PMI Calculator
Estimate your monthly Private Mortgage Insurance cost and see your Loan-to-Value ratio instantly.
PMI drops when LTV ≤ 80%. Auto-cancelled at 78%.
What is Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) protects lenders when a borrower makes a down payment of less than 20% on a home loan. PMI is commonly required on conventional mortgage loans with a high loan-to-value ratio (LTV). Most lenders charge between 0.3% and 1.5% of the loan amount per year.
PMI Calculation Formula
LTV Ratio = Loan Amount ÷ Home Price × 100
Annual PMI = Loan Amount × PMI Rate (%)
Monthly PMI = Annual PMI ÷ 12
How to Calculate PMI on a Mortgage
- Determine the home purchase price.
- Subtract the down payment to find the loan amount.
- Divide the loan amount by the home price to find the LTV ratio.
- If LTV exceeds 80%, multiply the loan amount by the PMI rate.
- Divide the yearly PMI cost by 12 for the monthly amount.
PMI Cost Examples by Loan Size
| Home Price | Down Payment | Loan Amount | PMI Rate | Monthly PMI |
|---|---|---|---|---|
| $300,000 | $30,000 (10%) | $270,000 | 0.5% | $112.50 |
| $400,000 | $40,000 (10%) | $360,000 | 0.7% | $210.00 |
| $500,000 | $50,000 (10%) | $450,000 | 0.8% | $300.00 |
| $600,000 | $90,000 (15%) | $510,000 | 0.6% | $255.00 |
When is PMI Required?
PMI is required when the LTV ratio exceeds 80% — meaning the down payment is less than 20% of the purchase price. The higher the LTV, the higher the PMI rate typically applied.
How to Remove PMI
- Reach 20% equity — request cancellation from your lender.
- Make extra principal payments to hit 80% LTV faster.
- Get a new home appraisal if market values have risen.
- Refinance the mortgage when your equity is sufficient.
- At 78% LTV, lenders are legally required to cancel PMI automatically.
Use our PMI Removal Calculator to find exactly how much you need to pay down to eliminate PMI. If you plan to make a lump-sum payment, our Mortgage Recast Calculator can show how that lowers your monthly payment.