How to use it
- Enter the loan amount in dollars.
- Enter the annual PMI rate as a percent (e.g., 0.5 for 0.5%).
- Click the Calculate button to see your monthly PMI.
The PMI Calculator tells you exactly how much private mortgage insurance you'll pay each month. PMI is required when your down payment is less than 20 % of the home price, and it can add a noticeable amount to your housing cost. By entering your loan amount and the annual PMI rate, the tool divides the yearly insurance cost by 12 to give a clear monthly figure. Knowing this number helps you compare loan offers, budget accurately, and decide whether a larger down payment or a different loan structure makes sense. The result appears instantly, so you can adjust inputs on the fly and see how changes affect your monthly payment. You can also use the calculator to estimate the impact of refinancing or to verify the PMI amount disclosed by lenders.
Pro tips
- Round the loan amount to the nearest hundred to avoid tiny differences.
- Use the exact annual PMI percent from your loan estimate; 0.5 means 0.5 %.
- Remember the calculator shows monthly cost; multiply by 12 to see yearly impact.
- Double‑check that you entered the rate as a percent, not a decimal like 0.005.
Real-life examples
- A first‑time homebuyer comparing two loan offers with different PMI rates.
- A real‑estate investor estimating monthly cash flow on a property with a low down payment.
- A homeowner considering refinancing and wants to know how PMI will change.
Case study
Jane was buying a $250,000 house with a 5 % down payment. Using the PMI Calculator, she entered the loan amount of $237,500 and an annual PMI rate of 0.5. The tool showed a monthly PMI of $98, letting her budget accurately and decide to increase her down payment to eliminate the fee.