How to use it
- Enter the loan amount you plan to borrow
- Enter your down‑payment amount
- Enter the annual PMI rate as a percent
- Read the monthly and annual PMI results
What it does – The PMI Per Month Calculator takes your loan amount, subtracts your down payment, applies the annual PMI rate you provide, and divides by 12 to show the exact monthly PMI you’ll pay. It also multiplies that monthly figure by 12 to give the annual PMI amount.
Why it matters – Private Mortgage Insurance can add several hundred dollars to each mortgage payment. Knowing the precise cost helps you budget, compare loan offers, and decide whether a larger down payment or a different loan program saves you money.
How to read the results – The Monthly PMI line is the amount added to each mortgage payment. The Annual PMI line shows the total extra cost over a year, useful for cash‑flow planning and tax considerations.
Pro tips
- Round your down payment to the nearest $100 to avoid tiny calculation errors
- If your PMI rate has two decimal places, keep them for accuracy before the division
- Enter the rate as a percent (e.g., 0.5 for 0.5%), not as a decimal
- Double‑check that the loan amount minus down payment matches the balance you expect to insure
Real-life examples
- First‑time homebuyer wants to see how a 5% down payment affects monthly costs
- Refinance candidate compares PMI on a new loan versus keeping the current one
- Real‑estate investor calculates PMI for multiple properties to forecast cash flow
Case study
Sarah needed to decide between a 3% and a 10% down payment on a $250,000 loan. Using the calculator, she saw a monthly PMI of $104 with 3% down versus $0 with 10% down, helping her choose the larger down payment and save $1,248 annually.