PMI Calculator — Estimate Your Mortgage Insurance Cost

How to Use the PMI Calculator

This PMI calculator estimates your private mortgage insurance cost so you can budget accurately for your true monthly housing payment. Enter your home price, down payment percentage, credit score, loan term, and interest rate. The calculator immediately shows your loan-to-value (LTV) ratio, estimated monthly PMI, estimated annual PMI, and an approximate timeline for when PMI can be automatically removed from your loan.

If your down payment is 20% or more, PMI typically isn't required at all — the calculator will reflect that automatically once your LTV drops to 80% or below.

What Affects Your PMI Cost?

• Loan-to-value ratio (LTV) — the higher your LTV (meaning a smaller down payment relative to home price), the higher your PMI rate. LTV above 95% carries the highest rates, while LTV between 80-85% carries the lowest.
• Credit score — borrowers with scores of 760+ typically qualify for the lowest PMI rates, while scores under 640 face significantly higher rates.
• Loan amount — since PMI is calculated as a percentage of your loan balance, a larger loan means a larger dollar amount of PMI even at the same rate.

How PMI Cost & Removal Are Estimated

This mortgage insurance calculator estimates your PMI rate using a tiered approach based on your loan-to-value ratio and credit score — lower LTV and higher credit scores both reduce your rate. To estimate when PMI can be removed, the calculator builds a full amortization schedule for your loan and finds the first payment period where your remaining balance falls to 78% or less of your original home price — the point at which US lenders are generally required to automatically cancel PMI under the Homeowners Protection Act.

Tips for Managing PMI Cost

• Aim for a 20% down payment whenever possible to avoid PMI entirely.
• Improve your credit score before closing to qualify for a lower PMI rate.
• Make extra principal payments to reach the 78-80% LTV threshold faster and request early PMI removal.
• Ask your lender about a home value reassessment if your property has appreciated significantly — rising home value can also reduce your LTV faster than paying down principal alone.
• Compare loan offers, since some lenders offer lower PMI rates or lender-paid PMI alternatives.