Free PMI Calculator • Updated for 2026
How This PMI Calculator Works
This PMI calculator estimates your monthly and annual private mortgage insurance cost based on your home price, down payment, loan amount, and PMI rate.
Private mortgage insurance is commonly required when a buyer makes a down payment of less than 20% on a conventional mortgage.
What Is PMI?
PMI stands for private mortgage insurance. It protects the lender if a borrower stops making payments, but it is usually paid by the homeowner as part of the monthly mortgage cost.
When Is PMI Required?
PMI is typically required when your down payment is less than 20% of the home price. If your down payment is 20% or more, PMI is often not required.
Why Use a PMI Calculator?
A PMI calculator helps you estimate how much mortgage insurance could add to your monthly payment. It can also help you compare different down payment amounts and see how reaching 20% down may reduce your housing cost.
Savings Tip
Increasing your down payment to 20% or more can eliminate PMI completely and significantly reduce your total monthly housing cost.
Example Scenario
For example, a $350,000 home with a 10% down payment and a 0.5% PMI rate could cost about $130 per month in PMI. Increasing the down payment to 20% would remove this cost entirely.
FAQ
How is PMI calculated?
PMI is commonly estimated as a percentage of the loan amount. The annual PMI cost is divided by 12 to estimate the monthly cost.
Is PMI required with 20% down?
PMI is typically not required when your down payment is 20% or more on a conventional loan.
Does PMI go away automatically?
PMI may be removed once you reach certain equity levels, depending on your loan type, lender rules, and payment history.
Is this PMI calculator exact?
No. This calculator provides an estimate. Actual PMI costs may vary based on lender guidelines, credit score, loan type, and mortgage terms.