PMI Calculator

Calculate your monthly private mortgage insurance (PMI) cost based on your loan amount, down payment, and credit score. See how much PMI adds to your monthly payment.

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PMI (Private Mortgage Insurance) is typically required when down payment is less than 20%. Better credit scores result in lower PMI rates.

PMI Analysis
💰 Monthly PMI: —
Home Price—
Down Payment—
Down Payment Percentage—
Loan Amount—
Loan-to-Value Ratio (LTV)—
Estimated PMI Rate—
Monthly PMI Payment—
Annual PMI Cost—
Total PMI Until 80% LTV*—
Years to Reach 80% LTV*—
Credit ScoreEst. PMI Rate (95% LTV)Est. PMI Rate (90% LTV)
760+0.30% - 0.50%0.20% - 0.35%
740-7590.40% - 0.70%0.25% - 0.45%
720-7390.60% - 0.90%0.35% - 0.60%
700-7190.80% - 1.20%0.50% - 0.80%
680-6991.00% - 1.50%0.70% - 1.05%
660-6791.30% - 1.80%0.90% - 1.30%
640-6591.60% - 2.20%1.20% - 1.70%

*Estimates vary by lender. Actual rates may differ.

Equity Growth & PMI Removal Schedule
YearLoan BalanceHome Value (3% Appreciation)LTV RatioPMI Status

Enter details to view PMI removal schedule.

PMI typically cancels automatically when LTV reaches 78% or can be requested at 80%.

Powered by Techraxy | PMI Calculator

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Hasnain Khan

Co-Founder, Techraxy

Hasnain Khan is a digital tools developer and Co-Founder of Techraxy, a platform dedicated to building modern web-based calculators and utility tools. He focuses on tool optimization, website performance, and creating accessible user experiences across categories like automotive, finance, construction, and everyday utilities.

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Introduction to PMI Calculator

Private mortgage insurance, or PMI, is a monthly fee added to your mortgage payment when your down payment is less than 20% of the home’s purchase price. PMI protects the lender, not you, in case you default on your loan. This PMI Calculator helps you estimate exactly how much PMI will cost based on your loan amount, down payment, credit score, and loan type. Understanding PMI is crucial for budgeting because it can add 50 to 300 or more to your monthly payment. The good news is PMI is temporary. Once your loan-to-value ratio reaches 78% to 80%, you can request cancellation. This calculator shows you your estimated PMI cost and how long you may need to pay it. Toolraxy built this tool to help homebuyers make informed decisions about down payments and monthly housing costs.

How to Use This PMI Calculator 

            1. Enter the Home Price (purchase price of the property)

            2. Enter your Down Payment (dollar amount or percentage)

            3. Select your Credit Score Range (excellent, good, fair, or poor)

            4. Choose your Loan Type (conventional, FHA, or USDA)

            5. Select the Loan Term (15 or 30 years)

            6. Click Calculate to see your monthly PMI cost

            7. Adjust inputs to see how larger down payments reduce or eliminate PMI

Formula Section

Loan amount:

Loan Amount = Home Price – Down Payment

Loan-to-value ratio (LTV):

 
LTV = (Loan Amount ÷ Home Price) × 100

Annual PMI rate (varies by credit score and LTV):

  • Excellent credit (740+): 0.2% – 0.5% of loan amount

  • Good credit (680-739): 0.3% – 0.7% of loan amount

  • Fair credit (620-679): 0.5% – 1.0% of loan amount

  • Poor credit (Below 620): 1.0% – 2.0% of loan amount

Monthly PMI payment:

Monthly PMI = (Loan Amount × Annual PMI Rate) ÷ 12

FHA MMI formula (different from conventional PMI):

Upfront MIP = Loan Amount × 1.75%
Monthly MMI = Loan Amount × (0.50% ÷ 12) to (0.85% ÷ 12)

Where:

  • PMI = Private Mortgage Insurance (conventional loans)

  • LTV = Loan-to-value ratio

  • MIP = Mortgage Insurance Premium (FHA loans)

  • MMI = Mutual Mortgage Insurance (FHA term)

Real-Life Examples Section

Example scenario:

  • Home price: $350,000

  • Down payment: $35,000 (10%)

  • Loan amount: $315,000

  • Credit score: 720 (Good)

  • Loan type: Conventional

  • Loan term: 30 years

Results:

  • Down payment percentage: 10%

  • Loan-to-value ratio (LTV): 90%

  • Annual PMI rate: 0.5%

  • Monthly PMI cost: $131

  • Annual PMI cost: $1,575

  • PMI cancellation eligibility: When LTV reaches 80% (approximately 8-9 years)

Clear takeaway: With 10% down on a 350,000 home, PMI adds 131 to your monthly payment. Saving an additional 35,000 to reach 20131 monthly cost entirely. Use this calculator to decide if a larger down payment is worth the monthly savings.

 

FAQs

1. What is PMI and why do I need it?
PMI stands for Private Mortgage Insurance. Lenders require it when your down payment is less than 20% of the home’s purchase price. PMI protects the lender if you default on your loan. It does not protect you or provide any benefit to the borrower.

2. How is PMI calculated?
PMI is calculated based on your loan amount, loan-to-value ratio (LTV), credit score, and loan type. The annual PMI rate typically ranges from 0.2% to 2% of the loan amount. Your monthly PMI is this annual amount divided by 12.

3. How much does PMI cost per month?
For a conventional loan, PMI typically costs 30to150 per month for every 100,000borrowed.Ona300,000 loan with 10% down and good credit, expect 100to150 per month. FHA mortgage insurance is often higher.

4. Does FHA have PMI?
FHA loans do not have PMI. They have MIP (Mortgage Insurance Premium). FHA requires an upfront MIP of 1.75% of the loan amount plus monthly MIP of 0.50% to 0.85% annually. Unlike conventional PMI, FHA MIP often lasts the entire loan term.

5. When can I cancel PMI?
For conventional loans, you can request PMI cancellation when your loan-to-value ratio reaches 80%. Lenders must automatically terminate PMI when LTV reaches 78% based on the original amortization schedule. FHA loans have different rules.

6. How does my credit score affect PMI?
Higher credit scores qualify for lower PMI rates. A borrower with a 760+ credit score might pay 0.2% of the loan amount annually, while a borrower with a 650 credit score might pay 0.7% to 1.0% for the same loan.

7. Does PMI go away automatically?
For conventional loans, PMI automatically terminates when your LTV reaches 78% based on the original amortization schedule or when you reach the midpoint of the loan term. You can request early cancellation at 80% LTV.

8. Is PMI tax deductible?
PMI was tax deductible for some borrowers in the past, but this deduction expired for most taxpayers. Check current IRS guidelines or consult a tax professional for the most up-to-date information.

Disclaimer

This PMI Calculator is provided for educational and planning purposes only. Results are based on standard PMI rate tables and the numbers you enter. Actual PMI rates vary by lender, exact credit score, loan program, private mortgage insurer, and current market conditions. This tool does not constitute financial or mortgage advice. Consult a licensed mortgage lender for an exact PMI quote before making home purchase decisions. Toolraxy is not responsible for any actions taken based on these calculations.

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