PMI Calculator: Private Mortgage Insurance Cost
Calculate your monthly PMI cost and when it drops off.
Enter loan amount, home value, and PMI rate to see your annual and monthly insurance cost.
Private Mortgage Insurance (PMI)
PMI is insurance that protects the lender, not you, if you default on your mortgage. Lenders require it when your down payment is less than 20% of the home price, meaning your loan-to-value ratio exceeds 80%.
Key formula:
Monthly PMI = Loan Balance × Annual PMI Rate / 12
Typical PMI rates:
| LTV Ratio | Typical Annual PMI Rate |
|---|---|
| 95% – 97% | 0.90% – 1.50% |
| 90% – 95% | 0.60% – 1.10% |
| 85% – 90% | 0.40% – 0.80% |
| 80% – 85% | 0.20% – 0.50% |
PMI rate also depends on your credit score, loan type, and lender. Borrowers with lower credit scores pay higher PMI rates.
When does PMI end?
- Under the Homeowners Protection Act (HPA), you can request PMI cancellation when your LTV reaches 80% (either through payments or appreciation)
- PMI must be automatically cancelled when LTV reaches 78% based on the original amortization schedule
- FHA loans work differently: their MIP (Mortgage Insurance Premium) can last the life of the loan, which is the single strongest argument for refinancing out of an FHA loan once you have equity
LTV formula:
LTV = Loan Balance / Current Home Value × 100
Example:
- Home value: $350,000, Down payment: $17,500 (5%), Loan: $332,500
- LTV at closing: 95%, PMI rate: 1.0%
- Monthly PMI: $332,500 × 0.01 / 12 = $277.08/month
- PMI cancellation: when the balance drops to $280,000 (80% of $350,000)
- At a 6.5% rate over 30 years the balance reaches $280,000 after 10 years 4 months, and $34,358 of PMI has been paid by then
That last line is the one worth sitting with. Ten years of paying for insurance on someone else’s risk is a real number, and it is why an extra 5% down often beats a slightly better interest rate.
PMI is normally collected with your monthly mortgage payment and held in escrow alongside taxes and homeowners insurance.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
SuperGlobalCalculator is independently built and maintained. See how we build and verify our calculators.