PMI Calculator

Free PMI calculator — estimate your monthly PMI payment, total PMI cost, and when you can request removal based on LTV ratio. No lender bias.

Monthly PMI
$0
PMI Rate
0%
PMI Drops Off
--
Total PMI Cost
$0
$
$100K$2M
% ($40,000)
0%25%
%
1%15%

FICO score affects your PMI rate — higher scores get lower rates

Loan-to-Value Breakdown

Loan Amount $0
LTV Ratio 0%
78% LTV Threshold (PMI drops off) $0
0% 78% 100%

PMI Payment Timeline

Year Balance LTV PMI Status

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Formula Used

Monthly PMI = Loan Amount x PMI Rate / 12 PMI Rate by FICO Score: 760+: 0.25-0.40% 740-759: 0.40-0.55% 720-739: 0.55-0.70% 700-719: 0.70-0.85% 680-699: 0.85-1.05% 660-679: 1.05-1.30% PMI Removal: Automatic: When LTV reaches 78% (by law) Request: When LTV reaches 80% (on-time payments required) Appraisal: If home value increased, LTV may reach 80% sooner

How This PMI Calculator Works

Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20%. This calculator helps you understand exactly how much PMI will cost you and when it will automatically drop off.

What Is PMI?

PMI protects the lender — not you — in case you default on your mortgage. It's typically required when your loan-to-value (LTV) ratio exceeds 80% (i.e., your down payment is less than 20%). The cost depends on your loan amount, FICO credit score, and down payment percentage.

When Does PMI Drop Off?

  • Automatic termination: Your lender must automatically cancel PMI when your loan balance reaches 78% of the original home value, provided you're current on payments
  • Request cancellation: You can request PMI removal when your LTV reaches 80% through regular payments or appreciation
  • Midpoint of loan term: For high-risk loans, PMI must be cancelled at the midpoint of the loan term regardless of LTV

How FICO Scores Affect PMI Rates

Your credit score has a significant impact on your PMI rate. Borrowers with excellent credit (760+) may pay as little as 0.55% of the loan balance annually, while those with lower scores (620-639) could pay 1.50% or more — nearly triple the cost.

Ways to Avoid or Reduce PMI

  • Put down 20%: No PMI required at all
  • Piggyback loan: Use a second mortgage (80-10-10) to avoid PMI
  • Lender-paid PMI: Accept a higher interest rate in exchange for no monthly PMI
  • VA loans: No PMI required for eligible veterans
  • Improve your credit score: Even a 20-point increase can lower your PMI rate

Frequently Asked Questions

What is PMI and when do I have to pay it?
PMI (Private Mortgage Insurance) is required by lenders when your down payment is less than 20% of the home's purchase price. It protects the lender — not you — if you default on the loan. PMI typically costs 0.5% to 1.5% of the original loan amount per year, paid monthly. For a $300,000 loan with 10% down, expect roughly $125-$250/month in PMI premiums. Use CalcDeck's free PMI calculator to calculate your exact PMI cost.
How can I get rid of PMI on my mortgage?
You can eliminate PMI by reaching 20% equity in your home — either through paying down your loan balance, home value appreciation, or a combination of both. Once you reach 80% loan-to-value (LTV), you can request PMI cancellation from your lender. At 78% LTV, the lender must automatically cancel PMI by law (for conventional loans). You can also refinance to a loan without PMI if you now have 20%+ equity. FHA loans use MIP, which has different rules.
How much does PMI cost per month?
PMI costs vary based on your loan-to-value ratio, credit score, and loan type. Typical annual PMI rates range from 0.5-1.5% of the original loan amount. For a $280,000 loan with 5% down (95% LTV) and good credit, PMI might cost $1,400-$2,800 per year or $117-$233 per month. Lower credit scores, higher LTVs, and adjustable-rate mortgages command higher PMI rates. Use CalcDeck's PMI calculator for an exact estimate based on your scenario.
What's the difference between PMI and MIP?
PMI (Private Mortgage Insurance) applies to conventional loans. MIP (Mortgage Insurance Premium) applies to FHA loans. Key differences: FHA MIP includes an upfront premium (1.75% of the loan) plus an annual premium (0.50-0.55% for most loans). FHA MIP on loans with less than 10% down lasts for the life of the loan — it never cancels automatically. PMI on conventional loans can be canceled at 80% LTV. This makes conventional loans with PMI often cheaper than FHA loans long-term.
Is it better to pay PMI or wait to save 20% down?
It depends on your market. If home prices are rising faster than you can save, paying PMI now may be smarter than waiting — you build equity through appreciation while the PMI is temporary. If prices are flat and you can save the 20% within a year or two, waiting avoids the PMI cost entirely. Run the numbers: compare a year or two of PMI payments vs. how much more the same house might cost if you wait. CalcDeck's PMI calculator helps you quantify the trade-off.