How do I find a realistic PMI rate to enter?

Ask your lender or broker for PMI rate quotes based on your credit score, down payment, and loan type. You can then plug those into this calculator to see the monthly impact.

Will PMI ever go away on this loan?

Most conventional loans allow PMI to be removed when your LTV drops to around 78–80% and you meet other conditions. This calculator does not model removal timing, but you can use it alongside a PMI drop‑date tool to understand how long PMI might last.

Does this calculator include taxes and insurance?

No. It focuses on principal, interest, and PMI only. For a full housing payment picture, combine these results with property tax, homeowners insurance, and HOA estimates.

Is lender-paid PMI covered here?

Not directly. Lender‑paid PMI is effectively built into a higher interest rate rather than a separate monthly line item. To compare, you can model a higher APR without PMI and compare the total payment to the PMI‑inclusive scenario.

Should I avoid PMI at all costs?

Not necessarily. PMI is an added cost, but it may allow you to buy sooner in a rising price environment. Use this tool to quantify the cost, then weigh it against your savings timeline and housing goals with a financial professional.

finance calculator

Mortgage Payment with PMI

Estimate monthly principal & interest plus PMI if your down payment is below 20%, and see the full payment including PMI.

Results

Loan amount: $360,000
Principal & interest: $2,275
PMI (monthly): $150
Total monthly (P&I + PMI): $2,425

How to use this calculator

Enter the home price you’re considering and your planned down payment percentage.
Enter the interest rate (APR) and loan term in years (for example, 30 or 15).
Enter the annual PMI rate as a percentage of the loan balance (for example, 0.5% or 0.8%), based on quotes or typical ranges.
We calculate the loan amount, monthly principal and interest, estimated monthly PMI, and the combined payment.
Review the results to see the incremental cost of PMI and how different down payment percentages or PMI rates change your total monthly payment.

Inputs explained

Home price: The purchase price of the home. This, combined with your down payment percentage, determines your initial loan amount and loan‑to‑value ratio (LTV).
Down payment (%): The percentage of the home price you plan to pay upfront. If this is below 20%, PMI is typically required on conventional loans, and we include PMI in the estimate.
Interest rate (APR %): The annual percentage rate on your mortgage. This is used to compute the monthly principal and interest payment over the chosen term.
Loan term (years): The length of the mortgage in years (for example, 15, 20, or 30). Longer terms lower the monthly principal and interest payment but increase total interest over the life of the loan.
PMI rate (annual % of loan): The annual PMI premium expressed as a percentage of your loan balance. Rates vary by lender, credit score, LTV, and loan type; use a figure from your quote or a typical range.

How it works

We start by computing your loan amount as home price minus down payment based on the down payment percentage you enter.

Using that loan amount, the interest rate, and the term in years, we calculate your monthly principal and interest payment with the standard fixed‑rate mortgage formula.

For PMI, we apply your annual PMI rate (expressed as a percent of the current loan balance) and divide by 12 to estimate a monthly PMI charge when your down payment is below 20%.

We then add the PMI amount to your principal and interest payment to get a combined monthly payment that reflects both loan amortization and PMI.

This gives you a quick view of how much more you’re paying each month because of PMI compared with principal and interest alone.

Formula

Loan amount = Home price × (1 − Down payment% ÷ 100)\nMonthly rate r = APR ÷ 12 ÷ 100\nPayments n = Term years × 12\nPrincipal & interest payment = Loan amount × [r(1 + r)^n] ÷ [(1 + r)^n − 1]\nMonthly PMI ≈ (Loan amount × PMI rate% ÷ 100) ÷ 12 (if down payment% < 20)\nTotal monthly ≈ Principal & interest + Monthly PMI

When to use it

Estimating how much PMI increases your monthly payment when you’re putting less than 20% down on a home purchase.
Comparing total payments for different down payment percentages (for example, 5%, 10%, 15%) to weigh saving longer vs buying sooner with PMI.
Checking whether a slightly higher down payment or a better PMI rate meaningfully reduces your monthly cost.
Helping first‑time buyers understand how PMI fits into their overall mortgage payment and when it might make sense despite the added cost.

Tips & cautions

PMI rates can vary significantly based on credit score, loan type, and LTV—ask your lender for specific quotes and plug those into the calculator.
If you are close to 20% down, test a scenario with a slightly higher down payment to see if you can eliminate PMI entirely and how much that saves monthly.
Remember that PMI is typically removable once your loan‑to‑value ratio reaches around 78–80% under certain conditions; this calculator shows a snapshot payment, not long‑term PMI removal timing.
Use this tool alongside a full PITI calculator (principal, interest, taxes, insurance, HOA) to see how PMI fits into your total housing payment.
Ignores PMI removal timing; it assumes PMI applies at the entered rate without modeling future LTV changes or automatic cancellation rules.
Uses a flat PMI rate; in reality, PMI can adjust over time or be structured differently (for example, single‑premium or lender‑paid PMI).
Does not include property taxes, homeowners insurance, or HOA fees; it focuses on principal, interest, and PMI only.
Assumes a standard fixed‑rate mortgage with regular payments and no extra principal payments or refinances.

Worked examples

10% down with 0.5% PMI rate

Home price = $400,000; Down payment = 10%; APR = 6.5%; Term = 30 years; PMI rate = 0.5%.
Loan amount = 400,000 × (1 − 0.10) = $360,000.
Compute monthly principal & interest using the standard amortization formula for a 30‑year loan at 6.5%.
Monthly PMI ≈ (360,000 × 0.005) ÷ 12 = $150.
Total monthly payment ≈ Principal & interest + $150 of PMI.

Comparing 5% vs 15% down

Run the calculator once with a 5% down payment and your estimated PMI rate.
Run it again with a 15% down payment and adjusted PMI rate (typically lower, but still above 0 if LTV > 80%).
Compare the resulting total monthly payments to see how increasing down payment reduces PMI and principal/interest together.

Testing impact of PMI rate changes

Keep home price, down payment %, rate, and term fixed.
Try different PMI rates (for example, 0.3%, 0.6%, 1.0%) based on lender quotes.
Interpretation: the calculator shows how sensitive your monthly payment is to PMI rate changes, helping you evaluate lender offers.

Deep dive

Estimate your mortgage payment with PMI by entering home price, down payment percentage, interest rate, term, and PMI rate.

See loan amount, principal and interest, PMI, and total monthly payment so you can understand the cost of buying with less than 20% down.

Ideal for first‑time homebuyers and planners comparing buy‑now with PMI versus saving longer for a larger down payment.

FAQs

How do I find a realistic PMI rate to enter?: Ask your lender or broker for PMI rate quotes based on your credit score, down payment, and loan type. You can then plug those into this calculator to see the monthly impact.
Will PMI ever go away on this loan?: Most conventional loans allow PMI to be removed when your LTV drops to around 78–80% and you meet other conditions. This calculator does not model removal timing, but you can use it alongside a PMI drop‑date tool to understand how long PMI might last.
Does this calculator include taxes and insurance?: No. It focuses on principal, interest, and PMI only. For a full housing payment picture, combine these results with property tax, homeowners insurance, and HOA estimates.
Is lender-paid PMI covered here?: Not directly. Lender‑paid PMI is effectively built into a higher interest rate rather than a separate monthly line item. To compare, you can model a higher APR without PMI and compare the total payment to the PMI‑inclusive scenario.
Should I avoid PMI at all costs?: Not necessarily. PMI is an added cost, but it may allow you to buy sooner in a rising price environment. Use this tool to quantify the cost, then weigh it against your savings timeline and housing goals with a financial professional.

Related calculators

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PMI Cost Calculator

Estimate your monthly PMI, how long you’ll pay it, and total PMI cost until it drops based on LTV and amortization.

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PMI Drop Date Calculator

Estimate when your mortgage balance will hit the PMI cancellation LTV threshold and the calendar date that may happen.

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PITI Mortgage Payment Calculator

Estimate principal & interest plus property tax, insurance, and HOA to see your total monthly PITI payment.

This mortgage with PMI calculator provides simplified estimates of principal, interest, and PMI based on user-entered assumptions. It does not model PMI removal rules, taxes, insurance, HOA, or all lender-specific requirements and is not a loan offer or financial advice. Always review actual loan disclosures and consult with your lender or a qualified financial professional before making mortgage decisions.