PMI cost clarity
See monthly, annual, and lifetime PMI estimates in one view.
Free PMI Calculator
Estimate your monthly and annual private mortgage insurance (PMI) cost instantly. See how home price, down payment percentage, credit score, and interest rate affect your PMI payment. No sign-up required.
Your PMI Estimate
$450,000
90%
$225
$2,700
$67,500
80%
Disclaimer: This is an educational estimate. Actual PMI varies by lender, loan program, property type, and location. Rates shown assume conventional loans. Contact your lender for exact quotes.
What is PMI?
Private mortgage insurance (PMI) protects lenders when you make a down payment of less than 20%. It's mandatory on conventional loans but can be removed once you reach 20% equity (80% loan-to-value).
How PMI Is Calculated
Annual PMI = Loan Amount × PMI Rate (varies 0.3%–2.0% based on factors below)
Monthly PMI = Annual PMI ÷ 12
Example: $450,000 loan × 0.6% annual rate = $2,700/year ÷ 12 = $225/month
Factors That Affect Your PMI Cost
- Down Payment %: 5% down = higher rate (~1.5–1.9%); 10% down = ~1.0–1.5%; 15% down = ~0.6–1.0%
- Credit Score: Excellent (760+) saves 0.15–0.75%; Poor (<660) adds 0.25–0.75% to rate
- Loan-to-Value (LTV): Higher LTV = higher PMI rate
- Loan Term: 15-year loans typically have lower PMI than 30-year
- Property Type: Single-family homes have lower rates; condos/investment properties higher
- Loan Type: Conventional PMI ≠ FHA mortgage insurance ≠ VA funding fee
When Does PMI Go Away?
Automatic Termination: Federal law requires PMI removal at 78% LTV if on-time payment history is met
Request Cancellation: You can request PMI removal at 80% LTV (20% equity) if you meet lender requirements
Refinance Option: If home appreciates or rates drop, refinance to reach 80% LTV without PMI
How to Lower or Avoid PMI
- Save for 20% down: Eliminates PMI requirement entirely
- Piggyback loan (80/10/10): 80% first mortgage, 10% second loan, 10% down—avoids PMI but adds second payment
- FHA loan: Allows 3.5% down but uses mortgage insurance (MIP) instead—often comparable cost
- VA loan: Veterans avoid PMI entirely with 0% down (must pay VA funding fee)
- Pay down principal faster: Extra payments reach 20% equity sooner, removing PMI faster
- Improve credit before applying: Better credit score lowers PMI rate by 0.5%–1.0%
PMI vs. FHA vs. VA: Which Is Cheaper?
Conventional + PMI: Lower initial rates but PMI must be paid until 78–80% LTV
FHA Mortgage Insurance (MIP): Lower down payment (3.5%), but MIP stays for life of loan (if <10% down) or 11 years (if ≥10% down)
VA Funding Fee (Veterans): No PMI, 0% down available; one-time funding fee (1.25–2.3% of loan) instead of monthly PMI
Use the calculator to compare monthly costs.
Bottom Line
PMI is a significant cost that adds hundreds or thousands per year. Use this free calculator to understand the impact on your affordability and compare scenarios (different down payments, credit improvements, loan terms). If PMI seems too high, consider saving for 20% down, exploring FHA/VA options, or planning to refinance once you reach 20% equity.
Next steps: Use our full mortgage calculator to see total payment including PMI, taxes, insurance, and HOA. Then explore the affordability calculator to see how much house you can truly afford.
Frequently Asked Questions About PMI
Is PMI tax-deductible?
Possibly. Mortgage insurance premiums can be tax-deductible on your primary residence if your modified adjusted gross income (MAGI) is below certain thresholds (phased out starting around $100,000–$109,000 depending on filing status). Rules change annually. See IRS Form 8396 or consult a tax professional. Investment properties generally do not qualify.
Can I remove PMI early by paying extra principal?
Yes. Extra principal payments reduce your loan balance faster, helping you reach 20% equity (80% LTV) sooner. Once there, contact your lender to request PMI removal. You'll need to provide a recent appraisal or refi quote showing 20% equity. Some lenders may apply fees for this request ($75–$300 typical).
What's the difference between PMI, MIP, and VA funding fees?
PMI (Private Mortgage Insurance) is used on conventional loans with <20% down and is removed at 80% LTV. MIP (Mortgage Insurance Premium) is FHA's version and often stays for life of loan unless ≥10% down (then 11 years). VA funding fees are one-time charges for veterans using VA loans (no PMI needed). Use a calculator to compare costs for your specific scenario.
How long does it take to reach 20% equity and remove PMI?
Depends on down payment, home appreciation, and extra payments. On a $400K home with 10% down (need 10% more equity), it typically takes 3–8 years assuming modest appreciation and regular payments. Extra principal payments or faster home appreciation speed this up. Use an amortization calculator to model your payoff timeline.
Should I choose a 15-year or 30-year mortgage to avoid PMI faster?
A 15-year mortgage reaches 20% equity much faster (removing PMI sooner), but monthly payments are 50–60% higher. A 30-year with extra principal payments can reach 20% equity nearly as fast while keeping payments manageable. Compare both scenarios with your numbers to see which fits your budget and timeline.
Disclaimer: This free PMI calculator is for educational purposes only. PMI rates, costs, and terms vary significantly by lender, loan program, credit score, property type, location, and market conditions. This calculator should not be relied upon for final loan decisions. Always contact your lender directly for accurate pre-approval rates, final PMI quotes, and loan terms. We are not financial advisors, and this content does not constitute financial advice. Consult a licensed mortgage professional or financial advisor for guidance specific to your situation.