LoanMath

Loan Calculator with PMI

Add mortgage insurance to the monthly payment.

PMI estimates computed in your browser — nothing is transmitted
Loan details
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Your payment breakdown appears here

Fill in the loan details and press Calculate — the monthly payment, total interest and schedule will render right on this page, with nothing sent to any server.

How to use

Buying a home with less than 20% down usually triggers private mortgage insurance (PMI) — an extra monthly cost on top of the principal-and-interest payment. This calculator shows the full monthly picture when PMI applies.

How to use

  1. Enter the home price, your down payment percent, the APR and the loan term.
  2. Press Calculate to see the principal-and-interest payment, the PMI and the total monthly cost.

Example

A $300,000 home with 10% down ($30,000) at 6.5% for 30 years: the loan is $270,000, the P&I payment about $1,707, and PMI at roughly 0.5% a year adds about $113 a month — a total of $1,819. Putting 20% down removes the PMI and drops the total to about $1,517.

Formula

Loan = price × (1 − down%); payment from PMT; PMI ≈ 0.5% of loan per year when the down payment is under 20% — an industry-convention approximation, not an exact premium table. Your lender quotes the exact rate.

PMI is temporary

Once your equity passes 20-22%, you can usually cancel PMI — either through appreciation or refinancing. The extra cost is a bridge toll, not a permanent line item.

Compare down payment scenarios

Run the tool at 5%, 10% and 20% down. The 20% row drops PMI entirely but ties up the most cash; the calculator makes the monthly difference explicit so you can weigh it against your savings.

FHA and VA notes

This calculator models conventional-loan PMI. FHA loans carry a differently priced mortgage insurance premium, and VA loans have no monthly mortgage insurance at all — check which program applies to you before comparing monthly costs.

FAQ

How do I cancel PMI?

Once your equity hits 20-22%, request cancellation; lenders must drop it automatically at 22% on most conventional loans.

Is the PMI estimate exact?

No — it uses a common 0.5%-of-loan approximation. Your lender quotes the precise premium based on credit and loan type.

Is 20% down always best?

It avoids PMI and lowers the payment, but ties up cash. Compare the monthly difference against what that cash could do elsewhere.

Does this tool include taxes and insurance?

No — it covers principal, interest and PMI only. Escrow for property tax and homeowners insurance is separate.

Reviewed by the LoanMath editorial team

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