PMI Calculator
Calculate your mortgage insurance costs, understand removal timelines, and explore strategies to eliminate PMI faster.
Home Purchase Details
Loan Information
Estimated annual home value increase
Additional principal payment
PMI Analysis
Monthly PMI
0.38% annual rate
Annual PMI Cost
4.5% of payment
Total PMI Cost
Over 3.2 years
LTV Analysis
Monthly Payment Breakdown
With 20% Down
How it works
Private Mortgage Insurance protects the lender when you put down less than 20% on a conventional loan. It's an annual percentage of the loan, charged monthly, and it drops off once you reach 20–22% equity. The calculator estimates that monthly cost.
Monthly PMI
Monthly PMI = (loan amount × PMI rate) ÷ 12
- loan amount
- mortgage balance
- PMI rate
- annual rate, ~0.3–1.5% by credit and down payment
Worked example
- Loan = $300,000
- PMI rate = 0.6%
- Annual PMI = 300,000 × 0.006 = $1,800
- Monthly = 1,800 ÷ 12
≈ $150/month in PMI.
Good to know
- PMI ends automatically at 78% loan-to-value, and you can request removal at 80%.
- A bigger down payment or a stronger credit score lowers the rate or avoids PMI entirely.
- FHA loans charge MIP instead, which often lasts the life of the loan.
Related Calculators
Frequently Asked Questions
What is PMI and when is it required?
Private mortgage insurance protects the lender if you default, and it's required on conventional loans when your down payment is under 20%. You pay the premium, usually as part of your monthly mortgage payment.
How much does PMI cost?
Typically 0.3% to 1.5% of the loan amount per year, depending on your credit score, down payment, and loan type. On a $300,000 loan that's roughly $75 to $375 per month.
How do I get rid of PMI?
You can request cancellation once your balance reaches 80% of the home's original value, and lenders must terminate it automatically at 78% if you're current on payments. Appreciation plus a new appraisal, or refinancing, can get you there sooner.
Is FHA mortgage insurance the same as PMI?
No. FHA loans charge an upfront premium of 1.75% plus an annual MIP, and with less than 10% down the annual MIP lasts for the life of the loan — you'd need to refinance into a conventional loan to drop it.
Is it worth paying PMI instead of waiting to save 20%?
Often yes. If home prices and rents are rising faster than you can save, buying sooner with PMI can cost less overall than waiting years for a 20% down payment — run both scenarios to compare.