Principal, Interest, Taxes, Insurance (PITI)

Definition

PITI is the monthly cash outflow associated with a financed property: principal repayment + interest + property taxes + homeowner's insurance (often escrowed by the lender). DSCR lenders use PITI as the denominator of the DSCR ratio, and conventional lenders use PITI plus HOA dues as the housing-expense component of debt-to-income. PITI does not include HOA, mortgage insurance, or maintenance reserves — those are PITI-adjacent line items investors track separately.

Formula

Worked example

A $300,000 loan at 7.5% on a 30-year term has P&I of $2,098/mo. With $4,800/yr property tax ($400/mo) and $1,800/yr insurance ($150/mo), PITI = $2,648/mo. If the property rents for $3,200, DSCR = 3,200 / 2,648 = 1.21.

How DealIntel uses it

DealIntel models PITI across hard money, DSCR, construction, and conventional financing scenarios. The financing comparison surface shows monthly PITI, total carry cost, and break-even occupancy for each loan product side-by-side.

Related terms

• Debt-Service Coverage Ratio Loan · DSCRAn investment property loan qualified on the property's rental income rather than the borrower's W-2 income.
• Loan-to-Value · LTVThe ratio of a loan amount to the appraised value of the underlying property.
• Hard Money LoanShort-term, asset-collateralized real estate financing from a private lender — fast to close, higher-cost.

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