PMI (Private Mortgage Insurance) Calculator
Estimate monthly and annual private mortgage insurance from your home price, down payment, and PMI rate, plus the loan-to-value that triggers it.
How to use this tool
- Enter the home price.
- Enter your down-payment percentage.
- Enter the annual PMI rate (often 0.3%–1.5%).
- Read the monthly and annual PMI.
- Check the LTV — at 80% or below, PMI drops to $0.
A down payment under 20% usually means PMI. This calculator estimates your monthly and annual private mortgage insurance and shows the loan-to-value that triggers it.
Formula
PMI applies only when the loan-to-value exceeds 80%:
Loan = Price − (Price × Down%) and LTV = (Loan ÷ Price) × 100.
If LTV > 80%: Annual PMI = Loan × PMI rate, Monthly PMI = Annual PMI ÷ 12.
If LTV ≤ 80% (20%+ down), PMI is $0.
How it works
Private mortgage insurance protects the lender, not the borrower, when a conventional loan's down payment is under 20%. It is charged as an annual percentage of the loan balance — commonly 0.3% to 1.5%, driven by your credit score and loan-to-value — and usually paid in monthly installments added to your mortgage payment.
This calculator derives your loan and loan-to-value from the price and down payment, and if the LTV exceeds 80% it multiplies the loan by your PMI rate to get the annual premium, then divides by twelve for the monthly cost. At 20% down or more, the LTV is 80% or below and the tool correctly returns zero PMI.
PMI is not permanent. Under the Homeowners Protection Act, a borrower can request cancellation once the balance reaches 80% of the original value, and the servicer must automatically terminate it at 78%. Because the premium here is computed on the original loan amount, it is a close approximation; some lenders recompute PMI on the declining balance. Paying down to 80% LTV or refinancing after the home appreciates are the usual ways to drop PMI early.
Worked example
$300,000 home, 10% down, 0.5% PMI rate
- Down payment = $300,000 × 10% = $30,000; loan = $270,000.
- LTV = $270,000 ÷ $300,000 × 100 = 90.00% (above 80%, so PMI applies).
- Annual PMI = $270,000 × 0.5% = $1,350.
- Monthly PMI = $1,350 ÷ 12 = $112.50.
Monthly PMI $112.50 | Annual PMI $1,350.00 | Loan amount $270,000.00 | LTV 90.00%
Monthly PMI on a $300,000 home at 0.5%/yr, by down payment
| Down % | LTV | Monthly PMI |
|---|---|---|
| 3% | 97% | $121.25 |
| 5% | 95% | $118.75 |
| 10% | 90% | $112.50 |
| 15% | 85% | $106.25 |
Key terms
- Private mortgage insurance (PMI)
- Insurance a conventional lender requires when the down payment is below 20%, protecting the lender against default.
- Loan-to-value (LTV)
- The loan amount as a percent of the property value; PMI typically applies when LTV is above 80%.
- PMI rate
- The annual PMI premium as a percent of the loan, usually 0.3%–1.5% depending on credit and LTV.
- Homeowners Protection Act
- The federal law requiring lenders to cancel PMI at the borrower's request at 80% LTV and automatically at 78%.
Frequently asked questions
- How much is PMI per month?
- PMI typically costs 0.3%–1.5% of the loan per year, split into monthly payments. On a $270,000 loan at 0.5%, that is $1,350 a year or about $112.50 a month. Your exact rate depends on credit score and loan-to-value.
- When do I have to pay PMI?
- Conventional loans require PMI when your down payment is below 20% (loan-to-value above 80%). At 20% down or more, no PMI is charged. FHA loans use a separate mortgage insurance premium that follows different rules.
- How do I get rid of PMI?
- You can request cancellation once your loan balance reaches 80% of the original value, and your servicer must automatically remove it at 78%. Paying down principal or refinancing after the home appreciates can also eliminate it.