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🏡 PMI Calculator - Private Mortgage Insurance Cost

Estimate your Private Mortgage Insurance cost by entering the home value, down payment, loan term, and credit score range to see monthly, annual, and total PMI over the loan life.

Home Value / Purchase Price ($)

Down Payment ($)

Loan Term (years)

Credit Score Range

What is this tool?

Private Mortgage Insurance (PMI) is a type of insurance that protects the lender — not the borrower — in the event that the borrower defaults on a conventional mortgage. PMI is typically required when your down payment is less than 20% of the home's purchase price, meaning your loan-to-value (LTV) ratio exceeds 80%. The cost of PMI is added to your monthly mortgage payment and can range from 0.3% to 1.5% of the original loan amount per year, depending on your credit score, the size of your down payment, the type of loan, and the specific lender. Understanding PMI is essential for any home buyer putting less than 20% down. On a $300,000 loan with a PMI rate of 0.55%, you would pay approximately $1,650 per year ($137.50 per month) in addition to your mortgage payment, property taxes, and homeowners insurance. Over five years — the typical time it takes many homeowners to reach 80% LTV through amortization and appreciation — that adds up to $8,250. PMI is not the same as the mortgage insurance premiums (MIP) required on FHA loans, which are paid to the Federal Housing Administration and typically last for the life of the loan unless you refinance. This PMI calculator is designed for home buyers, current homeowners, and real estate professionals who need a reliable estimate of private mortgage insurance costs. Enter the home value, down payment, loan term, and your credit score range, and the tool instantly returns the estimated annual PMI rate, monthly PMI cost, annual PMI cost, total PMI over the expected cancellation period, and the LTV at which your PMI can be cancelled. Use this tool alongside our down payment and LTV calculators to plan your full mortgage strategy and understand when you can request PMI removal. For the estimated cancellation timeline, this calculator assumes a 6% annual mortgage interest rate when building the amortization schedule — a conservative assumption; your actual rate will change how quickly you reach the 78% LTV threshold.

How it works

The calculator takes the home value, down payment amount, loan term, and credit score range as inputs. It first derives the loan amount (home value minus down payment) and computes the LTV ratio. If the LTV is 80% or lower, no PMI is needed. If the LTV exceeds 80%, the tool selects an estimated annual PMI rate based on the combination of LTV band and credit score range. The table below shows representative annual PMI rates (as a percentage of the original loan amount) by LTV band and credit score tier. Actual rates vary by lender, loan type, and other factors. | LTV Range | Credit Score ≥ 760 | Credit Score 700–759 | Credit Score 640–699 | Credit Score < 640 | |---|---|---|---|---| | 80.01–85% | 0.25–0.35% | 0.35–0.50% | 0.50–0.65% | 0.65–0.90% | | 85.01–90% | 0.30–0.45% | 0.45–0.65% | 0.65–0.85% | 0.85–1.10% | | 90.01–95% | 0.40–0.55% | 0.55–0.80% | 0.80–1.05% | 1.05–1.35% | | 95.01–97% | 0.55–0.75% | 0.75–1.00% | 1.00–1.25% | 1.25–1.50% | | ≤ 80% | 0% (no PMI) | 0% | 0% | 0% | From the annual PMI rate, the calculator derives: monthly PMI = (loan amount × annual rate) ÷ 12; annual PMI = loan amount × annual rate; and total PMI = annual PMI × estimated years until cancellation. The estimated cancellation year is based on the standard amortization schedule reaching 78% LTV (the automatic termination point under the Homeowners Protection Act). For conventional loans, lenders must automatically cancel PMI when the loan balance reaches 78% of the original home value, provided payments are current. You can also request PMI removal at 80% LTV with a new appraisal. Assumptions disclosed: the 78% cancellation timeline uses a fixed 6% annual interest rate for the amortization schedule, which is conservative — a higher or lower rate changes the number of months to 78% LTV. The 80% removal estimate shown in the result is an approximate heuristic (0.8 × the 78% timeline), not a separate amortization calculation. Loans above 97% LTV are grouped into the highest rate band in the table, so their rate reflects the 95.01–97% tier. The cancellation estimate assumes no extra principal payments.

How to use

Enter the home value or purchase price of the property.
Enter your planned down payment amount (at least 3%, but 20% eliminates PMI entirely).
Enter the loan term in years (most common are 15 or 30 years).
Select your credit score range to get the most accurate PMI rate estimate.
Click the Calculate button to see your monthly, annual, and total estimated PMI cost, plus when PMI can be cancelled.

Frequently Asked Questions

How is PMI different from MIP (FHA mortgage insurance)?

PMI (Private Mortgage Insurance) applies to conventional loans and can be cancelled when your LTV reaches 80% (request) or 78% (automatic). MIP (Mortgage Insurance Premium) applies to FHA loans and consists of an upfront premium plus an annual premium. For FHA loans originated after June 3, 2013, MIP typically lasts for the entire life of the loan unless you refinance into a conventional mortgage.

When can I cancel my PMI?

Under the Homeowners Protection Act (HPA) of 1998, you can request PMI cancellation when your LTV reaches 80% — you will need to provide evidence (such as a new appraisal) that your home value has not declined. When your LTV reaches 78% based on the original amortization schedule, your lender must automatically cancel PMI, provided your payments are current. For FHA loans, MIP removal rules are different and generally require refinancing.

How much does PMI cost per month?

PMI typically costs between 0.3% and 1.5% of the original loan amount per year. On a $250,000 loan, that translates to roughly $63 to $313 per month. The exact rate depends on your credit score, LTV, loan type, and lender. A borrower with a 760+ credit score and 90% LTV might pay around 0.40%, while a borrower with a 660 score and 95% LTV might pay 1.10% or more.

Can I avoid PMI without putting 20% down?

Yes. The most common strategy is a piggyback loan: a first mortgage for 80% of the home value, a second mortgage or HELOC for 10%, and a 10% down payment. This structure avoids PMI but the second loan usually has a higher interest rate. Another option is lender-paid mortgage insurance (LPMI), where the lender covers the PMI in exchange for a slightly higher interest rate — but unlike borrower-paid PMI, LPMI cannot be cancelled because it is built into the rate.

Does PMI cover me or the lender?

PMI protects the lender, not the borrower. If you default on your mortgage, the PMI policy pays the lender for part of their losses. You still lose your home to foreclosure and your credit is severely damaged. PMI does not pay off your loan, protect your equity, or help you avoid foreclosure. Its sole purpose is to reduce the lender''s risk so they are willing to lend at more than 80% LTV.

Is PMI tax deductible?

PMI was tax deductible for eligible taxpayers under the Mortgage Insurance Premiums Deduction, which was extended through 2021. However, this deduction has expired and has not been renewed as of the latest tax legislation. Always consult a tax professional for current rules, as tax laws change frequently and your eligibility depends on your adjusted gross income and filing status.

Can I get a refund on upfront PMI if I cancel early?

It depends on the type of PMI. Borrower-paid monthly PMI stops billing immediately upon cancellation — there is nothing to refund. Single-premium (upfront) PMI may be partially refundable on a pro-rated basis if cancelled within the first few years, but the terms vary by insurer. Lender-paid PMI (LPMI) is non-refundable since it is embedded in your interest rate. Split-premium PMI (part upfront, part monthly) has mixed refund rules.

What assumptions does the 78% cancellation estimate make?

The 78% cancellation timeline is calculated by amortizing your loan at a fixed 6% annual interest rate — a conservative assumption. Your actual mortgage rate will change how quickly you reach 78% LTV. The 80% removal estimate is a rough heuristic (0.8 × the 78% timeline), not a separate amortization calculation. Rates above 97% LTV are grouped into the highest band in the rate table, and the estimate assumes no extra principal payments.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Tips & Advice

The single most effective way to eliminate PMI is to reach 80% LTV as quickly as possible. You can accelerate this by making extra principal payments — even one additional payment per year can shave years off your timeline. Another option is a biweekly payment plan, which results in 26 half-payments (13 full payments) per year instead of 12. If home prices in your area are rising, your LTV improves automatically; you can request a new appraisal to prove your home value has increased enough to cancel PMI at the 80% threshold. For new purchases, consider a piggyback loan structure: an 80% first mortgage, a 10% second mortgage or HELOC, and a 10% down payment — this avoids PMI entirely, though the second loan often has a higher rate. Improve your credit score before buying: a borrower with a 760+ score pays roughly half the PMI rate of someone with a 660 score on the same loan. Avoid paying PMI upfront as a single premium unless you plan to sell or refinance within a few years — the monthly option is usually better because you can cancel it when you reach 80% LTV, whereas upfront PMI is non-refundable. If you have an FHA loan with MIP, the only way to remove it is typically to refinance into a conventional loan once your LTV reaches 80%. Always compare PMI quotes from multiple lenders — rates for the same borrower can vary by 0.2% or more between lenders, which translates to thousands of dollars over the PMI period.

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