How to use it
- Enter the loan amount in dollars.
- Set the down‑payment percentage as a decimal (e.g., 0.2 for 20%).
- Input the lender’s PMI rate as a decimal (e.g., 0.005 for 0.5%).
- Read the monthly, annual and total annual PMI results.
The How To Figure Out PMI Calculator takes three inputs—your loan amount, the percentage you’re putting down, and the lender‑provided PMI rate. It instantly shows three figures: Monthly PMI, Annual PMI, and Total Annual PMI. Knowing these numbers lets you compare loan offers, decide whether a larger down payment makes financial sense, and budget your mortgage payment accurately. The monthly figure is what will appear on your mortgage statement each month, while the annual totals help you see the long‑term cost of private mortgage insurance. Because the calculation uses only the numbers you provide, the result reflects your specific situation, not a generic estimate. If your down payment is 20% or more, the calculator will show $0 PMI, confirming you can avoid the extra charge. For lower down payments, the tool quantifies exactly how much extra you’ll pay each month, making it easier to decide if paying points or a larger upfront payment is worthwhile.
Pro tips
- Round the PMI rate to four decimals to keep the monthly figure accurate.
- Enter the down payment as a decimal (0.2 for 20%) to avoid mis‑calculations.
- Compare the monthly PMI against the potential savings of a larger down payment.
- If your down payment reaches 20%, the calculator will output $0 PMI, confirming you can skip the extra cost.
Real-life examples
- First‑time homebuyer evaluating a 10% down payment option.
- Real estate investor estimating cash‑flow impact of PMI on a rental property loan.
- Mortgage refinance applicant checking whether the new loan’s PMI cost offsets the lower rate.
Case study
Sarah wanted to buy a $250,000 house with a 10% down payment. Using the calculator, she saw a $104 monthly PMI cost, $1,250 annually. She increased her down payment to 15% and reduced PMI to $62/month, saving $504 a year, which helped her qualify for a lower overall monthly payment.