PMI Calculator

What is PMI Calculator?

Estimate monthly private mortgage insurance from loan balance and annual PMI rate.

• Estimate mortgage payments and real housing cost after taxes and insurance.
• Compare renting and buying over a multi-year horizon.
• Create an early estimate for down payment, budget, and affordability.

Scope and country basis

English pages are intended for English-speaking markets. Use the country/currency selector for United States, United Kingdom, Canada, Australia, or China where available.

Policy-sensitive results vary by jurisdiction. When a local rule is not implemented, the calculator uses your entered rates, deductions, premiums, or assumptions instead of pretending one country fits all.

What each input means

Loan amount

Money field, formatted in the selected currency.

Annual PMI rate

Percentage field: enter 8 for 8%.

Formula and interpretation

The core formula is: Monthly PMI = Loan balance × annual PMI rate / 12. If a country/currency selector is available, money is formatted for that market. Policy-sensitive fields use the selected market where implemented, otherwise they remain user-entered assumptions.

Use the result for first-pass comparison, budgeting, scenario planning, and discussion prep. Before filing taxes, applying for credit, buying insurance, or investing, verify the result against local rules, contracts, and professional advice.

Key concepts

Key inputs for this tool

PMI Calculator mainly depends on Loan amount, Annual PMI rate. Keep time period, currency, and definitions consistent before comparing outputs.

Total housing cost

Real ownership cost includes more than principal and interest.

Down payment and liquidity

Higher down payment lowers payment but uses cash reserves.

Holding period

Buy-versus-rent economics depend heavily on how long you stay.

How to read the result

• Read the core PMI Calculator output first, then the supporting metrics and scenarios rather than cherry-picking one favorable number.
• Place mortgage output inside household cash flow.
• Stress-test higher rates, lower income, and flat home value.
• Verify local policy, tax, insurance, and lending rules.

How to use it

1. Enter home price, down payment, rate, term, and housing-cost assumptions.
2. Review payment, total interest, affordability, or rent-vs-buy output.
3. Adjust down payment, term, rate, and holding period to compare household cash flow.
4. Before buying, verify local rules, taxes, insurance, and lender underwriting.

Common mistakes

• Looking only at mortgage payment.
• Assuming appreciation fixes every decision.
• Applying one country's mortgage rules everywhere.

Suggested workflow

1. Estimate basic payment.
2. Add taxes, insurance, and ownership costs.
3. Use affordability and rent-vs-buy tools for decision validation.

Worked example and U.S. PMI scope

Enter a loan balance of $300,000 and a borrower-provided annual PMI rate of 0.6%. The calculator applies $300,000 x 0.6% / 12 and returns an estimated monthly PMI of $150.

Loan balance

$300,000

Annual PMI rate

0.6%

Estimated monthly PMI

$150

The U.S. Consumer Financial Protection Bureau explains that private mortgage insurance protects the lender, not the borrower, and may be paid monthly, up front, or both. Use the rate from a lender estimate or disclosure rather than treating 0.6% as a default market quote.

This arithmetic estimate does not determine whether PMI is required or when it ends. CFPB's PMI cancellation guidance describes conditions for many eligible U.S. mortgages; FHA, VA, lender-paid, and non-U.S. mortgage-insurance rules differ.

Method and review boundary

This calculator runs a local estimate from the inputs and formula shown on this page. It does not retrieve live rules, rates, underwriting decisions, or quotes from banks, tax authorities, insurers, or other providers. Last reviewed: July 24, 2026.

For tax, lending, insurance, retirement, investment, or contract decisions, verify official guidance, the relevant agreement, and a formal quote for your location. Use this result to compare scenarios and prepare questions, not as financial, tax, investment, or legal advice.

Notes

• Amounts are displayed in the selected currency.
• Enter 35 for a 35% percentage field.
• Tax, insurance, lending, and retirement outputs do not replace official rules, contracts, quotes, or professional advice.

FAQ