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
| Field | What to enter |
|---|---|
| Home price | Amount in your currency |
| Down payment | In % |
| Credit score | Choose one: 760+, 720–759, 680–719, 640–679 … |
| Interest rate | In % |
| Loan term | Units: 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 price | Monthly PMI |
|---|---|
| 200,000 | 67.5 |
| 300,000 | 101.25 |
| 400,000 | 135 |
| 500,000 | 168.75 |
| 600,000 | 202.5 |
| 800,000 | 270 |
Formula
LTV = loan ÷ home priceAnnual 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 valueWorked 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.
Frequently asked questions
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.