PMI Calculator β Calculate Your Private Mortgage Insurance
Find out exactly how much PMI will cost you per month and per year. Enter your home price, down payment, and credit score to get an instant PMI estimate. Learn how to avoid or remove PMI.
PMI Calculator
PMI Calculation Results
π‘ How to Save on PMI
- β’ Increase down payment to 20% to eliminate PMI entirely
- β’ Improve credit score to 760+ for the lowest PMI rates
- β’ Choose a 15-year loan for lower PMI rates
- β’ Consider VA loans (no PMI for eligible veterans)
- β’ Request PMI cancellation at 80% LTV
PMI Rates by Credit Score (Conventional Loans)
| Credit Score | PMI Rate Range | Est. Monthly PMI ($300k loan) | Est. Annual Cost |
|---|---|---|---|
| Excellent (760+) | 0.3% β 0.7% | $125/mo | $1,500/yr |
| Good (700-759) | 0.5% β 0.9% | $175/mo | $2,100/yr |
| Fair (660-699) | 0.7% β 1.2% | $238/mo | $2,856/yr |
| Below 660 | 1.0% β 1.8% | $350/mo | $4,200/yr |
* Rates are estimates for a 30-year fixed conventional loan with 10% down. Actual rates vary by lender.
What Is PMI and How Does It Work?
Private Mortgage Insurance (PMI) is insurance that protects mortgage lenders when a home buyer puts down less than 20%. It allows buyers to purchase a home with a smaller down payment (as low as 3%), but adds a monthly cost of 0.3% to 1.5% of the loan amount annually. Unlike homeowners insurance, PMI does not protect the homeowner β it only protects the lender against default.
How Is PMI Calculated on My Mortgage?
PMI is calculated as an annual percentage of your loan amount, divided into monthly payments. Your PMI rate depends on four key factors: your credit score (higher scores = lower rates), your down payment percentage (more down = less risk), your loan term (15-year loans have lower PMI rates than 30-year), and your loan type (conventional vs government). Use the calculator above to estimate your exact PMI cost.
Why Should I Use a PMI Calculator Before Buying a Home?
- Know exactly how much PMI will add to your monthly payment before making an offer
- Compare different down payment scenarios to find the optimal balance between upfront cash and monthly cost
- See how improving your credit score before applying can lower your PMI rate by 0.2-0.5%
- Plan when you can remove PMI by tracking when you'll reach 20% equity in your home
- Compare PMI vs MIP costs to decide between conventional and FHA loan options
PMI Calculator FAQ
What is PMI (Private Mortgage Insurance)?+
PMI is insurance that protects the lender if you stop making payments. It's required on conventional loans when your down payment is less than 20% (LTV > 80%). PMI does NOT protect you β it protects the lender. Typical PMI costs range from 0.3% to 1.5% of your loan amount annually.
How is PMI calculated?+
PMI is calculated as a percentage of your loan amount. The rate depends on your credit score, loan-to-value ratio (LTV), loan term, and loan type. For example, a $300,000 loan with a 0.5% PMI rate would cost $1,500/year or $125/month. Use our calculator above to get an exact estimate.
How can I avoid PMI?+
There are several ways to avoid PMI: (1) Put 20% down payment, (2) Choose a VA loan (no PMI required), (3) Use a piggyback loan (80/10/10 structure), (4) Ask lender for lender-paid PMI (LPMI) with a slightly higher interest rate, (5) Choose a USDA loan (no PMI, but has guarantee fees).
When can I remove PMI?+
For conventional loans, you can request PMI removal when your LTV reaches 80% (based on original value). PMI is automatically terminated when LTV reaches 78%. For FHA loans, MIP lasts the life of the loan if down payment is less than 10%, or 11 years if down payment is 10% or more.
Is PMI tax deductible?+
PMI was tax deductible through 2021 under the Consolidated Appropriations Act. However, this deduction has expired and is NOT currently available for tax years 2022-2026 unless Congress extends it. Check with a tax professional for the latest status.
What's the difference between PMI and MIP?+
PMI (Private Mortgage Insurance) is for conventional loans. MIP (Mortgage Insurance Premium) is for FHA loans. MIP has both an upfront premium (1.75%) and an annual premium (0.55%). MIP is generally more expensive than PMI and lasts longer.