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PMI Calculator

Private mortgage insurance is commonly required on conventional loans when the loan is more than 80% of the home's value. Real premiums come from the insurer, so the rate here is an assumption you control.

Home and down payment

The loan

Loan term

Rest of the housing payment

Used only to show a payment with and without PMI.

Estimated monthly PMI

$180/mo

That is about $2,160 a year at an assumed 0.60% annual rate. Real premiums are set by the mortgage insurer and lender.

Loan-to-value picture

Down payment
$40,000
Loan amount
$360,000
Loan-to-value (LTV)
90.0%
Annual PMI
$2,160
Principal to reach 80% LTV
$40,000
Assumed PMI rate
0.60%

Paying down roughly $40,000 of principal — or the home gaining enough value — would bring the loan to 80% of value, the point where conventional PMI is commonly eligible to be removed.

Monthly payment with and without PMI

Principal, interest, taxes, insurance and HOA dues, then PMI on top.

  • Payment without PMI

    $2,792/mo

  • Estimated PMI

    $180/mo

Payment with PMI

$2,972/mo

Why quoted PMI rates differ

Credit profile is one of the largest factors in mortgage-insurance pricing. These are general patterns, not quotes.

  • 760+Typically the lowest quoted PMI rates.
  • 720–759Rates generally rise as scores fall.
  • 680–719Mid-range pricing is common here.
  • 640–679Rates are usually noticeably higher.
  • Below 640Pricing varies most widely in this range.

Save this scenario

Want to understand this number?

How this calculator works

The loan amount is the home price minus your down payment. Dividing the loan by the price gives the loan-to-value ratio. When that ratio is above 80%, the calculator multiplies the loan amount by the annual PMI rate you entered and divides by twelve to estimate a monthly premium.

The with-and-without comparison uses the same principal, interest, taxes, insurance and HOA figures in both rows, so the only difference between them is the mortgage insurance.

What it can't tell you

  • PMI pricing is set by mortgage insurers and depends on credit score, loan-to-value, loan type, term, occupancy and coverage level — this tool uses a single flat rate you choose.
  • Some loans use lender-paid mortgage insurance or a single upfront premium instead of a monthly premium.
  • FHA loans carry a different structure entirely, including an upfront premium and annual premiums that may last the life of the loan.
  • Removal of PMI depends on your loan, payment history and in some cases a new appraisal; reaching 80% LTV does not remove it automatically.

Common questions