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.

Matt Abadi is the founder of DealIntel. He leads the development of the platform's six-strategy underwriting engine, 25-point Kill List, and Monte-Carlo financial model — the institutional analysis stack DealIntel applies to every fix and flip deal. DealIntel was founded in 2025 with the central thesis that knowing when not to invest is the most valuable number on the page.