PITI Ratio Calculator

in Financial Planning by

One of the most important considerations related to purchasing a home is “PITI”, which is the monthly sum of what makes up your mortgage payment:

  • Principal
  • Interest
  • Taxes
  • Insurance

Lenders will calculate your PITI to determine if you are a good candidate for a loan. Knowing what percentage of your gross monthly income will go to your PITI payments will give you a head start on determining how much house you can afford.

We suggest that spending 28% of your gross monthly income on PITI payments is a good rule of thumb.

Calculate the percentage of your gross monthly income that make up your potential PITI payments, and see where you stand in relationship to your long-term finances.

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