Use this free mortgage calculator online to estimate your monthly principal, interest, and private mortgage insurance (PMI) costs. Enter your home price, down payment, interest rate, loan term, and estimated annual PMI rate to see how mortgage insurance can affect your monthly payment.
How to Use the Mortgage Calculator With PMI
Enter the property’s purchase price and your planned down payment. Add your annual mortgage interest rate, loan term in years, and estimated annual PMI rate. Select Calculate Mortgage to see your estimated monthly payment, PMI cost, and down payment percentage.
Try different down payment amounts and PMI rates to compare scenarios and understand how mortgage insurance may affect your monthly budget.
What Is Private Mortgage Insurance (PMI)?
Private mortgage insurance is commonly required on conventional US mortgages when the down payment is less than 20% of the home’s purchase price. PMI protects the lender against certain losses if the borrower defaults; it does not protect the homeowner’s equity.
The cost varies depending on factors such as your loan-to-value ratio, credit profile, loan amount, and mortgage terms. The calculator uses the annual PMI rate you enter to estimate the monthly cost, so your result may differ from an actual lender or insurer quote.
Understanding Your Monthly Payment Breakdown
- Principal and interest: The estimated monthly payment toward repaying the mortgage and its interest.
- PMI cost: The estimated monthly mortgage insurance premium based on your loan amount and entered annual PMI rate.
- Down payment: The amount paid upfront, shown as a percentage of the home price.
- Monthly mortgage with PMI: The estimated combined principal, interest, and PMI payment.
These figures help you compare borrowing scenarios, but they do not represent your complete housing costs.
How Your Down Payment Affects PMI
A larger down payment generally reduces the mortgage amount and loan-to-value ratio. For many conventional mortgages, reaching a 20% down payment can help avoid borrower-paid PMI, although specific requirements depend on the loan program and lender.
If your down payment is below 20%, compare the estimated cost of PMI with the benefits of buying sooner rather than waiting to save a larger deposit. Also consider closing costs, property taxes, homeowners insurance, maintenance, and emergency savings when planning your budget.
For further planning, use our Mortgage Calculator to estimate regular mortgage payments or our Down Payment Calculator to compare upfront payment options.
Important: This calculator provides estimates for planning purposes, not a mortgage offer or personalised financial advice. It assumes a fixed interest rate and calculates PMI using the full initial loan amount and the annual rate you enter. It does not model PMI cancellation as your equity increases, and actual premiums and cancellation rules vary. The displayed amounts are in US dollars; use consistent currency values for all inputs.
Frequently Asked Questions
Disclaimer: This calculator provides estimates for informational and educational purposes only, not financial, tax, legal, or professional advice. Results are based on the information entered and may differ from actual costs, payments, rates, fees, or eligibility. Verify details with the relevant lender, financial professional, or official source before making financial decisions.
About Us
We’re MortgageRatesChecker, a financial education and tools platform helping consumers make smarter decisions about borrowing, budgeting, saving, and everyday spending. We provide practical guides, calculators, and resources covering mortgages, loans, home buying, refinancing, personal finance, money management, and budget-conscious travel. Explore our guides, calculators, and resources to make more informed financial decisions.
Disclaimer
MortgageRatesChecker provides educational mortgage calculators, loan tools, and financial guides designed to help you better understand home financing. Our content is researched, fact-checked, and regularly updated in accordance with our Editorial Policy, using trusted information from our Data Sources and transparent methodologies explained in How We Calculate. Learn more about our commitment to accuracy on Why Trust Us. This content is provided for informational purposes only and should not be considered financial, legal, tax, investment, or mortgage advice. Mortgage rates, lending requirements, loan programs, and regulations may change without notice. Before making any borrowing, refinancing, or home-buying decision, consult your Bank or Mortgage Lender, licensed financial advisor, tax professional, or attorney based on your individual circumstances. MortgageRatesChecker is an independent educational resource and is not a lender, mortgage broker, financial advisor, or government agency. Please review our Affiliate Disclosure, Advertiser Disclosure, Disclaimer, and Terms & Conditions for additional information.
