$315,000.00
$183.75
$1,991.01
$2,174.76
123
months
$22,584.47
$315,000.00
$183.75
$1,991.01
$2,174.76
123
months
$22,584.47
The PMI Calculator estimates your Private Mortgage Insurance costs and shows when PMI will be automatically removed. PMI is required by lenders when your down payment is less than 20% of the home purchase price, and it protects the lender — not you — in case of default.
PMI typically costs between 0.2% and 2% of the loan amount annually, depending primarily on your credit score and LTV ratio. A borrower with a 760+ credit score and 15% down might pay just 0.2-0.3%, while a borrower with a 620 score and 5% down could pay 1.5-2.0%. This cost is added to your monthly mortgage payment.
The good news is that PMI is not permanent. Under the Homeowners Protection Act (HPA), your lender must automatically cancel PMI when your mortgage balance reaches 78% of the original purchase price. You can also request cancellation at 80% LTV with a good payment history. Making extra principal payments can accelerate PMI removal.
On a $350,000 home with 10% down, PMI at 0.7% costs approximately $184/month or $2,205/year. If it takes 75 months (about 6.3 years) to reach 80% LTV through regular payments, you will pay approximately $13,800 in total PMI. This is a significant cost that should factor into your down payment decision.
Alternatives to PMI include: making a 20% down payment, using lender-paid PMI (higher rate, no separate premium), piggyback loans (80/10/10 or 80/15/5), or VA/USDA loans (which have their own guarantee fees instead of PMI). This calculator helps you understand the true cost of PMI so you can make an informed decision.
Loan Amount = Home Price × (1 − Down Payment %)
Monthly PMI = Loan Amount × PMI Rate ÷ 12
Months Until Removal: Iteratively calculate when the mortgage balance reaches 80% of the original purchase price through regular amortization.
Total PMI Paid = Monthly PMI × Months Until Removal
Monthly PMI adds to your housing cost and should be factored into affordability. The months until removal shows how long you will carry this extra expense. Total PMI paid reveals the true cost of a lower down payment. If total PMI is high, consider whether a larger down payment (or alternative strategies) makes more financial sense.
Inputs
Results
PMI costs $184/month for ~6.3 years. Total PMI: $13,781.
Inputs
Results
Lower credit and down payment: $238/month PMI for nearly 9 years. Total: $25,413.
Private Mortgage Insurance protects the lender against borrower default on loans with less than 20% down payment. It costs 0.2-2% of the loan annually, paid monthly. It does not protect the borrower.
PMI is based on the original loan amount, your credit score, LTV ratio, and loan type. Higher credit scores and larger down payments result in lower PMI rates. Rates range from 0.2% to 2% annually.
You can request PMI removal at 80% LTV with a good payment history. Lenders must automatically cancel at 78% LTV. You can also reach 80% LTV faster through extra payments or home value appreciation (with a new appraisal).
Yes — make extra principal payments to reach 80% LTV faster, or if your home has appreciated significantly, request a new appraisal to demonstrate that your current LTV is below 80%.
PMI rates range from 0.2% for excellent credit with 15% down, to 2.0% for low credit with 3% down. On a $300,000 loan, this translates to $50-$500 per month.
PMI tax deductibility has been inconsistent — it was deductible through 2021 but the deduction has not been consistently renewed. Check current tax law or consult a tax professional.
Some lenders offer to pay your PMI in exchange for a higher interest rate (typically 0.25-0.5% higher). This eliminates the separate PMI payment but results in a permanently higher rate. It cannot be removed by reaching 20% equity.
FHA MIP is similar but different: it includes an upfront premium (1.75%) and annual premium (0.55%). Unlike PMI, FHA MIP often lasts the entire loan term for loans with less than 10% down.
Yes, an 80/10/10 piggyback loan combines an 80% first mortgage, 10% second mortgage, and 10% down payment, avoiding PMI. The second mortgage typically has a higher rate but may still be cheaper than PMI.
Credit score is the biggest factor in PMI pricing. A 760+ score may get 0.2-0.3% PMI, while a 620 score could face 1.5-2.0%. Improving your score before buying can save thousands in PMI costs.
Roboculator Team
The Roboculator Team explains calculations, planning tools, and practical formulas in clear language for real-life situations.
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