Updated on April 21st, 2026

PMI Calculator

Created By Jehan Wadia

Please enter a valid home price.
$40,000 (10.00%)
Down payment cannot exceed home price.
Please enter a valid interest rate.
Please enter a valid PMI rate (0.1%–2.0%).


Loan Amount
$360,000
Loan-to-Value (LTV)
90.0%
80% LTV
90.0%
PMI Cost Summary
Monthly PMI Cost $150.00
Annual PMI Cost $1,800.00
Total PMI Paid Until Removal $13,350.00
Monthly Payment with PMI
$2,484.69
Monthly Payment without PMI
$2,334.69
PMI can be removed after 89 months (7 years, 5 months) when your LTV reaches 80%.
LTV Over Time & PMI Period
Amortization Schedule (Yearly)
Year Beginning Balance Annual Principal Annual Interest Annual PMI Ending Balance LTV PMI Status

Introduction

Private Mortgage Insurance, or PMI, is an extra cost added to your monthly mortgage payment when you put down less than 20% on a home. Our PMI Calculator helps you figure out how much PMI you will pay each month and each year. Just enter your home price, down payment, and loan details, and the calculator does the math for you. Knowing your PMI cost ahead of time helps you plan your budget and decide if a bigger down payment makes sense. Once you build enough equity in your home — usually 20% — you can ask your lender to remove PMI and lower your monthly payment.

How to Use Our PMI Calculator

Enter your home loan details below to find out how much private mortgage insurance (PMI) you will pay each month and each year.

Home Price: Type in the total price of the home you want to buy. This is the full purchase price, not the amount you are borrowing. If you are still figuring out what you can afford, our Home Affordability Calculator can help you set a realistic budget.

Down Payment: Enter the amount of money you plan to pay upfront. If your down payment is less than 20% of the home price, you will likely need to pay PMI.

Loan Amount: This is the total amount you need to borrow. It equals the home price minus your down payment.

PMI Rate: Enter the annual PMI rate as a percentage. Most PMI rates fall between 0.5% and 1.5% of the loan amount per year. Your rate depends on your credit score and down payment size.

Loan Term: Choose how many years your mortgage will last. Common options are 15 years or 30 years.

Interest Rate: Enter the annual interest rate on your mortgage. This is the rate your lender charges you to borrow the money. If you want to understand the true cost of your loan including fees, our APR Calculator can help.

Once you fill in these fields, the calculator will show you your monthly PMI cost, your total monthly mortgage payment including PMI, and when you can expect PMI to drop off. PMI is removed once your loan balance reaches 80% of the original home value, so the calculator will also tell you how many months it takes to reach that point.

What Is PMI (Private Mortgage Insurance)?

Private Mortgage Insurance, or PMI, is an extra fee your lender charges when you buy a home with a down payment of less than 20%. It protects the lender — not you — in case you stop making payments on your loan. Even though PMI does not benefit you directly, it makes it possible to buy a home without saving up a full 20% down payment.

How Is PMI Calculated?

PMI is calculated as a percentage of your original loan amount, not the home price. The annual PMI rate typically falls between 0.2% and 2.0%, depending on your credit score, the size of your down payment, and your lender. To find your monthly PMI cost, multiply your loan amount by the annual PMI rate, then divide by 12. For example, if you borrow $360,000 and your PMI rate is 0.50%, your annual PMI cost is $1,800, which works out to $150 per month added to your mortgage payment.

What Is LTV and Why Does It Matter?

LTV stands for Loan-to-Value ratio. It compares how much you owe on your home to how much the home is worth. You calculate it by dividing your loan amount by the home price. For instance, if you buy a $400,000 home with a $40,000 down payment, your loan is $360,000 and your LTV is 90%. Lenders use LTV to measure their risk — the higher your LTV, the riskier the loan is for them, which is exactly why PMI exists for loans above 80% LTV. Your LTV also plays a key role when calculating your debt-to-income ratio, which lenders use alongside LTV to approve your mortgage.

When Can You Remove PMI?

Under the Homeowners Protection Act, you have the right to request PMI removal once your loan balance drops to 80% of the original home value. Your lender is also required to automatically cancel PMI when your balance reaches 78% of the original value. You can reach these thresholds faster by making extra principal payments or by choosing a shorter loan term, such as 15 years instead of 30. Our Mortgage Extra Payment Calculator can show you exactly how much time and money extra payments save, while the Mortgage Payoff Calculator helps you plan a strategy for paying off your loan early and eliminating PMI sooner.

Ways to Avoid PMI Altogether

  • Put 20% or more down. This is the most straightforward way to skip PMI entirely.
  • Piggyback loan. Some borrowers take out a second, smaller loan to cover part of the down payment so the primary mortgage stays at or below 80% LTV. A HELOC Calculator can help you evaluate this option if you already own a home.
  • Lender-paid PMI (LPMI). Your lender covers PMI in exchange for a slightly higher interest rate. You pay more over time, but there is no separate PMI charge.
  • VA or USDA loans. These government-backed loans do not require PMI, though they may have other fees.

How to Use This Calculator

Enter your home price, down payment, loan term, interest rate, and estimated PMI rate. The calculator will show your monthly and annual PMI cost, how long you will pay PMI before it can be removed, and the total amount of PMI you will pay over that period. It also displays a year-by-year amortization schedule and a chart showing how your LTV ratio drops over time. The highlighted row in the schedule marks the year when PMI falls off, so you can clearly see how much of your money goes toward this extra cost and when it ends. For a broader view of the costs involved in purchasing a home, you may also want to use our Closing Cost Calculator and Property Tax Calculator.

Tips to Reduce Your PMI Costs

A higher credit score almost always means a lower PMI rate, so improving your credit before applying for a mortgage can save you hundreds of dollars each year. Making a larger down payment — even just a few extra percentage points — also reduces both the PMI rate and the loan amount it is based on, giving you a double benefit. Finally, once you believe your home has increased in value enough to bring your LTV below 80%, you can request a new appraisal and ask your lender to remove PMI early. If you are weighing whether to continue renting or buy with PMI, our Rent vs Buy Calculator can help you compare the long-term financial impact of each option. And if rates have dropped since you took out your loan, the Refinance Calculator can show you whether refinancing could eliminate PMI and reduce your overall costs.


Frequently Asked Questions

What is a good PMI rate?

A good PMI rate is between 0.2% and 0.5% of your loan amount per year. Your rate depends on your credit score and how much you put down. People with credit scores above 760 and down payments close to 20% usually get the lowest rates. Rates above 1% are common for borrowers with lower credit scores or very small down payments.

How much does PMI add to my monthly payment?

PMI typically adds $30 to $300 or more per month depending on your loan size and PMI rate. For example, on a $300,000 loan with a 0.5% PMI rate, you would pay about $125 per month. On the same loan with a 1% rate, you would pay about $250 per month.

Is PMI tax deductible?

PMI has been tax deductible in some years, but Congress has to renew this deduction periodically. As of now, check with the IRS or a tax professional to see if the deduction is available for the current tax year. When it is allowed, it works like a mortgage interest deduction for qualifying borrowers.

Do I pay PMI for the entire life of my loan?

No. PMI is temporary. Once your loan balance drops to 80% of the original home value, you can ask your lender to remove it. Your lender must automatically cancel it when the balance reaches 78%. This calculator shows you exactly how many months it takes to reach that point.

What is the difference between PMI and homeowners insurance?

PMI protects your lender if you stop making payments. Homeowners insurance protects you against damage to your home from things like fire, storms, or theft. They are two separate costs. You need homeowners insurance no matter how much you put down, but PMI is only required when your down payment is under 20%.

Does PMI apply to FHA loans?

FHA loans have their own version called Mortgage Insurance Premium (MIP), not PMI. MIP works differently — it includes an upfront fee plus a monthly charge, and on most FHA loans it lasts for the entire life of the loan. PMI, which this calculator estimates, applies to conventional loans only.

Can I make extra payments to get rid of PMI faster?

Yes. When you make extra payments toward your loan principal, your balance drops faster. This means you reach the 80% LTV threshold sooner and can request PMI removal earlier. Even small extra payments each month can shave months or years off your PMI.

What does the highlighted row in the amortization table mean?

The highlighted row marks the year when your loan balance drops below 80% of the home's original value. This is the year PMI gets removed. Every row after that shows $0 for PMI, so you can clearly see how your payment changes once PMI falls off.

What if my home value goes up — can I remove PMI early?

Yes. If your home's market value has risen enough that your remaining loan balance is 80% or less of the new value, you can contact your lender and request a new appraisal. If the appraisal confirms the higher value, the lender may agree to remove PMI ahead of schedule.

What does the LTV ratio gauge show?

The LTV ratio gauge is a visual bar that shows your current loan-to-value percentage. A red bar means your LTV is above 80% and PMI is required. A green bar means your LTV is at or below 80% and PMI is not needed. The red marker on the bar shows the 80% threshold.

How does my credit score affect PMI?

Your credit score has a big impact on your PMI rate. A higher score means a lower rate. Someone with a 760 credit score might pay 0.2% to 0.4% per year, while someone with a 640 score could pay 1% to 2% per year on the same loan. Improving your credit before buying a home can save you a lot of money on PMI.

Can I switch between dollar and percentage for the down payment?

Yes. Use the $ and % toggle buttons next to the down payment field. When you enter a dollar amount, the calculator converts it to a percentage automatically, and vice versa. The display below the input shows both values so you always know the exact amount and percentage.

What happens if I put exactly 20% down?

If your down payment is 20% or more, your LTV is 80% or less and PMI is not required. The calculator will show a green message confirming that PMI is not needed, and your monthly PMI cost will be $0.

Is PMI the same as mortgage protection insurance?

No. PMI protects the lender if you default on your loan. Mortgage protection insurance (also called mortgage life insurance) is a separate product that pays off your mortgage if you die or become disabled. They are completely different products with different purposes.


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