PMI Calculator: Calculate Monthly PMI

Calculate monthly PMI from your home price, down payment, credit score, and loan type. Estimate total mortgage insurance and when PMI may end.

How the PMI Calculator Estimates Monthly PMI

  • PMI is required on conventional loans when the down payment is less than 20%. It protects the lender — not you — in case of default, and typically costs between 0.2% and 2% of the loan amount per year.
  • PMI cost varies based on your credit score, loan-to-value (LTV) ratio, and loan type. Better credit and a larger down payment usually mean a lower PMI rate.
  • You can request PMI cancellation once your loan balance reaches 80% of the original purchase price. By law (Homeowners Protection Act), lenders must automatically terminate PMI when you reach 78% LTV based on the original schedule.

Calculation details

Methodology

Estimated monthly PMI equals the loan amount multiplied by an annual PMI rate and divided by 12. The calculator uses loan-to-value ratio and credit inputs to estimate a rate range, then follows the amortization schedule to estimate when the balance may reach cancellation thresholds.

Assumptions and limitations

  • Only a lender or mortgage insurer can quote the actual PMI premium; credit, LTV, occupancy, loan type, and insurer pricing affect it.
  • Conventional PMI and FHA mortgage insurance follow different pricing and cancellation rules and should not be treated as interchangeable.
  • Cancellation dates are estimates based on scheduled payments and original value; eligibility can also depend on payment history, property value, and lender requirements.

Worked example: 10% down with estimated PMI

  • Home price: $400,000
  • Down payment: $40,000; loan amount: $360,000
  • Illustrative annual PMI rate: 0.60%

Estimated PMI: $180 per month

The calculation is $360,000 × 0.60% ÷ 12. This is an illustration, not a quote; the lender's disclosed premium should replace the estimated rate.

Official sources

Frequently Asked Questions

How much does PMI cost per month?

PMI typically costs 0.2%–2% of your original loan amount per year, paid monthly. On a $300,000 loan, that's $50–$500/month. The actual rate depends on your credit score, down payment, and loan type. Borrowers with credit scores above 760 and 10%+ down generally pay at the low end of that range.

How do I get rid of PMI?

On conventional loans, you can request PMI cancellation in writing once your loan balance reaches 80% of the original purchase price (based on original value, not current market value). Your lender must automatically cancel PMI when the balance drops to 78%. You can also have the home reappraised — if values have risen and your current LTV is below 80%, you may be able to cancel PMI earlier.

Is PMI the same as MIP on FHA loans?

No. PMI (private mortgage insurance) applies to conventional loans and can be removed once you reach 20% equity. MIP (mortgage insurance premium) applies to FHA loans and works differently: FHA loans originated with less than 10% down require MIP for the life of the loan. With 10%+ down, MIP is removed after 11 years. This is one reason borrowers with strong credit often prefer conventional loans.

Should I put 20% down to avoid PMI?

Not necessarily. PMI adds cost, but tying up a large down payment has an opportunity cost too — that money could be invested. Whether to pay PMI or put 20% down depends on your investment returns vs. PMI cost, how quickly you'll reach 20% equity, and your overall financial picture. Many borrowers find a 10% down payment with PMI is actually better than depleting savings for 20% down.

How to use this estimate

This calculator is an educational planning tool. Results are based on the figures and assumptions entered by the reader, use standard mortgage mathematics, and are not a loan offer, approval, or substitute for a lender's Loan Estimate. Taxes, insurance, fees, mortgage insurance, and available rates vary by borrower, property, lender, and location.

Review the assumptions, compare more than one scenario, and confirm the final numbers with a licensed mortgage professional before making a financial commitment.