PMI Calculator
Private mortgage insurance estimate
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Working out private mortgage insurance estimate is easier with PMI Calculator, which answers as you type. Enter Home Price ($), Down Payment (%) and Annual PMI Rate (%) in any order — PMI recalculates on every edit. PMI displays each intermediate figure as well. That makes PMI handy for quick estimates anywhere. PMI runs in your browser. Finance data stays in the tab. PMI sits in the Finance section next to related tools and pmi calculator private mortgage insurance monthly. PMI is designed for real people. Labels stay plain. Start with PMI; the first number takes seconds.
What you are being charged
Private mortgage insurance is priced on the loan, not the house. With the defaults — $300,000 price, 10% down, 0.5% annual PMI — the loan is $270,000, the annual premium is $1,350, and the monthly charge is $112.50.
It exists because a loan above 80% loan-to-value is riskier for the lender, so a borrower below 20% equity pays for that risk monthly. At 10% down the LTV here is 90%.
How PMI is calculated
Private mortgage insurance (PMI) is charged as an annual percentage of your original loan amount, then split into 12 monthly payments:
Monthly PMI = Loan amount × Annual PMI rate ÷ 12
On a $400,000 loan at a 0.5% annual rate: $400,000 × 0.005 ÷ 12 = $166.67 per month.
| Annual PMI rate | Monthly PMI on $300,000 | Monthly PMI on $400,000 |
|---|---|---|
| 0.30% | $75.00 | $100.00 |
| 0.50% | $125.00 | $166.67 |
| 0.75% | $187.50 | $250.00 |
| 1.00% | $250.00 | $333.33 |
| 1.50% | $375.00 | $500.00 |
Which rate applies where you are
PMI is priced by the insurer rather than by one national table, so the annual rate you type in is a lender-side number: insurers file rates state by state and price within them on credit score and loan-to-value, which is why two quotes for the same loan can come out different. Countries also name and place the charge differently — the USA calls it PMI, Canada covers high-ratio mortgages through CMHC default insurance whose premium is added to the loan balance, and UK lenders usually build the cost of high loan-to-value lending into the interest rate rather than billing it monthly. If your loan is FHA-insured there is no state pricing at all — the mortgage insurance rate is set nationally and does not vary by state, so the FHA loan calculator is the right page instead of this one.
Most conventional loans fall in the 0.3%–1.5% band; smaller down payments and lower credit scores sit at the top of it. PMI is normally removable once you reach 80% loan-to-value — check that with our loan-to-value calculator, see the whole payment in the loan EMI calculator and read the mortgage guides.
The three lines of arithmetic
Down payment = price × down% = $300,000 × 10% = $30,000.
Loan = price − down payment = $270,000.
LTV = loan ÷ price = 90%.
Annual PMI = loan × rate = $270,000 × 0.5% = $1,350. Monthly = $1,350 ÷ 12 = $112.50.
Why the rate is applied to the loan
The insurer is covering the lender's exposure, and that exposure is the loan balance. Applying the rate to the house price would overstate the premium by the down payment: at 10% down, pricing $300,000 at 0.5% gives $125 a month instead of $112.50. The difference looks small until you multiply it across the years before PMI falls away.
When PMI stops
Two thresholds matter in the US. You can usually request removal at 80% LTV, based on the original value and an appraisal the servicer accepts. It must be terminated automatically at 78% LTV on the original amortisation schedule. On a 30-year loan at 6.5%, a borrower starting at 90% LTV typically reaches 78% somewhere between year seven and year nine of scheduled payments — earlier with extra principal.
That means the real cost is not $112.50 a month but $112.50 × the number of months before removal. At eight years that is about $10,800, which is why paying down to 80% early is often the best return available on the money.
Getting the number wrong
- Entering the down payment in dollars. The field is a percentage; $30,000 entered as 30,000% returns a negative loan.
- Using the quoting rate for a different LTV band. PMI rates step up sharply above 95% LTV and for lower credit scores — 0.5% is a mid-band figure, not a universal one.
- Forgetting that lender-paid PMI is not free. It is a higher interest rate for the life of the loan, which usually costs more than borrower-paid PMI that ends.
- Assuming an appraisal always grants removal. Falling prices can leave a borrower at 78% on the original schedule but above 80% on a new valuation.
What this does not include
Taxes, homeowners insurance, HOA dues and the upfront premium some lenders charge at closing (often 1.75% of the loan for FHA loans, which is a different product). This page prices conventional borrower-paid PMI only.
Frequently Asked Questions
Is PMI calculated on the home price or the loan amount?
On the loan amount. At $300,000 with 10% down the loan is $270,000, so a 0.5% rate gives $1,350 a year and $112.50 a month — not the $125 you get by pricing the full price.
When does PMI automatically end?
At 78% loan-to-value based on the original value and the original amortisation schedule. You can usually ask for removal earlier at 80%, but that request can require an appraisal and a clean payment history.
Does a bigger down payment cut the monthly PMI?
Yes, twice over: it shrinks the loan the rate is applied to, and it can move you into a lower LTV band with a lower rate. Going from 10% to 15% down typically cuts the premium by a third or more.
Why is the yearly premium $1,350 when the monthly is $112.50?
Because they are the same number at different periods: 112.50 × 12 = 1,350. The page shows both so a lender quote arrived at either way can be checked against the same arithmetic.
Does PMI protect me if I default?
No. It protects the lender against loss; you get no payout. Its value to you is indirect — it is what allowed the loan at 90% LTV in the first place, and it stops once you have enough equity.
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