PITI Calculator: Mortgage Calculator With Taxes and Insurance
TABLE OF CONTENTS
Move the sliders to find your monthly mortgage payments including taxes and insurance.
PITI Mortgage Calculator Help
If you’re looking for mortgage calculator with taxes and insurance, you’ve come to the right place. This PITI calculator shows you monthly mortgage payments but also shows the PITI costs over the lifespan (term) of the loan. You can get very granular by adjusting the sliders.
PITI Calculator Inputs
The mortgage amount is the total loan amount. It could be the purchase price of a home with a zero down mortgage. Or, it could be the purchase price minus the down payment. Or, it could simply be the loan amount for refinancing an existing mortgage.
Interest rates reflect the current cost of money as dictated by the appetite of investors and current markets to lend money (plus expected inflation). Mortgage interest rates are a combination of what bond market are doing plus little extra as the lender’s fee for facilitation a loan to a consumer.
The mortgage term is length of the mortgage payment period in years. The most common term is 30 years (e.g. a 30-year fixed mortgage). 15-year mortgages are less common but carry the advantage of a lower interest rate and they take less time to pay off. Naturally.
Annual Property Taxes
Most folks use 1% of a home’s value when calculating annual property taxes. Or said another way, $100 for every $1,000 valuation per year.
That said, regional differences apply. Some areas are lower (much lower) than 1% and some a slightly higher. State, city, county and local school districts can also levy fees that get layered together. The rate of your property taxes will depend upon where your home is located.
Furthermore, special tax districts can include portions (but not whole) counties. Yep, taxes can layer over neighborhoods.
Most areas in the United States are below 1% so it’s a relatively conservative figure to use in the PITI calculator above. However, major metropolitan areas usually have higher taxes to cover the costs of infrastructure like mass transportation systems, etc. If you live in a big city like Los Angeles, Seattle or San Francisco, it’s safer to use 1.25% as a conservative annual property tax estimate.
- $500,000 x 1% = $5,000 (per year)
Annual Home Insurance
Homeowner’s insurance covers liability and replacement costs (restoring a home busted up by floods, earthquakes, etc.) Costs vary based on factors like property location, price, square footage, upgrades, year built, proximity to flood zone and earthquake risk.
When using a PITI calculator, most folks use 0.25% – 0.40% to figure out their annual homeowner’s insurance costs. For the sake of argument, let’s pick something in the middle like 0.35%.
- $500,000 X .35%
- = $1750 (per year)
PITI Calculator Outputs
Monthly Principal & Interest (PI)
Monthly PI is the base amount for a mortgage payment. It includes both the portions of the principal (loan amount) and interest (cost of principal).
Total Cost of Principal & Interest
This is the total cost of PI over time. If payments are made every month for the entire duration of the term, or lifespan of the loan, borrowers will wind up paying the amount you see in this output area of PITI calculator above.
Monthly Principal, Interest, Taxes and Insurance (PITI)
The combination of PI and TI paid each month.
Total Cost of Principal, Interest, Taxes and Insurance
This output area in the PITI calculator shows to the total principal, interest, taxes and insurance paid over the term of the loan.