PMI Calculator
Find out exactly how much private mortgage insurance will add to your monthly payment. Enter your home price, down payment, credit score, and loan details to see your monthly PMI cost, your loan-to-value ratio, and the date your PMI automatically cancels.
PMI Calculator
Estimate monthly PMI cost, LTV ratio, and your PMI cancellation date
Enter your home price, down payment, and loan details to see your PMI estimate.
What Is PMI and How Is It Calculated?
Private mortgage insurance (PMI) is a monthly fee your lender charges when you buy a home with less than 20% down on a conventional loan. It protects the lender against financial loss if you default. The coverage does nothing for you as the borrower. PMI has nothing to do with your homeowners insurance or your ability to file a claim against the property. It is purely a risk premium your lender collects until you build enough equity to remove it.
PMI is calculated as a percentage of your original loan amount, billed monthly. The annual rate typically falls between 0.2% and 2.0%, depending on three factors: your loan-to-value ratio (LTV), your credit score, and your loan type. A simple way to estimate your monthly PMI cost:
Monthly PMI = (Loan Amount × Annual PMI Rate) ÷ 12
Example: A $360,000 loan with a 0.70% annual PMI rate produces $2,520 in annual PMI, or $210 per month added to your mortgage payment.
How to Use This PMI Calculator
Home Price
Enter the purchase price of the home you're buying. This is the starting point for calculating your loan amount and LTV ratio.
Down Payment
Enter your down payment in dollars or as a percentage of the home price using the toggle. The calculator shows your resulting LTV in real time as you type. A down payment below 20% triggers PMI on conventional loans. A down payment at or above 20% eliminates it entirely.
Interest Rate and Loan Term
Enter the interest rate from your lender's quote or pre-approval. These inputs determine your monthly principal and interest payment so the calculator can show your total monthly cost including PMI. As of June 2026, the 30-year fixed rate averages 6.47% (Freddie Mac PMMS, June 18, 2026).
Credit Score and PMI Rate
Select your credit score range. The calculator automatically estimates your PMI rate based on your score and LTV using a standard rate matrix. You can override the suggested rate with a figure from your lender's actual quote for a more precise estimate.
PMI Rates by Credit Score and LTV
Your PMI rate is primarily driven by two variables: how much equity you're starting with (LTV) and how creditworthy you are (credit score). The table below shows estimated annual PMI rates for a 30-year fixed conventional loan:
| Credit Score | LTV 85–90% | LTV 90–95% | LTV 95–97% |
|---|---|---|---|
| 760+ (Excellent) | ~0.31% | ~0.47% | ~0.67% |
| 720–759 (Very Good) | ~0.52% | ~0.73% | ~0.95% |
| 680–719 (Good) | ~0.78% | ~1.00% | ~1.20% |
| 640–679 (Fair) | ~1.05% | ~1.35% | ~1.55% |
| 620–639 (Minimum) | ~1.25% | ~1.60% | ~1.85% |
* Illustrative estimates for a single-family primary residence, 30-year fixed conventional loan. Actual rates vary by PMI insurer, lender, loan type, and state. 15-year loans typically carry lower PMI rates. ARM loans typically carry higher rates.
The practical takeaway: a borrower with a 760+ score and 10% down pays roughly one-third the PMI rate of a borrower with a 620 score and 5% down on the same loan. Raising your credit score before applying can save hundreds of dollars per month on PMI alone, on top of securing a better mortgage rate.
When Does PMI Cancel? The Homeowners Protection Act
PMI cancellation on conventional loans is governed by the Homeowners Protection Act of 1998 (HPA, 12 U.S.C. § 4902). This federal law gives you three distinct rights:
1. Request Cancellation at 80% LTV
Once your loan balance reaches 80% of the home's original purchase price (based on your original amortization schedule), you can formally request that your lender cancel PMI. Your lender may require written confirmation, proof that your payment history is current, and in some cases a new appraisal confirming the property value remains stable. Submit this request in writing to trigger the formal review process.
2. Automatic Cancellation at 78% LTV
Under the HPA, your lender is legally required to automatically cancel PMI when your loan balance reaches 78% of the original purchase price, based on your original amortization schedule. This happens automatically, with no action required from you. The lender must cancel PMI even if you forget to ask.
3. Final Cancellation at Loan Midpoint
When your loan balance still sits above 78% LTV at the midpoint of your loan term (year 15 on a 30-year mortgage), your lender must cancel PMI at that point regardless of LTV. This protects borrowers whose home values have declined.
PMI vs. MIP: Conventional Loans vs. FHA Loans
PMI and MIP are both forms of mortgage insurance, but they work very differently. Choosing the right loan type affects your total cost significantly.
| PMI (Conventional) | MIP (FHA) | |
|---|---|---|
| Who requires it? | Private lenders on conventional loans with under 20% down | FHA on all FHA loans regardless of down payment |
| Upfront cost? | None on most conventional loans | 1.75% of loan amount at closing (can be financed) |
| Annual rate? | 0.2%–2.0% based on credit score and LTV | 0.40%–0.75% depending on loan amount, LTV, term |
| When does it end? | Cancels at 80% LTV (request) or 78% LTV (automatic) | Lasts the life of the loan if down payment is under 10%; cancels at 11 years if down payment is 10% or more |
| Minimum credit score? | Usually 620+ | 500 with 10% down; 580 with 3.5% down |
| Best for? | Borrowers with good credit who plan to build equity | Borrowers with lower credit scores or limited savings |
For borrowers with credit scores above 680 and a down payment of at least 5%, conventional loans with PMI often cost less over time than FHA loans with MIP, because PMI cancels and FHA MIP frequently runs for the life of the loan.
How to Avoid PMI
PMI is an extra cost that benefits your lender, full stop. Here are the legitimate paths to skipping it or eliminating it faster:
Put 20% Down
The simplest path. A down payment at or above 20% of the purchase price puts your LTV at 80% or below from day one, and PMI never applies. On a $400,000 home, that is an $80,000 down payment. Down payment assistance programs, gift funds, and first-time buyer programs can help close the gap.
Piggyback Loan (80-10-10)
Take out a first mortgage for 80% of the home price, a second loan (HELOC or home equity loan) for 10%, and contribute 10% as your down payment. Because the first mortgage sits at 80% LTV, PMI never applies. You pay interest on two loans instead, which can be advantageous depending on the rates. Strong credit (typically 700+) is required to qualify for the second loan.
VA or USDA Loans
Eligible veterans, active-duty military, and surviving spouses can access VA loans with zero down payment and no PMI whatsoever. VA loans require a one-time funding fee instead, which can be waived for veterans with service-connected disabilities. USDA loans (for eligible rural properties) also carry no PMI, though they have an annual guarantee fee.
Lender-Paid PMI (LPMI)
Some lenders offer to cover your PMI in exchange for a higher mortgage interest rate. Your monthly payment may appear lower, but you pay through the elevated rate for the life of the loan, well past the point where standard PMI would have cancelled. Do the math carefully before choosing LPMI, because it can cost more over time.
Appreciation-Based Removal
If your home's value has increased significantly, you may be able to request PMI removal before your original amortization schedule would suggest. To do this, request a new appraisal showing your current LTV is at or below 80% based on current market value. Your lender must have your loan for at least two years (at LTV of 75–80%) or five years before allowing this path.