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.
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 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
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.
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%.
Sources
Guides on this topic
- How Much House Can I Afford? The 28/36 Rule With a Worked Example: Work out a realistic home budget with the 28/36 rule, debt-to-income ratio, down payment, PMI and closing costs, then stress-test it against take-home pay and higher rates.
- How to Calculate a Mortgage Payment (Formula + Example): The mortgage payment formula explained step by step, with a worked example, what PITI adds on top, and how rate, term, down payment and extra payments change what you pay.