MoneyFree, ad-light financial calculators for India, the US and the Gulf – each with the formula, a worked example and a quick-reference table.
Full monthly housing cost: Principal, Interest, property Taxes, homeowners Insurance and PMI.
Formula
PITI = P&I + (price × tax% / 12) + (insurance / 12) + PMI. PMI applies while the loan-to-value ratio is above 80%.
Worked example
$400,000 home, $60,000 down (85% LTV), 6.5% for 30 years, 1.1% tax, $1,800 insurance, 0.6% PMI: P&I $2,149 + tax $367 + insurance $150 + PMI $170 = $2,836/month.
Quick reference
| Home price | 20% down PITI | 10% down PITI (with PMI) |
|---|---|---|
| $300,000 | $1,972 | $2,283 |
| $400,000 | $2,629 | $3,044 |
| $600,000 | $3,944 | $4,566 |
6.5%/30yr, 1.1% tax, $1,800 insurance.
Frequently asked questions
What is PITI?
PITI stands for Principal, Interest, Taxes and Insurance - the four parts of a typical monthly mortgage payment held in escrow by the lender. Add PMI when the down payment is below 20%.
When does PMI go away?
By law, PMI on a conventional loan must be cancelled automatically once the loan balance reaches 78% of the original home value, and you can request removal at 80%.