How to use it
- Enter the loan amount
- Enter the down payment
- Enter the PMI rate and click Calculate
Your PMI Cost Calculator shows exactly how much private mortgage insurance will add to your monthly payment and what it will cost over the life of a 30‑year loan. PMI is charged as a percentage of the loan balance, usually between 0.5 % and 1.25 % per year. The tool multiplies your loan amount by the rate you provide, divides by 12 for the monthly figure, and then projects that amount for 360 months. Seeing the monthly and total numbers helps you compare loan offers, decide how much to put down, or evaluate when you can cancel PMI. For example, a $200,000 loan with a 0.8 % rate yields $133.33 per month and about $48,000 over 30 years. Use the results to budget accurately and negotiate smarter.
Pro tips
- Round the PMI rate to two decimal places for consistency
- Enter the down payment to see the actual loan amount used in the calculation
- If the rate is below 0.5% double‑check; most lenders start at 0.5%
- Remember the total assumes PMI stays for the full 30 years; you can often cancel earlier
Real-life examples
- First‑time homebuyer deciding if a 5% down payment is affordable
- Refinance comparison to see how PMI changes between two loan offers
- Real‑estate investor budgeting cash flow for a rental with a low down payment
Case study
Jane needed to know how much PMI would eat into her budget. Using the calculator, she entered a $250,000 loan with a 0.9% rate and saw a $187.50 monthly cost, $67,500 over 30 years. She increased her down payment, which dropped the loan to $220,000, cutting her monthly PMI to $165 and saving $5,400 in total.