Finance tools
PMI calculator
Use this free PMI calculator —also called a private mortgage insurance calculator or mortgage insurance calculator for conventional loans—to estimate monthly PMI, total PMI until cancellation, and loan-to-value (LTV) when your down payment is below 20%. Enter home price, down payment, rate, and term; pick a credit score band for an illustrative PMI rate or override it in Advanced. Results update as you type. Export to CSV or PDF; no sign-up. This is a PMI-only tool—not a rate marketplace or full PITI calculator with taxes and homeowners insurance. It does not model FHA MIP. For broader buy vs rent math, try our rent vs buy calculator. Educational only—not a loan quote.
What is private mortgage insurance (PMI)?
Private mortgage insurance (PMI) protects the lender if you stop paying a conventional mortgage. You pay the premium, but the coverage benefits the lender. PMI is not the same as homeowners insurance (hazard coverage on the property) or FHA mortgage insurance (MIP) on government-backed loans.
Borrower-paid PMI (BPMI) is the common monthly line item this calculator models. Lender-paid PMI (LPMI) is built into your interest rate instead of a separate monthly charge—this tool does not model LPMI.
For consumer guidance on what PMI is, see the CFPB overview of PMI.
When is PMI required?
On many conventional purchase loans, PMI is required when your down payment is less than 20% of the home price. At closing, that usually means loan-to-value (LTV) above 80%—for example, 10% down on a $400,000 home is a $360,000 loan and 90% LTV.
Putting 20% down or more on a new conventional loan typically avoids PMI. Some programs (such as certain physician or portfolio loans) may waive PMI with less than 20% down—those are lender-specific and not modeled here.
PMI requirements can also differ for refinances and second homes. Use your Loan Estimate or Closing Disclosure for the premium your lender actually charges. To model refi payment and break-even separately, see our mortgage refinance calculator.
Quick LTV check
LTV % = loan amount ÷ home price × 100
5% down → 95% LTV · 10% down → 90% LTV · 15% down → 85% LTV · 20% down → 80% LTV (PMI usually not required on a standard conventional purchase).
How to use this PMI calculator
Enter your numbers on the left (or top on mobile). The calculator shows monthly PMI, total PMI until the modeled cancellation point, months with PMI, and P&I + PMI—there is no submit button.
Enter home price and down payment
Type the purchase price and down payment in dollars, adjust down payment %, or tap a preset (3%, 5%, 10%, 15%, or 20% down).
Set loan term, rate, and credit band
Choose 15 or 30 years, enter your estimated fixed mortgage rate for principal and interest, and pick a credit score range for an illustrative annual PMI rate.
Read PMI totals and cancellation timing
Review monthly PMI, total PMI, and how many months PMI may last before you reach about 80% of the original home value. Note the 78% automatic milestone in the results, then export CSV or PDF if you need a summary.
Down payment presets
Quickly compare 3%–20% down without retyping—see how LTV and monthly PMI change.
Credit score bands
Map FICO-style ranges to illustrative PMI rates, or enter your lender’s annual PMI % in Advanced.
Cancellation milestones
See when PMI may end near 80% of the original value (you can request removal) and the 78% automatic termination summary. Educational summary only—not legal advice.
CSV/PDF export
Download inputs and headline PMI results for budgeting or lender conversations—no account required.
Related tools: amortization schedule calculator (payment-by-payment P&I), rent vs buy calculator (housing tradeoffs), real estate appreciation calculator (equity growth), and auto loan calculator (installment loans).
What we assume
- Level PMI on the original loan amount each month until cancellation
- Fixed-rate loan with standard monthly P&I amortization
- Cancellation timing on the original home value (not a future appraised value)
- No property tax, homeowners insurance, HOA, FHA MIP, or ARM rate changes
How PMI is calculated
A common estimate for level PMI on a conventional loan:
Monthly PMI ≈ (annual PMI rate % × original loan amount) ÷ 12
Your actual premium depends on credit score, loan size, down payment, and insurer pricing. Pick a credit band in the calculator for an illustrative annual rate, or enter your own % in Advanced.
Worked example ($400,000 home, 10% down)
Home price $400,000, down payment $40,000 → loan $360,000 (90% LTV). At 0.79% annual PMI (illustrative 700–719 band):
Monthly PMI ≈ 360,000 × 0.0079 ÷ 12 ≈ $237Principal and interest depend on your rate and term—the calculator adds P&I from the same inputs. Total PMI is this monthly amount times the months until the balance hits the modeled cancellation threshold.
How long you pay PMI—and when it can end
You keep paying PMI until your loan hits cancellation rules—not for a fixed number of years. With level PMI, the monthly premium usually stays the same; what changes is how many payments you make before your balance reaches the threshold on the home’s original value (not necessarily what the home is worth today).
On many conventional loans you can ask to cancel PMI near 80% LTV on the original value when you are current and qualify. Under the Homeowners Protection Act, PMI on many eligible loans must stop automatically around 78% LTV on the original value when payments are current.
The calculator estimates months until the 80% milestone on your amortization schedule. It does not model extra principal payments, reappraisals, or market appreciation unless you explore those scenarios separately.
80% vs 78% on the original value
- ~80% LTV — you may request PMI removal if you are current and qualify under your loan terms.
- ~78% LTV — on many eligible loans, PMI must end automatically if payments are current (HPA baseline).
Servicer and investor rules still apply. See the CFPB on terminating PMI and confirm with your loan servicer.
Ways borrowers often remove PMI sooner
- Pay extra toward principal to reach 80% faster
- Request cancellation at 80% LTV on the original value when eligible
- Refinance once you have enough equity (new appraisal and closing costs apply)
- Ask whether a new appraisal based on current value is allowed (not modeled in this calculator)
PMI vs putting 20% down
On a $400,000 home, 20% down is $80,000 at closing; 10% down is $40,000. The smaller down payment often adds on the order of $175–$240/month in PMI (credit and rate dependent) for a period of years, but leaves more cash for reserves, moving costs, or repairs.
Neither choice is always better. If you move or refinance soon, total PMI may stay relatively small. If you keep the loan for many years, a larger down payment can avoid those premiums entirely. Use total PMI paid and months with PMI here, then weigh that against the extra cash you would need at closing.
For rent vs buy and other housing costs, see our rent vs buy calculator.
PMI vs FHA mortgage insurance (MIP)
PMI is tied to conventional loans sold to investors with private mortgage insurers. Premiums depend heavily on credit and down payment, and PMI can often be canceled once you have enough equity under HPA and servicer rules.
FHA mortgage insurance (MIP) is required on most FHA loans regardless of down payment size, includes an upfront premium (often financed) plus annual premiums, and follows FHA duration rules that differ from conventional PMI. FHA loans can help buyers with lower credit or smaller down payments, but the insurance cost structure is not the same.
This calculator estimates conventional PMI only. Compare Loan Estimates side by side if you are choosing between FHA and conventional financing.
At a glance: PMI vs FHA MIP
- PMI (conventional) — usually with <20% down; private insurer; cancellable on many loans; modeled here.
- FHA MIP — government program; upfront + annual premiums; different removal rules; not calculated on this page.
- VA / USDA — separate guarantee or funding-fee programs; also out of scope.
Illustrative PMI rates by credit score
Insurers price PMI from credit score, loan size, and down payment (LTV). All else equal, 5% down usually costs more than 10% down because the lender has less equity cushion.
The bands below are illustrative annual PMI rates (% of the original loan per year). They are not a quote from your lender or insurer:
- 760+ — about 0.46%
- 740–759 — about 0.58%
- 720–739 — about 0.70%
- 700–719 — about 0.79%
- 680–699 — about 0.98%
- 660–679 — about 1.23%
- 640–659 — about 1.31%
- 620–639 — about 1.50%
On a $360,000 loan, that range is roughly $138–$450 per month in PMI before cancellation—use the bands above the calculator to see your scenario.
If your lender quotes a rate in basis points, remember that 100 bps = 1.00% per year on the loan amount. See our basis points calculator for quick conversions.
Limitations and disclaimer
This PMI calculator models level conventional PMI on a fixed-rate loan using your original home value for cancellation timing. It does not include property taxes, homeowners insurance, HOA, FHA MIP, lender-paid PMI (LPMI), declining-balance insurer pricing, ARM rate changes, or state-specific rules.
Outputs include monthly PMI, total PMI until the modeled cancellation point, months with PMI, LTV at closing, principal and interest, and P&I + PMI (not full PITI).
Results are for education and planning—not a loan commitment. Confirm premiums and removal steps with your servicer. For payment-by-payment principal and interest, use our amortization schedule calculator; for how home value growth affects equity, try the real estate appreciation calculator.
Not a substitute for lender disclosures
Your Loan Estimate and Closing Disclosure list the PMI premium and how long it may last. Use those documents for binding numbers; use this tool to explore down payment and credit scenarios before you apply.
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Frequently asked questions about this PMI calculator
How much is private mortgage insurance on a $400,000 house?
With 10% down ($40,000), the loan is $360,000. At a 0.58% annual PMI rate, monthly PMI is about $174; at 0.79% (illustrative 700–719 credit band), about $237. Adjust down payment and credit band in the calculator for your numbers.
What is the average monthly cost of PMI?
On many conventional loans, illustrative PMI is about 0.46%–1.50% of the loan amount per year, depending on credit and down payment. On a $300,000 loan, that works out to roughly $115–$375 per month before PMI ends. Your Loan Estimate lists the premium your lender expects you to pay.
How do you calculate PMI on a monthly basis?
For many conventional loans with level PMI, split the annual premium into 12 monthly payments based on the original loan amount:
Monthly PMI = (annual PMI rate % ÷ 100) × loan amount ÷ 12. Example: a $360,000 loan at 0.79% annual PMI ≈ $237/month until cancellation.
How much is PMI monthly on a $300,000 mortgage?
If the loan balance is $300,000 and the annual PMI rate is 1%, monthly PMI is about $250 until PMI ends. If you are buying with a down payment, your loan may be smaller than the home price—enter both above for an accurate loan amount.
When is PMI required on a conventional loan?
PMI is usually required when you put less than 20% down, so your LTV at closing is above 80%.
With 20% down or more on a typical conventional purchase, PMI often is not required. FHA, VA, and USDA loans use different insurance or guarantee fees—not conventional PMI.
When does PMI drop off on a conventional mortgage?
PMI often can be removed when your balance reaches about 80% of the home’s original value (you may request cancellation) or ends automatically near 78% on eligible loans when payments are current. The exact month depends on your rate, term, and paydown—the calculator estimates timing from your inputs.
How can I remove PMI from my mortgage?
Common paths: pay down the loan and request cancellation near 80% LTV on the original value, wait for automatic termination near 78% on eligible loans, refinance once you have enough equity, or ask your servicer whether a new appraisal qualifies you sooner. Investor and servicer rules apply.
To compare payment and break-even on a refi with closing costs, use our mortgage refinance calculator—this PMI tool does not model refi fees or new loan terms.
Is it better to pay PMI or put 20% down?
It depends on your cash on hand, how long you will keep the loan, and your other goals. PMI lets you buy with less upfront cash; 20% down avoids the monthly premium. Compare total PMI and months with PMI in this calculator, then weigh that against tying up more money at closing. Our rent vs buy calculator can help with wider housing tradeoffs.
What is loan-to-value (LTV) and why does it matter for PMI?
LTV is loan amount ÷ home price. A $360,000 loan on a $400,000 home is 90% LTV. Lenders often require PMI when LTV is above 80% at closing on a conventional loan.
How does credit score affect PMI rates?
Lower credit scores generally mean higher PMI rates on the same loan size and down payment. In this calculator, moving from a high band to a low band can change the illustrative annual rate by about one percentage point or more—often tens of dollars per month. Your insurer sets the actual quote.
What PMI rate should I enter in the calculator?
Use the annual PMI % from your Loan Estimate if you have one. If not, pick a credit score band for an illustrative rate, or type a custom annual PMI % in Advanced. Many conventional quotes fall between about 0.5% and 1.5% of the loan per year before cancellation.
Does PMI go down each month as I pay the loan?
With typical level PMI, the monthly premium stays flat until PMI ends—it is based on the original loan amount, not the shrinking balance.
You stop paying when you hit cancellation rules (such as 80% or 78% of the original value), not because the PMI formula decreases each month.
What do I need to estimate PMI with this calculator?
Enter home price, down payment (dollars or %), loan term, interest rate, and either a credit score band or a custom annual PMI rate.
The calculator computes monthly PMI, total PMI until the modeled cancellation point, months with PMI, LTV at closing, and principal and interest for context.
Does this mortgage insurance calculator include taxes and homeowners insurance?
No. This is a conventional PMI calculator—results cover principal, interest, and PMI only. Property taxes, homeowners insurance, and HOA are not included. For a broader monthly housing picture, use our rent vs buy calculator.
Is PMI the same as FHA mortgage insurance (MIP)?
No. PMI applies to many conventional loans with private insurers. FHA MIP is a separate government program with upfront and annual premiums and different cancellation rules. This page estimates conventional PMI only—not FHA, VA, or USDA fees.
Can I see an amortization schedule that includes PMI?
This tool summarizes PMI totals and how long PMI may last. For a full principal-and-interest payment schedule, use our amortization schedule calculator (PMI is not broken out line-by-line there today).
Can I export my PMI calculation results?
Yes. After you enter your scenario, use CSV or PDF export under the results to download inputs and headline PMI figures—no account required.
Is private mortgage insurance (PMI) tax deductible?
Federal rules for deducting PMI have changed from year to year. When allowed, PMI may be treated similarly to mortgage interest for some taxpayers, often with income limits. This calculator does not estimate taxes—refer to current IRS guidance or a tax professional for your situation.