HomeAffordability

PMI Calculator

Estimate your monthly private mortgage insurance cost and see how much equity you need to have it removed.

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Typical range is 0.3%–1.5% of the loan amount per year, based on credit score and down payment.

Estimated monthly PMI

$225

Your down payment is 10.0%

Estimated annual PMI

$2,700

Principal to pay off for 20% equity

$40,000

Understanding PMI

If your down payment is below 20% on a conventional loan, your lender will typically require private mortgage insurance (PMI) as a condition of the loan. PMI protects the lender against loss if you default — it does not protect you as the borrower. This calculator estimates your monthly PMI cost based on your loan amount and an annual PMI rate you can adjust.

A worked example

On a $340,000 loan (a $360,000 home with 5.6% down) at a 0.75% annual PMI rate, PMI costs about $213/month — $340,000 × 0.0075 ÷ 12. At a stronger 0.4% rate, more typical for borrowers with excellent credit, the same loan costs about $113/month. That gap shows why credit score matters even for buyers who've already decided to put down less than 20%: it changes your PMI rate, not just your interest rate.

What determines your PMI rate

  • Credit score: the biggest driver — higher scores get meaningfully lower rates.
  • Loan-to-value ratio: a 15% down payment gets a lower rate than a 3% down payment.
  • Loan type: fixed-rate vs. adjustable-rate loans can price PMI differently.
  • PMI structure: borrower-paid monthly PMI is most common, but single-premium and lender-paid PMI (folded into the rate) are alternatives worth asking about.

When PMI goes away

PMI isn't permanent. As you pay down your loan (or your home appreciates), your equity grows, and once you reach 20–22% equity, PMI can typically be cancelled or is automatically removed under federal law. This calculator shows how much principal you still need to pay off to hit that 20% equity threshold at today's home value.

Deciding how large a down payment to make in the first place? The Down Payment Calculator compares PMI across different down payment levels.

Frequently asked questions

What is PMI and why do I have to pay it?+

Private mortgage insurance (PMI) protects the lender — not you — in case you default on a conventional loan with less than 20% down. It's typically added to your monthly payment until you reach 20% equity in your home.

How much does PMI typically cost?+

PMI usually ranges from about 0.3% to 1.5% of your loan amount per year, depending on your credit score, down payment size, and loan type. A higher credit score and larger down payment generally result in a lower PMI rate.

How do I get rid of PMI?+

Under federal law, lenders must automatically cancel PMI on most conventional loans once your loan balance reaches 78% of the home's original value. You can also request cancellation once you reach 80% equity, either through regular payments, extra principal payments, or a home value increase (which may require an appraisal).

Does FHA or VA mortgage insurance work the same way?+

No. FHA loans use mortgage insurance premiums (MIP), which often last for the life of the loan regardless of equity. VA loans don't require monthly mortgage insurance at all, but typically charge a one-time funding fee instead. See our FHA and VA Affordability Calculators for details.

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Mortgage

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Monthly Payment

Break down your full monthly housing payment: principal, interest, taxes, insurance, PMI, and HOA.

Down Payment

Figure out how much cash you need upfront and how your down payment size changes your monthly payment.

This calculator provides estimates for general educational purposes only and is not financial, legal, or lending advice. Actual loan terms, taxes, insurance, and qualification requirements vary by lender, location, and individual circumstances. See our full disclaimer.