PMI Calculator
Private Mortgage Insurance (PMI) is required when you put less than 20% down. See your cost and when you can remove it.
PMI typically costs 0.3%–1.5% of the loan per year. It depends on your credit score, down payment, and loan type. PMI can be removed once you reach 20% equity.
Monthly PMI Cost
$150.00
$1,800 per year
💡 Plain English: With 10% down, you'll pay about $150.00/mo in PMI — that's $1,800/year. The good news: unlike FHA MIP, conventional PMI can be removed once you reach 20% equity (either through paying down the loan or home value appreciation). You can also request removal earlier if your home has appreciated enough to reach 20% equity.
About the PMI Calculator
Private mortgage insurance (PMI) protects the lender if you stop making payments. It is required on conventional loans with less than 20% down and adds to your monthly housing payment until you build enough equity.
How this calculator works
Enter your loan amount, down payment, and loan term. The calculator estimates your monthly PMI cost based on the loan-to-value ratio and loan type.
The math, in plain English
Monthly PMI ≈ loan amount × PMI rate ÷ 12. The PMI rate depends on loan-to-value, credit score, and term, typically ranging from 0.3% to 1.5% of the loan per year.
Key terms
- •PMI — private mortgage insurance required on low-down-payment conventional loans
- •Loan-to-value (LTV) — loan amount divided by home value
- •Cancellation — PMI is removed automatically at 78% LTV
Tips & things to know
- ✓Reach 80% LTV and request PMI removal in writing to lower your payment sooner.
- ✓A higher credit score significantly lowers your PMI rate.
- ✓Lender-paid PMI trades a higher rate for no separate PMI charge — compare carefully.
Frequently asked questions
How do I get rid of PMI?+
PMI cancels automatically at 78% LTV, or you can request removal in writing once you reach 80% LTV.
Is PMI the same as MIP?+
No. PMI applies to conventional loans; MIP (mortgage insurance premium) applies to FHA loans and often lasts for the life of the loan.
This calculator is for educational purposes only and uses estimates. Always consult a licensed mortgage professional for advice specific to your situation.