PMI Calculator
Calculate Private Mortgage Insurance (PMI) costs
Typically 0.5% to 1% annually
About This Calculator
The PMI Calculator estimates Private Mortgage Insurance costs. PMI is typically required when your down payment is less than 20% of the home purchase price. This calculator helps you understand PMI costs and plan your mortgage budget.
How It Works
- 1
Enter your total loan amount.
- 2
Input the PMI rate (typically 0.5% to 1% annually).
- 3
The calculator computes annual and monthly PMI costs.
Formula Explanation
Annual PMI = Loan Amount × (PMI Rate / 100)Multiply the loan amount by the PMI rate (as a decimal) to calculate the annual PMI cost.
Monthly PMI = Annual PMI / 12Divide the annual PMI by 12 to get the monthly PMI payment amount.
Tips
PMI typically ranges from 0.5% to 1% of the loan amount annually.
PMI can usually be removed once you reach 20% equity in your home.
Some lenders offer lender-paid PMI, which may have different terms.
PMI is typically required for conventional loans with less than 20% down.
FHA loans have MIP (Mortgage Insurance Premium) instead of PMI.