PMI Calculator — Private Mortgage Insurance
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.
Monthly PMI 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 (i.e., 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 have different rules — MIP (Mortgage Insurance Premium) may last the life of the loan
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 = $276.92/month
- PMI cancellation: when balance drops to $280,000 (80% of $350,000)
PMI is typically added to your monthly mortgage payment and held in escrow.