How to use it
- Enter the loan amount.
- Enter the down payment.
- Click Calculate.
- Read the PMI percentage result.
What it does The PMI Percentage Calculator takes your total loan amount and the down payment you plan to make, then shows the private mortgage insurance (PMI) as a percent of the loan. PMI matters because lenders require it when your down payment is below 20 % of the loan, and the percentage tells you how much of each monthly payment goes to insurance.
How to read the result The displayed number is the share of the loan that will be covered by PMI. A higher percentage means a larger insurance cost, so you can compare scenarios—larger down payment lowers the PMI percent instantly.
Use the calculator to test different down payment amounts before you apply. For example, on a $200,000 loan a $20,000 down payment yields a PMI of 9 % (180,000/200,000 × 100). Raising the down payment to $40,000 drops PMI to 8 % (160,000/200,000 × 100), saving you money each month.
Pro tips
- Round the result to one decimal place for budgeting.
- Enter numbers without commas; the calculator strips them automatically.
- If your down payment is 0, PMI will be 100 %.
- Compare multiple scenarios by adjusting the down payment and noting the percentage change.
Real-life examples
- First‑time homebuyer checking if a 10 % down payment triggers PMI.
- Refinance planner evaluating how a larger equity contribution reduces PMI.
- Real‑estate investor estimating monthly costs for a rental property purchase.
Case study
Sarah wanted a $250,000 mortgage. Using the calculator, she saw that a $25,000 down payment gave a PMI of 10 %. By increasing her down payment to $50,000, the PMI fell to 8 %, cutting her monthly payment by $150. She secured the loan with lower insurance costs.