Your real monthly housing cost is more than the loan payment. PITI adds Principal & Interest (from PMT) to monthly Taxes and Insurance — the number lenders actually use.
The example
$300k loan at 6%/30yr plus $4,800 tax and $1,200 insurance.
| A | B | |
|---|---|---|
| 1 | Component | Monthly |
| 2 | P&I | $1,799 |
| 3 | Taxes + Ins | $500 |
| 4 | PITI | $2,299 |
The formula
The formula:
How it works
How it works:
PMT(rate/12, years*12, -loan)gives the monthly principal & interest.- Add monthly taxes and insurance: the annual amounts divided by 12.
- Include PMI (mortgage insurance) and HOA dues the same way if they apply.
- PITI is what lenders compare to your income for the debt-to-income ratio.
Affordability check: lenders often want PITI under ~28% of gross monthly income. Divide PITI by income to see where you land — a quick sanity test before house-hunting.
Try it: interactive demo
Loan, rate, years, annual tax+ins.
Variations
Add PMI
Mortgage insurance:
P&I only
Loan payment:
Affordability
Share of income:
Pitfalls & errors
Annual to monthly. Divide yearly taxes/insurance by 12 before adding.
Sign of the loan. Enter the loan negative (or negate PMT) for a positive payment.
Estimates vary. Taxes and insurance change yearly; PITI is a planning figure.
Practice workbook
Frequently asked questions
How do I calculate a full mortgage payment (PITI) in Excel?
What does PITI stand for?
How do I include PMI or HOA?
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