PMI calculator
Lenders often charge private mortgage insurance when the down payment is small. Enter the price, down payment, loan terms and the insurance rate quoted to you. You get the monthly cost, the payment with it included and how long it lasts on a normal repayment schedule.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the home price and your down payment as a percentage.
- Enter the loan rate and term.
- Enter the PMI rate from your quote and the balance level at which it can end.
How it works
- Loan = price × (1 − down payment ÷ 100); loan-to-value = loan ÷ price.
- Monthly PMI = loan × PMI rate ÷ 100 ÷ 12, charged only while the loan-to-value is above the removal level.
- The loan payment is the usual level (annuity) payment at the monthly rate.
- PMI months = payments until the scheduled balance is at or below the removal level × price.
Worked example
A 300,000 home with 5% down gives a 285,000 loan. At 6% for 30 years the payment is about 1,708.72. With a 0.5% PMI rate the insurance is 118.75 a month. The balance reaches 80% of the price (240,000) after about 118 months, so PMI totals roughly 14,013.
Tips
- A bigger down payment cuts or removes PMI and lowers the loan payment.
- Ask whether your lender drops PMI automatically or you must request it.
- The result is an estimate, not financial advice.
Frequently asked questions
What is PMI?
Private mortgage insurance protects the lender, not you, if the loan goes unpaid. Lenders usually ask for it when the loan is a large share of the home's value. Whether and when it applies depends on your lender and your country.
How is the monthly PMI worked out here?
Loan amount × the annual PMI rate ÷ 12. On a 285,000 loan at 0.5% that is 118.75 a month. The rate comes from your lender's quote; this tool has no built-in rate.
When does PMI stop?
Rules differ. This tool counts the months until your scheduled balance reaches the percentage of the purchase price you enter (80% is a common level, but check your loan terms). It ignores extra payments and price changes.
Does the PMI amount change over time?
Some policies keep a flat monthly amount, others recalculate each year on the balance. Here it stays flat, so the total is an upper estimate for the second kind.
Is this financial advice?
No. It is an estimate from the numbers you type. Ask your lender for the exact insurance cost and cancellation rules.