Estimate monthly borrower-paid private mortgage insurance for a new conventional mortgage, with annual cost, initial LTV and illustrative 30-year scheduled-balance thresholds. The calculator does not approve cancellation of existing coverage.
PMI Formula
Private mortgage insurance is priced as an annual percentage of the loan amount. The calculator first finds the loan from the price and down payment, then converts the annual PMI rate into a monthly cost:
L = P - D
PMImonthly = L * r / 1200 PMIannual = L * r / 100
Variables:
- P is the home price
- D is the down payment in dollars (the calculator converts a percent entry for you)
- L is the loan amount
- r is the quoted annual PMI rate as a percent of the original loan amount; pricing and premium basis vary by loan
- PMImonthly and PMIannual are the monthly and yearly PMI costs
Enter the home price, down payment in dollars or percent, and your quoted annual PMI rate. At 20% or more down, the model reports zero PMI for a new conventional loan; this does not remove existing coverage. Below 20% down, it estimates annual and monthly premiums on the original loan amount.
The timeline assumes a new 30-year fixed loan, no extra principal, and original value equal to entered price. The optional 6.5% interest rate is an editable illustration. If the original appraisal is lower than the purchase price, the servicer’s original value and threshold dates differ. See the CFPB’s PMI cancellation guidance.
Monthly PMI on a $350,000 Loan by PMI Rate
The following numerical examples apply assumed annual PMI rates to an original $350,000 loan. They are not current quotes, a guaranteed rate range or a credit-score pricing model. Obtain your own premium from the lender.
| Annual PMI rate | Monthly PMI | Annual PMI |
|---|---|---|
| 0.30% | $87.50 | $1,050.00 |
| 0.40% | $116.67 | $1,400.00 |
| 0.50% | $145.83 | $1,750.00 |
| 0.60% | $175.00 | $2,100.00 |
| 0.75% | $218.75 | $2,625.00 |
| 1.00% | $291.67 | $3,500.00 |
| 1.25% | $364.58 | $4,375.00 |
| 1.50% | $437.50 | $5,250.00 |
Example Problems
Example 1: Estimate PMI with 10% down.
You buy a $400,000 home with 10% down and a quoted PMI rate of 0.75%. The down payment is 400,000 * 0.10 = $40,000, so the loan is L = 400,000 - 40,000 = $360,000 and the LTV is 90.00%.
PMImonthly = 360,000 × 0.75 / 1200 = $225.00, or $2,700.00 per year. At 6.5% over 30 years, the scheduled balance first reaches 80% of an assumed $400,000 original value after 95 payments and 78% after 109 payments. These threshold months do not establish that cancellation conditions have been met.
Example 2: Check a 20% down payment.
You buy a $300,000 home with $60,000 down: 20.00% down, a $240,000 loan and 80.00% initial LTV. The model estimates no PMI for this new conventional loan, rather than deciding whether existing PMI can be cancelled.
Frequently Asked Questions
How can I get rid of PMI early?
For many covered loans, a cancellation request at 80% of original value requires a written request, good payment history/current payments and property-value/lien conditions. Automatic termination generally uses the scheduled 78% date if current; a midpoint backstop may apply. Extra payments can affect requested cancellation, while appreciation follows separate investor/servicer rules. Verify applicability and dates with your servicer.
How much does PMI cost per month?
PMI pricing depends on the loan and borrower profile. On a $350,000 loan, an assumed annual rate of 0.30% gives $87.50 monthly; 1.50% gives $437.50. These examples are arithmetic, not a quoted range. The CFPB describes PMI payment options, including monthly, upfront and combined arrangements; this tool models the monthly arrangement only.
Is PMI the same as FHA mortgage insurance?
No. This tool models borrower-paid PMI on a new conventional mortgage. FHA, VA and USDA programs and lender-paid insurance have different coverage and cancellation rules, which this calculator does not determine. Ask the servicer which rules apply to your loan.
