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PMI Calculator

Calculate your monthly private mortgage insurance cost, see exactly when PMI drops off your loan, and decide whether putting 20% down makes financial sense for your situation.

Estimate your monthly PMI cost based on loan amount and credit score
$
%
Below 20% triggers PMI on conventional loans
Higher score = lower PMI rate
%
Current 30-yr conventional avg ~6.5% (April 2026)
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How to Use This Calculator

Monthly PMI tab

Enter your home price, down payment (as a dollar amount or percentage), and credit score range. The calculator looks up the 2026 average PMI rate for your credit tier and shows your estimated monthly PMI cost, annual PMI cost, and how PMI adds to your total monthly mortgage payment. Use "More options" to adjust the interest rate and loan term.

PMI Removal Date tab

Enter your loan details and loan start date to see exactly when your PMI will drop. Under the Homeowners Protection Act, you can request removal at 80% LTV and PMI automatically cancels at 78% LTV. Add an extra monthly principal payment to see how much sooner PMI disappears and how many dollars you save.

PMI vs Bigger Down Payment tab

Stuck deciding between 10% down with PMI or 20% down with no PMI? This tab shows the break-even analysis: if you can earn a higher return by investing the extra down payment cash, you may come out ahead with the smaller down payment. Enter your assumed investment return rate (default 7%, which approximates the S&P 500 long-run real return) to model your scenario.

Share your result

All inputs are encoded in the URL. Click Share to send your exact scenario to a partner, lender, or financial advisor.

The Formula

PMI is priced as an annual percentage of your loan amount, billed monthly:

Monthly PMI = Loan Amount × Annual PMI Rate ÷ 12

Where:
  Loan Amount = Home Price − Down Payment
  Annual PMI Rate = 0.29% to 0.94% (varies by credit score & LTV)

LTV = Loan Amount ÷ Home Price × 100

PMI required when: LTV > 80% (Down Payment < 20%)
PMI removal request: LTV ≤ 80% (borrower-initiated)
PMI auto-cancel: LTV ≤ 78% (Homeowners Protection Act)

The PMI rate varies primarily by credit score and LTV. Higher LTV (smaller down payment) and lower credit scores both push the rate higher. Rates also depend on the specific lender, loan program, and whether you choose borrower-paid PMI vs lender-paid PMI (LPMI, where the cost is baked into a higher interest rate).

Example

Alex — First-time buyer in Denver, CO

Alex is buying a $400,000 home with 10% down ($40,000). Credit score: 725 (720-759 range). Conventional 30-year loan at 6.5% interest rate. First payment: May 2026.

Monthly PMI calculation

Home price$400,000
Down payment (10%)$40,000
Loan amount$360,000
LTV ratio90%
PMI rate (720-759 credit)0.43%/yr
Monthly PMI$129/mo
Annual PMI cost$1,548/yr

PMI removal timeline

Balance must reach (80% LTV)$320,000
Can request removal (80% LTV)approx. Year 8
Auto-cancels (78% LTV)approx. Year 10
Total PMI paid before cancel~$15,500

If Alex instead added $200/month in extra principal payments, PMI would drop roughly 2 years earlier, saving approximately $3,000 in total PMI costs. The extra payments also reduce total interest paid on the loan.

FAQ

Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20% of the purchase price — meaning LTV exceeds 80%. PMI protects the lender if you default, not you. It is separate from homeowners insurance. FHA loans have their own equivalent called MIP (Mortgage Insurance Premium), and VA and USDA loans have no equivalent requirement.
PMI rates in 2026 average between 0.20% and 1.50% of the loan amount annually. Your credit score is the biggest driver: 760+ credit averages 0.29%, while 620-679 averages 0.94%. LTV also matters — a 5% down payment costs more than 15% down at the same credit score. On a $360,000 loan, PMI ranges from about $87/month (760+ credit) to $282/month (620-679 credit).
There are two paths under the Homeowners Protection Act of 1998. First, you can submit a written request to your lender once your balance reaches 80% of the original purchase price — you'll typically need a clean payment history (no 30-day lates in the past year, no 60-day lates in the past two years) and may need an appraisal. Second, PMI automatically cancels when your scheduled balance reaches 78% of the original price. Make extra principal payments to reach either milestone faster.
Lender-paid PMI means you get a slightly higher interest rate instead of a separate PMI line item. This can be attractive if you plan to sell or refinance within 5-7 years, since the higher rate is baked in and you won't hit 80% LTV quickly enough to benefit from standard PMI cancellation. However, LPMI lasts for the full loan term — you can't cancel it. If you stay long-term, borrower-paid PMI that cancels at 80% LTV is usually the better financial deal.
Not automatically. The HPA's automatic cancellation at 78% LTV uses the original purchase price, not current market value. However, many lenders allow you to request PMI removal based on a new appraisal showing appreciation pushed your LTV below 80%. Requirements typically include at least 2 years of on-time payments (or 5 years if between 80-85% LTV). Contact your lender directly to ask about their appraisal-based PMI removal policy.

Related Calculators

FHA Loan Calculator
Compare FHA MIP vs conventional PMI — FHA has different rules and rates.
Down Payment Calculator
Plan your savings timeline to reach 10%, 15%, or 20% down.
Home Affordability Calculator
Find out how much house you can afford based on income and debts.
Mortgage Calculator
Full monthly payment with principal, interest, taxes, and insurance.
Amortization Calculator
See how your balance shrinks month by month toward that 80% LTV milestone.
Closing Cost Calculator
Estimate all costs at closing beyond the down payment.

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