Free PMI Calculator (2026)
Estimate Private Mortgage Insurance costs. Calculate instantly — no signup required. Updated for 2026.
What Is a PMI Calculator?
A PMI calculator estimates the cost of Private Mortgage Insurance — an extra monthly charge lenders require when your down payment is less than 20% of the home’s purchase price. PMI protects the lender (not you) against the risk of default, but it is paid by the borrower. Understanding PMI costs is essential because they can add $75 to $450+ per month to your housing payment, depending on your loan size, down payment, and credit score.
This calculator shows your estimated monthly PMI cost, the total PMI you will pay before reaching 20% equity, and the date when you can request PMI cancellation. It also helps you evaluate whether it makes more financial sense to save for a larger down payment to avoid PMI entirely or to buy now and accept the PMI cost.
How PMI Is Calculated
PMI rates are expressed as an annual percentage of the original loan amount, typically ranging from 0.22% to 2.25% depending on:
- Loan-to-value ratio (LTV): Higher LTV (lower down payment) = higher PMI rate.
- Credit score: Lower scores = higher PMI rates.
- Loan type: Fixed-rate loans generally have lower PMI rates than ARMs.
Annual PMI Cost = Loan Amount × PMI Rate
Monthly PMI Cost = Annual PMI Cost ÷ 12
Step-by-Step Example
- Home Price: $410,000
- Down Payment: 10% ($41,000)
- Loan Amount: $369,000
- Credit Score: 740
- PMI Rate: 0.45% annually (typical for 90% LTV with good credit)
Annual PMI: $369,000 × 0.0045 = $1,660.50
Monthly PMI: $1,660.50 ÷ 12 = $138.38/month
With a 30-year mortgage at 6.5%, you reach 20% equity (LTV drops to 80%) in approximately 8 years and 4 months through regular payments alone.
Total PMI paid before cancellation: $138.38 × 100 months ≈ $13,838
When Can You Cancel PMI?
- Borrower-initiated cancellation: You can request PMI removal once your LTV reaches 80% (20% equity) based on either the original value or a new appraisal.
- Automatic termination: Lenders must automatically cancel PMI when your LTV reaches 78% based on the original amortization schedule.
- Midpoint cancellation: Even if LTV has not reached 78%, PMI must be canceled at the midpoint of the loan term (year 15 of a 30-year loan).
Tips for Getting Accurate Results
- Get your actual PMI rate from your lender: PMI rates vary significantly by insurer, credit score, and LTV. Our calculator uses averages, but your actual rate may differ.
- Consider lender-paid PMI (LPMI): Some lenders offer to pay your PMI in exchange for a slightly higher interest rate — this can be beneficial if you plan to keep the loan long-term.
- Account for home appreciation: If your home value increases, you may reach 20% equity sooner. A new appraisal can help you request early PMI cancellation.
- Compare total PMI cost vs. saving for 20% down: If PMI totals $14,000 over 8 years but waiting to save 20% means 3 more years of renting ($18,000+ in rent), buying now with PMI may be financially smarter.
- FHA MIP is different from conventional PMI: FHA mortgage insurance premiums (MIP) cannot be canceled on loans with less than 10% down — they last the life of the loan. Consider refinancing to a conventional loan once you have 20% equity.
Key Takeaways
- PMI typically costs 0.22-2.25% of the loan amount annually, with most borrowers paying 0.3-0.8%.
- On a $369,000 loan with good credit, expect approximately $138/month in PMI until you reach 20% equity.
- Conventional PMI can be canceled once you achieve 20% equity; FHA MIP may last the life of the loan.
- Total PMI cost before cancellation typically ranges from $8,000-$20,000, which is often less than the cost of continuing to rent while saving for a larger down payment.
Frequently Asked Questions
How much does PMI typically cost per month?
PMI costs vary based on your credit score, loan amount, and down payment percentage. For a borrower with good credit (720+) putting 10% down, PMI typically costs 0.3-0.6% of the loan amount annually. On a $369,000 loan, that translates to roughly $92-$184/month. Borrowers with lower credit scores (below 700) or smaller down payments (3-5%) may pay 0.8-1.5% annually, resulting in $246-$461/month.
Can I avoid PMI without putting 20% down?
Yes, there are several strategies: (1) Lender-paid PMI (LPMI) rolls the cost into a slightly higher interest rate, (2) Piggyback loans use a second mortgage to cover part of the down payment, bringing the primary loan to 80% LTV, (3) VA loans require no PMI regardless of down payment, (4) Some credit unions and community banks offer PMI-free programs for qualifying borrowers. Each alternative has trade-offs that may or may not save you money compared to traditional PMI.
What is the difference between PMI and MIP?
PMI (Private Mortgage Insurance) applies to conventional loans and can be canceled once you reach 20% equity. MIP (Mortgage Insurance Premium) applies to FHA loans and has two components: an upfront premium (1.75% of the loan, usually rolled into the balance) and an annual premium (0.45-1.05% of the loan paid monthly). For FHA loans with less than 10% down, MIP lasts the entire loan term and cannot be canceled — you must refinance into a conventional loan to eliminate it.
How do I request PMI cancellation?
Contact your loan servicer in writing to request PMI cancellation once your LTV reaches 80%. You will typically need to: (1) be current on payments with no late payments in the past 12 months, (2) have no junior liens on the property, and (3) potentially pay for a new appraisal to confirm the home’s current value. If your home has appreciated significantly, a new appraisal could help you reach 20% equity sooner than the original amortization schedule predicts.
Is PMI tax deductible?
The tax deductibility of PMI has been intermittent — Congress has renewed and let expire the PMI deduction multiple times. Check the current tax year rules, as this deduction may or may not be available. When it is available, it typically applies to borrowers with adjusted gross income below $109,000 and phases out above that threshold. Even without the deduction, PMI may still be worthwhile if it enables you to purchase a home sooner and start building equity.