How to use it
- Enter the home price in dollars.
- Enter your down‑payment amount.
- Enter the annual PMI rate as a percent (e.g., 0.5 for 0.5%).
- Click calculate to see your monthly PMI.
What it does – The PMI Calculator takes your home price, down‑payment and the annual PMI percentage and instantly shows the monthly private mortgage insurance payment. Why it matters – PMI can add several hundred dollars to each mortgage payment until you reach the required equity, affecting cash flow and budgeting. Reading the result – The figure displayed is the extra amount you’ll pay every month on top of principal, interest, taxes and insurance. Use it to compare loan offers, decide how much to put down, or plan for the months before PMI drops off. No hidden fees, no accounts needed – just a clear, actionable number.
Pro tips
- Round the home price and down‑payment to the nearest hundred to avoid tiny rounding errors.
- If your PMI rate is given as a decimal (e.g., 0.005), convert it to a percent (0.5) before entering.
- Enter the exact down‑payment amount, not the percentage, for the most accurate monthly figure.
- Remember PMI stops once you reach 20% equity, so use the monthly result to estimate how long you’ll pay it.
Real-life examples
- First‑time buyer checking if a 5% down‑payment will keep monthly costs under budget.
- Refinance candidate comparing PMI costs between a 10% and 20% down scenario.
- Real estate investor estimating extra cash needed for a rental property purchase.
Case study
Maria wanted to buy a $300,000 home with a $15,000 down‑payment. Using the calculator, she saw a $112 monthly PMI charge, prompting her to increase her down‑payment to $30,000, which eliminated PMI and saved her $1,344 a year.