PITI Mortgage Calculator

PITI stands for Principal, Interest, Taxes, and Insurance. It represents the four components of a standard monthly mortgage payment. Principal is the loan repayment. Interest is the cost of borrowing. Taxes refers to property tax, and Insurance refers to homeowners insurance. Together they make up the total monthly housing cost used by lenders to assess affordability.

Most conventional lenders require a Debt Service Coverage Ratio (DSCR) of 1.25 for investment properties, meaning rental income must be at least 125% of the monthly debt service (PITI). Some DSCR loan products accept ratios as low as 1.0, while more conservative lenders require 1.30 or above. A higher DSCR makes approval more likely and may secure better loan terms.

California property tax rates are capped at 1% of assessed value under Proposition 13, plus local levies that typically add 0.2%–0.5%. Total effective rates are usually 1.1%–1.3%. Assessed value is set at purchase price and can only increase by up to 2% per year until the property is sold. This makes California taxes predictable for long-term holders but can mean significant jumps after a sale.

Texas has no state income tax but funds local services largely through property taxes. Effective rates typically range from 1.6% to 2.5% of assessed value, making Texas one of the highest property tax states in the country. In Dallas-Fort Worth and Houston metro areas, rates of 2.0%–2.3% are common. Tax bills are based on annually appraised market value.

New York State property tax rates vary widely. New York City applies complex assessment rules that often result in lower effective rates for residential properties. Outside the city, suburban counties in Westchester, Nassau, and Suffolk can have effective rates of 2.0%–3.0%, among the highest in the country. Upstate New York also tends to have high rates due to local school district funding requirements.

Florida effective property tax rates typically range from 0.8% to 1.2% of assessed value, below the national average. Rates vary by county: Miami-Dade, Broward, and Palm Beach counties tend to have rates around 1.0%–1.1%. Florida offers a Homestead Exemption for primary residences but investment properties do not qualify. Assessment increases are capped at 10% per year for non-homestead properties.

No. HOA fees are not part of PITI but lenders do include them when calculating your debt-to-income ratio. If your property has an HOA, add the monthly fee to your PITI when assessing affordability and cash flow. Some DSCR loan calculations also deduct HOA fees from rental income before calculating coverage.

PITI-to-rent ratio measures what percentage of your gross monthly rent the PITI payment consumes. A ratio of 75% means $750 of every $1,000 in rent goes to PITI, leaving $250 for other expenses. Most investors target a PITI-to-rent ratio below 80% to maintain positive cash flow after factoring in vacancy, maintenance, and management costs.

PITI can be reduced by making a larger down payment (reduces principal and interest), shopping for a lower interest rate, appealing your property tax assessment, or comparing insurance providers for a lower premium. Refinancing at a lower rate when market rates fall also reduces the P+I component. You cannot reduce property tax by negotiating with your lender.

Yes. For rental properties, mortgage interest is fully deductible as a business expense on Schedule E. This applies to the interest portion of your monthly payment, not the principal. Property tax on rental properties is also deductible. These deductions reduce your taxable rental income and are separate from the mortgage interest deduction rules that apply to primary residences under the Tax Cuts and Jobs Act.