Estimate private mortgage insurance with this PMI calculator: monthly and annual cost, LTV, and how many months until 80% and 78% LTV for PMI removal.
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 annual PMI rate as a percent of the loan, typically 0.3–1.5% depending on credit score and LTV
- PMImonthly and PMIannual are the monthly and yearly PMI costs
Enter the home price, your down payment in dollars or percent, and an annual PMI rate (0.75% is a reasonable middle estimate if you do not have a quote). If your down payment is 20% or more, the calculator reports that no PMI is required. Otherwise it shows the monthly and annual PMI cost along with your loan-to-value ratio.
The calculator also estimates when you can drop PMI. Under the Homeowners Protection Act, you can request cancellation once your balance reaches 80% of the home’s original value, and PMI terminates automatically at 78%. Using a 30-year amortization at the interest rate in the advanced option (6.5% by default), the tool counts the months until your balance crosses each threshold, assuming no extra payments.
Monthly PMI on a $350,000 Loan by PMI Rate
This table shows what a $350,000 loan costs in PMI across the typical 0.3–1.5% annual rate range. Borrowers with high credit scores and lower LTVs land near the bottom of the range; low scores and 3–5% down payments land near the top.
| 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 per month, or $2,700.00 per year. At a 6.5% mortgage rate on a 30-year schedule, the balance reaches 80% of the original value ($320,000) in about 95 months (about 7.9 years), when you can request removal, and reaches 78% ($312,000) in about 109 months (about 9.1 years), when PMI terminates automatically.
Example 2: Check a 20% down payment.
You buy a $300,000 home with $60,000 down. That is exactly 20.00% down, the loan is $240,000, and the LTV is 80.00%, so no PMI is required.
Frequently Asked Questions
How can I get rid of PMI early?
You can request cancellation once your balance hits 80% of the original value, and it must terminate automatically at 78% if you are current on payments. To get there faster, make extra principal payments, or ask your servicer to recognize a higher current value through a new appraisal after significant appreciation or improvements. Refinancing into a new loan at or below 80% LTV also eliminates PMI.
How much does PMI cost per month?
Conventional PMI typically runs 0.3% to 1.5% of the loan amount per year, which is roughly $88 to $438 per month on a $350,000 loan. Your exact rate depends mostly on your credit score, your down payment size, and the loan program. Borrowers with scores above 760 and 15% down sit near the low end, while scores in the 600s with 3% down sit near the high end.
Is PMI the same as FHA mortgage insurance?
No. PMI applies to conventional loans and can be cancelled once you build enough equity. FHA loans instead charge a 1.75% upfront mortgage insurance premium plus an annual premium, and if you put down less than 10%, that annual premium lasts for the life of the loan rather than dropping off at 78% LTV. Many FHA borrowers eventually refinance into a conventional loan to shed the insurance.
