Why is my mortgage payment more than just principal and interest?

Your total monthly mortgage payment, often called PITI, also includes property taxes and homeowners' insurance. Lenders collect these funds in an escrow account and pay them on your behalf to ensure the property is protected.

How can I lower my PITI payment?

You can lower your PITI payment by making a larger down payment (which reduces the principal), finding a lower interest rate, or shopping around for more affordable homeowners' insurance. Property taxes are generally non-negotiable.

The Ultimate Guide to Mortgage Calculators & PITI

Buying a home is the largest financial decision most people will ever make. A mortgage calculator is your single most important tool in this journey, but only if you understand what it's truly calculating: your **total monthly housing cost.**

Many basic calculators only show you principal and interest. This is dangerously incomplete. This guide explains the concept of PITI—the four parts of a real mortgage payment—and shows you how a world-class calculator can give you the clarity you need.

Calculate Your True Mortgage Payment

Our world-class Mortgage Calculator helps you estimate your complete monthly PITI payment and visualizes the breakdown with a simple chart.

Use the PITI Mortgage Calculator →

Understanding PITI: The 4 Parts of a Mortgage Payment

PITI is an acronym that stands for the four components of your total monthly payment:

Principal: The portion of your payment that goes directly to paying down the amount you borrowed.
Interest: The percentage the bank charges you for the loan. This is where the lender makes their profit.
Taxes: Property taxes, which are collected by your local government. Your lender typically collects these from you each month and pays the government on your behalf from an escrow account.
Insurance: Homeowners insurance, which protects your property against damage. Like taxes, this is usually collected monthly into an escrow account.

Ignoring taxes and insurance can lead to a surprise bill that is hundreds or even thousands of dollars more per month than you expected.

A person using a calculator with a miniature house, keys, and coins on the desk, symbolizing home financing.

How a PITI Calculator Empowers You

Using a comprehensive mortgage calculator that includes all four PITI components is essential for smart home buying. It allows you to:

Know Your Real Budget: You can determine exactly how much house you can truly afford on a monthly basis.
Compare Loan Offers Accurately: See how different interest rates affect your complete payment, not just the principal and interest portion.
Visualize Your Costs: Our calculator's donut chart provides an instant visual breakdown, so you can see exactly where every dollar of your payment is going.
Plan for the Future: By seeing the full amortization schedule, you can understand how your equity will build over time.

Important Financial Disclaimer

This article and our calculator provide estimates for informational purposes only and do not constitute financial advice. Property taxes and insurance premiums can vary significantly by location. For an official loan estimate, consult with a qualified mortgage lender.