Dicno LabsFree mortgage tool
Estimate private mortgage insurance, down payment percentage, loan amount, and whether PMI may be required.
Private mortgage insurance
A PMI calculator helps home buyers estimate private mortgage insurance when the down payment is below 20%. PMI can be easy to miss because it is not part of principal or interest, but it can still affect the total monthly housing payment and affordability.
This tool estimates the loan amount, down payment percentage, monthly PMI, annual PMI, and whether PMI is likely required based on a 20% down payment threshold. It is designed for quick planning before you compare full mortgage payment scenarios.
For a broader view, use the PITI Calculator, Mortgage Calculator, and Affordability Calculator.
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The estimate updates instantly in your browser as you adjust the inputs.
PMI is usually required when the down payment is below 20%, but lender and loan program rules can vary.
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How it works
Private mortgage insurance is commonly associated with conventional mortgages where the borrower puts less than 20% down. The lender may require PMI because a smaller down payment means less borrower equity at the start of the loan.
This calculator first subtracts the down payment from the home price to estimate the loan amount. It then divides the down payment by the home price to show the down payment percentage. If that percentage is below 20%, the tool marks PMI as likely required.
The PMI estimate uses a simple annual rate. For example, if the loan amount is $360,000 and the estimated PMI rate is 0.75%, annual PMI would be about $2,700. Dividing by 12 gives an estimated monthly PMI of $225. That monthly amount can then be added to a PITI or full mortgage payment estimate.
PMI rates vary based on credit, loan-to-value ratio, loan type, lender, and other factors. A lender quote is the best source for a real number. Still, a planning estimate can help you compare whether increasing your down payment, choosing a different price range, or using a different loan program might change the monthly payment.
For a $400,000 home with $40,000 down, the down payment is 10% and the estimated loan amount is $360,000. At a 0.75% annual PMI rate, the estimated annual PMI is $2,700 and the estimated monthly PMI is $225.
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PMI stands for private mortgage insurance. It is a type of insurance that may protect the lender when a borrower makes a smaller down payment.
PMI is usually required on conventional loans when the down payment is below 20% of the home price.
This calculator multiplies the loan amount by the estimated annual PMI rate, then divides that amount by 12.
PMI is commonly estimated from the loan amount, not the full home price.
PMI may be removed when enough equity is reached, but rules vary by lender, loan type, and payment history.
No. FHA loans use mortgage insurance rules that differ from conventional PMI, including upfront and annual premiums.
Use a rate from a lender estimate when available. If you do not have one, a rough range may be around 0.3% to 1.5% annually depending on borrower and loan factors.
For many conventional loans, 20% down may avoid PMI, but loan program rules and lender requirements can vary.
PMI is often considered alongside principal, interest, taxes, and insurance when estimating total monthly housing cost.
No. It is an educational estimate and does not replace a lender disclosure or official loan estimate.
HomeLoan Compass
Download HomeLoan Compass on Google Play for more complete mortgage planning tools, including affordability planning, loan comparison, amortization schedules, and future premium tools.