PMI Calculator

Written by Great Medico

Updated September 25, 2026 •2 min read

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Small changes in rates, timing, or amounts can materially change a finance result. PMI Calculator estimates private mortgage insurance cost from home price, down payment, and the annual PMI rate entered, which makes the assumptions easier to test side by side.

What this calculator does

PMI Calculator estimates private mortgage insurance cost from home price, down payment, and the annual PMI rate entered. The visible inputs are home price, down payment, and pmi rate. Its result is driven by those values, so the calculation can be reproduced or stress-tested without relying on a hidden live-data feed.

How to use it

Enter Home price, Down payment, and PMI rate. Keep all monetary inputs in the same currency; the currency selector formats results and does not perform foreign-exchange conversion. Enter percentage or rate fields on the scale displayed by the form; do not silently convert them to a different percentage or decimal convention. Before calculating, recheck Home price, Down payment, PMI rate against the source values you intend to model. Use the labels on PMI Calculator as the source of truth and recheck any prefilled value before relying on the result.

How the calculation works

Loan amount = home price − down payment. Annual PMI = loan amount × PMI rate, and monthly PMI = annual PMI ÷ 12. Loan-to-value is loan amount ÷ home price. PMI Calculator applies that relationship only to the inputs represented on its form. If the result looks surprising, verify the entered values, units, and signs before interpreting the number.

Example

On a $400,000 home with $40,000 down, the modeled loan is $360,000. At a 0.5% annual PMI rate, annual PMI is $1,800, or $150 per month. The example is a math check for PMI Calculator; replace the sample values with your own inputs rather than treating the example as a target or recommendation.

How to interpret the result

PMI cost scales with the insured loan balance and the entered premium rate. The calculator is useful for comparing down-payment scenarios but does not decide whether PMI is required. A change in the result should be traced back to the input that changed before you draw a practical conclusion.

Limitations and notes

Actual PMI pricing depends on lender and insurer criteria such as credit, LTV, loan type, occupancy, and coverage. Federal cancellation rules can allow PMI removal at specified balance thresholds for many conventional loans, but FHA and VA insurance follow different rules. For many conventional mortgages, federal rules allow a borrower to request PMI cancellation around 80% of original value when conditions are met; FHA and VA insurance follow different rules. The safest way to reuse this calculation later is to keep the source values and date with the result.