# PMI Calculator – Private Mortgage Insurance

URL: https://speedycalculator.com/calculators/finance/pmi/
Last updated: 2026-10-25

> The PMI calculator estimates the private mortgage insurance on a conventional loan with less than 20% down – the yearly and monthly premium based on your loan-to-value and credit score – and when it can be removed.

## Inputs

- Home price
- Down payment (%)
- Credit score
- Interest rate (%)
- Loan term (years, months)

## Results

- Mortgage loan
- LTV ratio
- Estimated PMI rate
- Annual PMI
- Monthly PMI
- Months until PMI is removed (78% LTV)
- Total PMI paid

## Formula

```
LTV = loan ÷ home price
Annual PMI = loan × PMI rate (about 0.3–1.5%, higher for lower credit scores and higher LTV)
PMI ends automatically when the balance reaches 78% of the original value
```

## Explanation

PMI protects the lender, not you. It typically costs 0.3–1.5% of the loan a year. You can ask to cancel it once you reach 20% equity, and lenders must drop it at 22% equity on schedule.

### How to use the PMI Calculator – Private Mortgage Insurance

- **Home price**
- **Down payment**
- **Credit score**
- **Interest rate**
- **Loan term**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the home price, down payment, credit score band, interest rate and term.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterHome priceAmount in your currencyDown paymentIn %Credit scoreChoose one: 760+, 720–759, 680–719, 640–679 …Interest rateIn %Loan termUnits: years, months

### What each result means

- **Mortgage loan** = [Home price]×(1 - [Down payment]÷100)
- **LTV ratio** = [Mortgage loan]÷[Home price]×100
- **Annual PMI** = [Mortgage loan]×[Estimated PMI rate]÷100
- **Monthly PMI** = [Annual PMI]÷12
- **Total PMI paid** = [Monthly PMI]×[Months until PMI is removed (78% LTV)]

### Example values

How the main result changes when **Home price** changes and everything else stays at the example values above:

Home priceMonthly PMI200,00067.5300,000101.25400,000135500,000168.75600,000202.5800,000270

## Worked example

Inputs — Home price: $400,000; Down payment: 10 %; Credit score: 720–759; Interest rate: 6.5 %; Loan term: 30 years.

Results — Mortgage loan = $360,000.00; LTV ratio = 90 %; Estimated PMI rate = 0.45 %; Annual PMI = $1,620.00; **Monthly PMI = $135.00**; Months until PMI is removed (78% LTV) = 109; Total PMI paid = $14,673.90.

## FAQ

**How much is PMI?**
Usually 0.3–1.5% of the loan per year.

**How do I avoid PMI?**
Put down 20%, use a piggyback loan or a VA loan.

**When does PMI go away?**
You can request removal at 80% LTV; it ends automatically at 78%.

**What formula does the PMI Calculator – Private Mortgage Insurance use?**
LTV = loan ÷ home price.


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)