PMI calculator
PMI Calculator
Estimate private mortgage insurance cost when equity or down payment is below 20%, and see the additional equity needed to reach a 20% target.
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PMI planning guide
PMI is often required when the borrower has less than 20% equity. It protects the lender, not the borrower, and increases monthly housing cost.
Worked example
A $420,000 purchase with $40,000 down has less than 20% equity. A 0.5% annual PMI assumption estimates the monthly and annual PMI cost.
Methodology
Estimated PMI equals loan amount times annual PMI rate divided by 12. The 20% equity target equals home value times 20%.
Sources and review
Last reviewed: August 16, 2026.
Frequently asked questions
Is this professional mortgage advice?
No. DailyToolDesk provides educational estimates, not lending, tax, legal or investment advice.
Why can lender numbers differ?
APR, points, escrow rules, insurance quotes, property tax, PMI, lender fees and closing timing can change actual results.
Which tool should I use next?
Use the related calculator that matches the next decision: amortization for schedules, extra payment for payoff acceleration, PMI for insurance cost, or rent vs buy for housing path comparison.