PMI Calculator
Estimate the private mortgage insurance you will pay when your down payment is under 20%. Enter the home price, down payment, and either a PMI rate or your credit score to see the monthly cost, your loan-to-value ratio, when PMI cancels, and the total PMI you will pay before it drops off.
Formula
Worked example
A $350,000 home with $35,000 down leaves a $315,000 loan at 90% LTV. At a 0.5% PMI rate: 315,000 x 0.005 = $1,575 per year, or $1,575 / 12 = $131.25 per month. Amortized at 6.5% over 30 years, the balance reaches 78% of value (about $273,000) after roughly 5 years, so total PMI paid is near $7,900.
How private mortgage insurance is calculated
PMI protects the lender, not you, when your down payment is below 20% of the home price. The annual premium is the loan amount multiplied by the PMI rate, which lenders typically set between 0.3% and 1.5% depending on your credit score and loan-to-value ratio. Dividing that annual figure by twelve gives the amount added to each monthly mortgage payment. This calculator can estimate the rate from your credit band or use a rate you enter directly, and a larger down payment shrinks both the loan and the premium.
When PMI can be removed and what it costs in total
Under the federal Homeowners Protection Act, you can request that your lender cancel PMI once your loan balance reaches 80% of the original home value, and the servicer must cancel it automatically when the balance hits 78%. By adding your mortgage interest rate and term, this calculator amortizes the loan to find roughly when those thresholds arrive, how many years of PMI that means, and the total PMI you will pay before it drops off. Cancellation can also come sooner if your home appreciates and a new appraisal confirms enough equity, so removing PMI as early as the rules allow can save thousands over the life of the loan.
Reading the breakdown and total payment
The monthly payment with PMI combines principal, interest, and the PMI premium so you can see the full housing cost while insurance is in force. The year-by-year schedule shows the loan balance falling, the LTV dropping toward the 78% line, and the PMI charged each year, with a running total. These are planning estimates: actual PMI rates depend on the insurer, your credit profile, the loan type, and the number of borrowers, so confirm the exact figures with your lender before relying on them.
Typical annual PMI rates by loan-to-value
| Down payment | Loan-to-value | Typical PMI rate | Cost level |
|---|---|---|---|
| 15% | 85% | 0.3% to 0.6% | Low |
| 10% | 90% | 0.4% to 0.9% | Moderate |
| 5% | 95% | 0.6% to 1.2% | High |
| 3% | 97% | 0.8% to 1.5% | High |
Indicative ranges; actual rates vary by credit score, loan type, and insurer.
Frequently asked questions
How is monthly PMI calculated?
Multiply your loan amount by the annual PMI rate, then divide by 12. For a $315,000 loan at a 0.5% rate, that is 315,000 x 0.005 = $1,575 per year, or $131.25 per month.
When does PMI go away?
You can request cancellation once your balance reaches 80% of the original home value, and your lender must remove it automatically at 78%. Enter your interest rate and term and the calculator estimates how many years that takes from your scheduled payments.
How does my credit score affect PMI?
Higher credit scores earn lower PMI rates. A borrower with a 760-plus score might pay near 0.3% to 0.6% of the loan per year, while a score in the 620 to 659 range can pay 0.85% to 1.5%. Select your credit band to estimate a rate, or enter the exact rate your lender quoted.
How much PMI will I pay in total?
It depends on how fast you build equity. The calculator amortizes your loan and adds up the PMI charged each month until the balance reaches 78% of the original value, where PMI auto-cancels, then reports that total. Paying extra principal cancels PMI sooner and lowers the total.