PMI Calculator
Estimate what mortgage insurance adds to your payment.
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PMI Calculator by TheCalcTools
How the PMI Calculator works
Enter the home price, your down payment percentage and the PMI rate quoted by your lender.
PMI is a percentage of the loan balance charged each year, paid monthly.
In the US, you can usually request cancellation once the balance reaches 80% of the original value.
The formula
Worked example
Using the default values shown in the calculator:
| Home price | $350000 |
|---|---|
| Down payment (%) | 10 % |
| Annual PMI rate (% of loan) | 0.7 % |
- Loan = $350,000 × 90% = $315,000.
- PMI = $315,000 × 0.7% ÷ 12 = $183.75 a month ($2,205 a year).
- You would need to pay down $35,000 of principal to reach 80% LTV.
Result:
| Loan amount | $315,000 |
|---|---|
| Monthly PMI | $183.75 |
| Annual PMI | $2,205 |
| Loan balance at which PMI can be requested (80% LTV) | $280,000 |
| Principal to pay down to reach 80% LTV | $35,000 |
Frequently asked questions
What PMI rate should I use?
Rates commonly range from about 0.3% to 1.5% of the loan per year, depending on credit score, down payment and loan type. Ask your lender for a quote.
When does PMI end?
In the US, the Homeowners Protection Act requires lenders to cancel it automatically when the balance reaches 78% of the original value, and you may request it at 80%. Rules differ elsewhere.
Sources and further reading
- Consumer Financial Protection Bureau: What is private mortgage insurance?
- Wikipedia: Mortgage insurance
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.