US Mortgage PITI Calculator
Full monthly payment including Principal, Interest, Property Tax, Insurance, and PMI. State-level property tax rates for all 50 states.
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Taxes & insurance
Average effective property tax rate for TX
What is PITI and why does it matter?
Most mortgage calculators only show P&I. But lenders qualify you on PITI — and so should you when deciding what you can afford.
Principal (P)
The portion of each payment that reduces your loan balance. Grows over time as your balance drops.
Interest (I)
The cost of borrowing. On a $400k loan at 7%, you pay $28k in interest in the first year alone.
Taxes (T)
Annual property tax divided by 12. Varies massively by state — NJ (2.49%) vs Hawaii (0.28%). The biggest variable in PITI after the loan itself.
Insurance (I)
Homeowners insurance (HO-6/HO-3) and if down payment < 20%, PMI — Private Mortgage Insurance of 0.3–1.5%/year of the loan amount.
Frequently Asked Questions
What is the 28% rule for mortgage affordability?
Conventional wisdom says your total PITI payment should not exceed 28% of your gross monthly income. Some lenders stretch this to 31%. On a $100,000 annual salary ($8,333/month gross), the 28% rule suggests a max PITI of $2,333/month. Run the numbers to see what purchase price that translates to given your interest rate and state.
When does PMI end?
PMI ends when your loan-to-value (LTV) ratio reaches 80% — either through regular payments, extra principal payments, or home value appreciation. You can request cancellation from your servicer when your LTV is 80% based on original value, and it automatically terminates at 78% LTV if you have not requested it. This can take 7–11 years on a standard 30-year mortgage at 20%+ LTV start.
How do I avoid PMI?
Three main ways: (1) Put down 20% or more. (2) Use a "piggyback loan" — an 80/10/10 structure where a second loan (10%) covers part of the down payment, so the primary mortgage is at 80% LTV. (3) Some VA loans (veterans) and USDA loans have no PMI. Note that some lenders offer "no PMI" mortgages with a slightly higher interest rate — calculate which costs less over your expected holding period.
Why is property tax so different between states?
Property tax rates vary enormously because they are set by counties and municipalities, not the federal government. States like New Jersey (avg 2.49%) and Illinois (2.27%) have high rates, partly because local government services (especially schools) rely heavily on property taxes. Hawaii (0.28%) and Alabama (0.41%) are among the lowest. Your actual rate will depend on the specific county and municipality — these are effective averages.
Understanding PITI and US Mortgages
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical US mortgage payment. Most online calculators only show principal and interest, which is why buyers are often shocked when their real monthly payment arrives hundreds of dollars higher. Lenders qualify you on the full PITI figure, so it is the number that actually determines what you can afford.
The four parts of the payment
Principal is the portion that reduces your loan balance. Interest is the cost of borrowing — early in a 30-year loan, the large majority of each payment is interest, not principal. Taxes are annual property taxes divided into monthly amounts and held in escrow. Insurance covers homeowners insurance and, when applicable, PMI. The lender typically collects taxes and insurance in an escrow account and pays those bills on your behalf, which is why they are bundled into the monthly figure.
Property tax — the biggest variable
After the loan itself, property tax is the largest swing factor in PITI, and it varies enormously by state. New Jersey averages around 2.49% of home value per year and Illinois 2.27%, while Hawaii (0.28%) and Alabama (0.41%) are at the other extreme. On a $400,000 home, that is the difference between roughly $112 and $830 a month in tax alone. Two identical homes at the same price can have wildly different monthly payments purely because of where they sit.
PMI and the 20% down payment
If your down payment is below 20%, lenders require Private Mortgage Insurance (PMI) — typically 0.3% to 1.5% of the loan per year — which protects the lender, not you. PMI automatically terminates once your loan-to-value ratio reaches 78%, and you can request cancellation at 80%. Putting down 20% avoids PMI entirely; alternatives include a piggyback (80/10/10) loan structure or lender-paid PMI in exchange for a slightly higher rate. On a longer hold, doing the math on which is cheaper is worth the effort.
How much house can you afford?
The classic guideline is the 28/36 rule: total PITI should not exceed 28% of gross monthly income, and total debt payments (including car loans, student loans, and credit cards) should stay under 36%. On a $100,000 salary — $8,333 gross per month — the 28% rule caps PITI at about $2,333. Working backward from that ceiling, given current rates and your state's property tax, tells you the realistic purchase price far more accurately than a principal-and-interest-only estimate.
Interest over the life of the loan
The total interest paid over 30 years can rival the price of the home itself. A $320,000 loan at 7% costs roughly $446,000 in interest over the full term — more than the original principal. This is why even small rate differences, extra principal payments, or a 15-year term instead of 30 have such a large effect on lifetime cost. Seeing the total interest figure alongside the monthly payment puts the true cost of the loan in perspective.