How to use it
- Enter the total loan amount in dollars.
- Type the annual PMI rate as a percent (e.g., 0.5 for 0.5%).
- Click the calculate button.
- Read the monthly PMI amount displayed.
Your PMI (Private Mortgage Insurance) is a monthly cost that protects lenders when you put down less than 20 % on a home. This calculator takes the loan amount and the annual PMI rate you’ve been quoted, then shows the exact monthly PMI you’ll owe. Knowing that figure helps you budget accurately, compare loan offers, and decide if paying a larger down‑payment or buying mortgage‑insurance‑free is worth it. The result appears as a dollar amount; if it looks high, consider ways to lower the rate or increase equity. No hidden steps—just a clear number you can plug into your monthly housing expense sheet. You can run the calculation as many times as you need, adjusting the loan balance or rate to see how changes affect your payment. This is especially useful when refinancing or when your loan balance drops and the PMI may be cancelled.
Pro tips
- Round the result to the nearest dollar for budgeting simplicity.
- If your rate is entered as a whole number, divide by 100 first.
- Test multiple loan amounts to see the impact of a larger down‑payment.
- Check your lender’s PMI cancellation threshold; the monthly cost may drop later.
Real-life examples
- First‑time buyer wants to know the extra cost of a low down‑payment loan.
- Refinancer compares PMI before deciding to keep the current mortgage.
- Homeowner checks if reaching 20 % equity will eliminate PMI payments.
Case study
Sara had a $180,000 loan with a 0.6% annual PMI. Using the calculator, she saw her monthly PMI was $90. She increased her down‑payment by $5,000, dropping the rate to 0.4% and saved $30 each month.