Private Mortgage Insurance
Estimate the PMI cost when your down payment is below 20 percent.
About Private Mortgage Insurance
PMI protects the lender and is required when the down payment is under 20 percent, keeping the loan-to-value above 80 percent. The monthly cost is the loan times the PMI rate divided by twelve. PMI adds a recurring cost that a higher down payment avoids, so it should factor into your down payment decision.
Formula
Private Mortgage Insurance
PMI monthly = loan x PMI rate / 12, only when LTV is above 80%
- LTV
- loan-to-value of the home
Worked example
With the default values below, Private Mortgage Insurance returns PMI Monthly of $112.50. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Home price
- 300,000
- Down paymentaccepts 0–100 %
- 10 %
- PMI rateaccepts 0–3 %
- 0.5 %
Results
- Loan Amount
- $270,000.00
- Loan to Value
- 90.00%
- PMI Monthly
- $112.50
- PMI Annual
- $1,350.00
Step by step
- 1Values used
- 2Private Mortgage Insurance
- 3PMI Monthly= 112.50
- 4Loan Amount= 270,000.00
- 5Loan to Value= 90.00
- 6PMI Annual= 1,350.00
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Private Mortgage Insurance calculated?
PMI monthly = loan x PMI rate / 12, only when LTV is above 80% PMI protects the lender and is required when the down payment is under 20 percent, keeping the loan-to-value above 80 percent. The monthly cost is the loan times the PMI rate divided by twelve.
Why does Private Mortgage Insurance matter?
PMI adds a recurring cost that a higher down payment avoids, so it should factor into your down payment decision.
What values do I need to enter?
This calculator takes 3 inputs: Home price, Down payment, PMI rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.