Mortgage Calculator with Taxes and Insurance (PITI) – Free 2025 Tool + Complete Guide
Estimate your full monthly mortgage payment including principal, interest, taxes, and insurance (PITI). This guide explains exactly how each cost is calculated and how to lower your payment in 2025.
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Payment Breakdown
Loan Summary
Understanding Your Mortgage
Principal vs Interest
In the early years of your mortgage, most of your monthly payment goes toward interest. As you pay down your loan, more goes toward principal.
Extra Payments
Making even small additional payments can significantly reduce your loan term and save thousands in interest over the life of your loan.
Amortization
An amortization schedule shows how your loan balance decreases over time as you make payments, eventually reaching zero at the end of your loan term.
Quick Summary (TL;DR)
- PITI = Principal + Interest + Property Taxes + Homeowners Insurance
- Many loans also add PMI and HOA dues — we show how they impact payment
- Lower your payment by improving credit, shopping rates, or removing PMI
- Refinancing can reduce rate and remove PMI if you’re at ≥20% equity
What Does PITI Include?
Your mortgage payment typically includes four components known as PITI: principal, interest, property taxes, and homeowners insurance. Some borrowers also pay PMI (Private Mortgage Insurance) when putting less than 20% down, and certain properties add HOA dues.
- Principal: The portion that reduces your loan balance.
- Interest: The cost charged by the lender to borrow money.
- Taxes: Annual property taxes, usually collected monthly in escrow.
- Insurance: Homeowners policy to protect the property.
- PMI: Insurance required with low down payments on conventional loans.
- HOA: Monthly dues for community maintenance (if applicable).
Want a Lower Payment?
Compare refinance options to drop your rate and potentially remove PMI if your equity is 20%+.
Check Refinance OptionsCalculate Your SavingsHow to Estimate Taxes, Insurance, and HOA
- Property Taxes: Check county tax records; estimate 0.8%–1.5% of value per year depending on location.
- Homeowners Insurance: Often 0.3%–0.6% of value annually; get quotes to refine.
- HOA: Use the seller’s disclosure or HOA website; enter monthly amount.
- PMI: Typically 0.3%–1.5% of loan amount annually; disappears at 78–80% LTV.
Strategies to Reduce Your PITI
- Improve your credit score to qualify for a lower rate.
- Shop multiple lenders and negotiate fees.
- Boost down payment to reduce PMI and principal.
- Appeal assessed value to lower property taxes where appropriate.
- Bundle insurance policies and raise deductibles responsibly.
- Refinance when rates drop and remove PMI at ≥20% equity.
Related Resources
Meet Sarah
Senior Mortgage Advisor & VA Loan Specialist
Sarah Mitchell brings over 12 years of mortgage industry expertise, specializing in VA loans and first-time homebuyer programs. As a certified NMLS professional, she has helped thousands of veterans and military families achieve homeownership through specialized loan programs. Her deep understanding of VA benefits and down payment assistance programs makes her a trusted advisor for service members transitioning to civilian life.
EXPERTISE:
KEY ACHIEVEMENT:
Helped 2,500+ veterans secure home loans