,896.20. Total PITI = $1,896.20 + $300 + $125 = $2,321.20. Use our mortgage calculator to compute instantly.

Component Breakdown

Principal: Loan amount, paid down monthly. Interest: Cost of borrowing = remaining balance x monthly rate. Taxes: Property tax = 0.5-2.5% of home value annually, collected monthly in escrow. Insurance: $100-$150/month typical. PMI: Required if down payment under 20%, costs 0.5-1% of loan annually.

Full Example: $300K Home

20% down ($60K). Loan: $240K at 6.5%. M = $1,516.96. Tax ($300K x 1.2%): $300/month. Insurance: $125/month. Total PITI: $1,941.96. No PMI (20% down). Use our amortization calculator for full schedule.

FAQ

Q: Why (1+r)^n in the formula?
A: Compound interest factor — (1+r)^n grows exponentially with loan term, explaining why longer loans cost much more.

Q: Escrow required?
A: Under 20% down: usually yes. Over 20%: often waivable. FHA/VA: always required.