PITI stands for Principal, Interest, Taxes, and Insurance. These are the four components of a monthly mortgage payment. Principal is the part that pays down your loan balance. Interest is the cost of borrowing. Taxes are property taxes paid to the local government. Insurance is homeowners insurance to protect your property.

What is an amortization schedule?

An amortization schedule is a table detailing each periodic payment on a loan. It shows how much of each payment is applied to interest and how much is applied to the principal balance. Over time, the interest portion of the payment decreases while the principal portion increases.

Why is my interest payment so high at the beginning of the loan?

This is how amortization works. Interest is calculated on the outstanding loan balance. In the early years, your balance is highest, so most of your payment goes toward interest. As you pay down the principal, the interest due each month decreases, allowing more of your fixed payment to go toward the principal.

Mortgage Calculator with PITI & Amortization

Your Estimated Monthly Payment

Total Interest Paid

Total Cost of Loan

Monthly PITI Payment

Amortization Schedule

Year	Beginning Balance	Interest Paid	Principal Paid	Ending Balance

Turning the Dream of Homeownership into a Plan

Buying a home is more than just a purchase; it's one of the biggest financial commitments you'll ever make. The advertised price of a house is only the beginning. Your true monthly cost includes not just the loan payment (principal and interest), but also property taxes and homeowners insurance. This complete payment is known as **PITI**, and it's the number you need to budget for.

This calculator is designed to give you that full picture. It doesn't just calculate your monthly payment; it breaks down how much of your money goes to interest versus paying down your loan. The **amortization schedule** below shows you, year by year, how you build equity and how the bank profits from your loan. Use this tool to compare different loan scenarios and step into homeownership with your eyes wide open.

Plan Your Home Buying Journey

Home Affordability Calculator: Determine how much house you can realistically afford based on your income and debts.
Rent vs. Buy Calculator: Analyze the financial pros and cons of renting versus buying a home in your area.
Mortgage Payoff Calculator: See how making extra payments can shorten your loan term and save you thousands in interest.

Frequently Asked Questions (FAQ)

What is a good down payment?

A 20% down payment is the traditional benchmark. The main benefit is that it allows you to avoid paying Private Mortgage Insurance (PMI), an extra fee that protects the lender if you default. However, many loan programs allow for much smaller down payments, some as low as 3-5%.

What's the difference between Interest Rate and APR?

The **Interest Rate** is the cost of borrowing the money, expressed as a percentage. The **Annual Percentage Rate (APR)** is a broader measure of the loan's cost. It includes the interest rate PLUS other loan fees, such as origination fees and closing costs. The APR is usually slightly higher than the interest rate and gives a more accurate picture of the total cost.