How to use it
- Enter the loan amount in dollars.
- Input the annual PMI rate as a percent.
- Click Calculate to see your monthly PMI.
What it does – The Free PMI Calculator turns your loan amount and the annual PMI percentage into the exact amount you’ll pay each month for private mortgage insurance. Why it matters – PMI can add hundreds of dollars to your monthly housing cost. Knowing the precise figure helps you budget, compare loan offers, and decide if you can reach the 20 % equity threshold to drop the insurance. How to read the result – The calculator shows a single dollar amount labeled Monthly PMI. That number is what will be added to your mortgage payment until you meet the required equity or refinance. No hidden fees or extra steps—just the monthly PMI amount. You can also experiment with different loan sizes or PMI rates to see how small changes affect your budget, making it easier to plan for a larger down payment or faster principal payoff.
Pro tips
- Round the loan amount to the nearest thousand for a quick mental check.
- If the rate has more than two decimals, keep them for accuracy before rounding the final monthly figure.
- Enter the rate as a percent (e.g., 0.5 for half a percent) not as a decimal fraction.
- Remember the result is monthly; multiply by 12 to see the yearly PMI cost.
Real-life examples
- First‑time homebuyer estimating extra cost before deciding on a 5% down payment.
- Refinance planner comparing PMI savings after reaching 20% equity.
- Real‑estate investor calculating cash‑flow impact of a high‑ratio loan.
Case study
Maria borrowed $250,000 with a 0.5% annual PMI. The calculator showed $104.17 per month, so she adjusted her down payment to 22% and eliminated the $1,250 yearly PMI, freeing cash for renovations.