PMI Calculator

PMI stands for Private Mortgage Insurance, if you were to put down less than 20% of the money you will have to pay this. This will be added onto your monthly payments for the mortgage itself.

To work it out, input the loan amount you have to take, the interest rate that you will be paying and the how long you it will take you before you are taken off the loan and have repaid the money back to the company. Once you have filled in all of this information click ‘Calculate PMI’ and it will instantly calculate how much your PMI will cost, and how much it will cost you altogether once you have finished paying for the PMI.

To calculate the ‘Principal and Interest’ you have to use the following formula:

I * A * Y

I stands for the interest you will be paying for this PMI, A stands for the amount of the loan you will be taking out and Y stands for the number of years you will have this loan/PMI. This formula is pretty simple and easy to remember, you multiply the three figures together in any order you wish and it will work out the ‘Principal and Interest’.

To calculate the estimated PMI we use another formula, PI / (Y * 12)

PI stands for the formula we used above (the ‘Principal and Interest’) and Y stands for years again. To work out the estimated PMI we get the total figure of how much you will be paying and then divide that number by the number of months you will be paying the money for.

This gives you an estimated amount you will be paying back, and your PMI may be subject to change. This means you may need to come back here and check if any of the rates change.

This calculator is a good way to keep track of your finances and can help you work out how much you should be paying so you can keep a good figure if something was to change in the future which you may disagree with.