PMI Calculator

Estimate monthly Private Mortgage Insurance based on LTV.

  • Formula checked
  • Editorially reviewed
  • Free · no signup
  • Updated June 27, 2026

Your details

USD
USD
%

Typically 0.3%–1.5% depending on credit & LTV.

Your estimate

Monthly PMI

$112.50

LTV 90% — PMI required

Annual PMI$1,350.00
LTV ratio90%
Equity needed to cancel PMI$210,000.00

Key takeaway

PMI $112.50/mo until 80% LTV.

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Payment breakdown

The same numbers as above, shown visually so the trade-offs are easy to see.

Payment breakdown
Equity needed to cancel PMI
$210,000.00
Annual PMI
$1,350.00
Monthly PMI
$112.50

What to do next

LTV Ratio90%Average

PMI applies until you reach 78% LTV.

Benchmark: 80% LTV removes PMI; servicers must cancel PMI automatically at 78%.Homeowners Protection Act / Fannie Mae

What this means

You are financing 90% of the property value. Everything above 80% is what triggers mortgage insurance.

Is this good or bad?

It is acceptable, but there is clear room to improve. PMI applies until you reach 78% LTV.

What's the risk?

Moderate risk. You are inside acceptable limits but without much cushion.

What should you do next?

Increase the down payment

Your action plan

  1. 1

    Increase the down payment

    Every dollar down cuts both the loan balance and the PMI premium.

  2. 2

    Request PMI cancellation at 80%

    You can ask in writing once the balance hits 80% — don't wait for the automatic 78% cancellation.

  3. 3

    Check lender-paid vs borrower-paid PMI

    Compare the total cost over the years you expect to hold the loan.

  4. 4

    Model extra principal payments

    An extra payment per year reaches the 78% threshold noticeably sooner.

  5. 5

    Run the Home Affordability Calculator

    Home price you can afford based on income and DTI.

    Open Home Affordability Calculator

Your timeline

Today

  • Print this estimate for your lender conversation.
  • Request a homeowners insurance quote for the address.

This month

  • Get a pre-approval letter, not just a pre-qualification.
  • Ask for a loan estimate from three lenders on the same day.

Next 12 months

  • Build an escrow cushion for the annual tax and insurance increase.
  • Request PMI cancellation once you reach 80% LTV.

Long term

  • Track equity and refinance when rates drop 0.75% or more.
  • Reassess insurance coverage as replacement costs rise.
How you compare to U.S. benchmarks
MetricYour resultTypical U.S. rangeSource
LTV Ratio90%80% or lowerHomeowners Protection Act / Fannie Mae

Compare scenarios

Same inputs, three outlooks — we vary Annual PMI rate up and down so you can see the range before you commit.

Optimistic

$56.25

Monthly PMI

Annual PMI rate: 0.25%

Expected

$112.50

Monthly PMI

Annual PMI rate: 0.5%

Conservative

$168.75

Monthly PMI

Annual PMI rate: 0.75%

Result Intelligence

Understand your result

  • Your monthly pmi is $112.50. Real-estate calculations swing with taxes, insurance and HOA — verify local rates.
  • PMI, closing costs and escrow are the three items borrowers most often forget.

What should you do next?

  1. Down Payment Calculator

    Right down payment can cut PMI and interest.

  2. Closing Costs Calculator

    Budget the 2–5% cash needed at close.

  3. Debt-to-Income Calculator

    Lenders cap most mortgages at 43% DTI.

  4. Rent vs. Buy Calculator

    Verify buying beats renting in your city.

Ways to improve your result

  • Bring 20% down to eliminate PMI on conventional loans.
  • Buy points only if you'll hold the loan past the break-even (usually 5+ years).
  • Compare property-tax rates across neighboring ZIPs — the swing can be huge.

Common U.S. scenarios

Austin first-time buyer

$425k home, 5% down, 6.75% 30-yr — PMI adds ~$180/month until 78% LTV.

New York co-op

Boards routinely require 25%+ down and DTI under 28% — stricter than any bank.

Phoenix investor

DSCR ≥ 1.25 is the standard cutoff for a no-income-doc investment-property loan.

Your result

Monthly PMI
$112.50
Annual PMI
$1,350.00
LTV Ratio
90%
Equity Needed to Cancel PMI
$210,000.00

PMI $112.50/mo until 80% LTV.

What this result assumes

Confidence in a number depends on the assumptions behind it. Here are ours, in full.

Assumptions

  • The rate you entered stays fixed for the whole period.
  • All amounts are shown in USD.
  • Results are rounded for display; internal math uses full precision.

Limitations

Local taxes, HOA dues and insurance vary by county and are estimates unless entered.

Estimates are for education and planning. They are not financial, tax or legal advice.

Formula source

HUD, FHFA and CFPB mortgage and affordability guidance

Version
v1.3
Last reviewed

Where to go next

Next logical calculatorHome Affordability CalculatorHome price you can afford based on income and DTI.Continue

Frequently used together

Tools that answer the other half of the same question.

Quick answer

What it does
PMI Calculator estimate monthly Private Mortgage Insurance based on LTV. It runs entirely in your browser, needs no signup, and uses standard published U.S. formulas.
When to use
Use it while you compare homes, offers, or rental scenarios that hinge on pmi.
Inputs
  • Home price
  • Down payment
  • Annual PMI rate
  • Currency
Outputs
  • Monthly PMI
  • Annual PMI
  • LTV Ratio
  • Equity Needed to Cancel PMI
Takeaway
In one line: enter your home price and down payment and the PMI Calculator returns monthly pmi and annual pmi you can compare before deciding.

Last updated · Last reviewed · 1 min read

How to read your result

PMI Calculator: Your result reflects the housing cost, equity, or ROI implied by the price, rate, and expenses you entered. Use it to compare properties or scenarios side-by-side.

What your result means

  • Break-even years tell you how long you need to stay in a home before buying beats renting.
  • Cash-on-cash return above 8% is generally considered a strong rental deal in most U.S. markets.
  • PMI usually drops off once you reach 20% equity — factor that into long-term costs.

How does the formula work?

LTV = Loan ÷ Price. If LTV > 80%: Monthly PMI = (Loan × Rate) ÷ 12.

How it works

Estimate monthly Private Mortgage Insurance based on LTV.

Step-by-step guide

  1. 1Enter the home price and down payment.
  2. 2Set your mortgage rate, term, taxes, insurance and HOA if applicable.
  3. 3Adjust rental income or growth assumptions where relevant.
  4. 4Compare monthly cost, break-even, and long-term equity.
  5. 5Copy or share results to discuss with your lender or agent.

Example calculation

Example: $300k, 10% down, 0.5% PMI.

Who should use this calculator?

  • First-time home buyers
  • Rental-property investors
  • Homeowners considering refinancing
  • Renters running a rent-vs-buy analysis

When should you use it?

  • Before making an offer on a property
  • When comparing rent vs buy in a new city
  • Before refinancing an existing mortgage
  • When evaluating a rental as an investment

What affects the result?

  • Home price and down payment
  • Mortgage rate, term and PMI
  • Property taxes, insurance and HOA fees
  • Local appreciation and rent-growth assumptions

Compare three scenarios

Three realistic scenarios compared side by side
ScenarioInputsOutcome
Low down payment$400k, 5% down, 7% APR + PMI~$3,050/mo all-in, breaks even in ~8 yrs
Standard 20% down$400k, 20% down, 7% APR~$2,550/mo, no PMI, breaks even in ~5 yrs
Large down payment$400k, 40% down, 7% APR~$1,900/mo, lower risk, breaks even in ~4 yrs

Illustrative examples using U.S. market averages. Enter your own numbers above for a personalized figure.

Decision guide

Should I Use FHA, VA or Conventional?

Loan program choice is driven by service eligibility, credit and down payment.

  1. 1Are you an eligible veteran, active-duty service member or surviving spouse?

    Yes: Use VA. It allows 0% down with no monthly mortgage insurance — normally the cheapest option.

    No: Continue.

  2. 2Is your credit score below 620, or your down payment under 3.5%?

    Yes: FHA is likely your path — 580+ qualifies at 3.5% down.

    No: Continue.

  3. 3Can you put down 20%?

    Yes: Conventional with no PMI is cheapest.

    No: Continue.

  4. 4Is your score 680+ with 3%–10% down?

    Yes: Conventional with cancellable PMI usually beats FHA, whose MIP is permanent above 90% LTV.

    No: Compare FHA MIP against conventional PMI on total 5-year cost.

Bottom line: VA if eligible; FHA for thin credit or minimal down payment; conventional whenever PMI can be cancelled or avoided.

Common mistakes to avoid

  • Underestimating closing costs, insurance, and property taxes.
  • Comparing rent to a mortgage payment only (ignore maintenance & opportunity cost).
  • Assuming linear price growth over decades.

Pro tips

  • Budget 1–2% of the home value per year for maintenance in addition to the mortgage.
  • Don't forget PMI when the down payment is under 20%.
  • Rerun the numbers with a realistic property-tax and insurance figure for your county.

Why use this calculator

  • Full PITI breakdown including taxes, insurance, PMI and HOA.
  • Rent-vs-buy and refinance scenarios calculated with real closing costs.
  • Transparent formulas that match what your lender or agent will show.
  • Works for primary homes, rentals and investment properties.

Limitations to keep in mind

  • Property taxes, insurance and HOA vary widely by county and building.
  • Home appreciation is an assumption — past performance does not guarantee future results.
  • Does not include closing costs, points or seller concessions unless entered.
  • Not an appraisal, mortgage pre-approval or investment recommendation.

Key terms explained

LTV (Loan-to-Value)
The mortgage amount divided by the appraised home value. LTV above 80% typically triggers PMI on conventional loans.
PMI (Private Mortgage Insurance)
A monthly premium required when your down payment is under 20% on a conventional loan. It usually drops off automatically once you reach 22% equity.
Closing costs
One-time fees paid at settlement — typically 2–5% of the purchase price for buyers (appraisal, title, taxes, origination).
Cap rate
Net operating income divided by property value. A common rental-property yield metric — 5–10% is typical in most U.S. markets.
Cash-on-cash return
Annual pre-tax cash flow divided by total cash invested. Measures the actual return on the money you put in.

Before you decide

  • Get a pre-approval letter with the exact rate and lender fees itemized.
  • Budget for closing costs (2–5% of price) and 6 months of housing reserves.
  • Order an independent inspection — never rely on the seller's disclosure alone.
  • Verify property tax, HOA, and insurance quotes with the actual providers, not estimates.

Official Sources & References

The formulas, rates and definitions used by this calculator are aligned with the following official sources:

We use only primary sources — regulators, standards bodies and scheme operators. See our full sourcing policy for details. Sources & References Policy · Calculator Methodology · How We Verify Formulas

Trust & Accuracy

Accuracy tested

Verified against HUD / CFPB affordability and amortisation conventions. Edge cases, formula validation and manual verification completed (last reviewed June 27, 2026).

Government source

Inputs and thresholds follow HUD, FHFA and CFPB mortgage and affordability guidance.

Educational use

This tool is provided for education and planning only. It is not financial, tax, legal or medical advice.

Available for

United States, Canada, United Kingdom, Australia, India, European Union.

Currency support

USD · INR · CAD · AUD · GBP · EUR

Privacy

No information entered into this calculator is stored on our servers unless you explicitly choose to save or share your calculation.

Print, share & save

Use the Save, Share, Copy, PDF, CSV and Print actions under the result panel.

Accessibility

Keyboard navigable, screen-reader friendly labels, responsive on mobile and desktop.

Learn more: How we verify formulas · How we test accuracy · Methodology · Editorial policy

Recent Updates

We continuously review and improve our calculators to keep formulas, assumptions and references accurate.

View change log (4)Show
  1. v1.3

    Added Trust & Accuracy panel and machine-readable change log.

  2. v1.2

    Added Save, Share, PDF, CSV and Print actions to results.

  3. v1.1

    Added global currency selector (USD, INR, CAD, AUD, GBP, EUR).

  4. v1.0

    Initial calculator release with verified formulas and Official Sources.

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Related guides

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What's next?

Your next step

Most people who use this calculator explore these next. Follow the path in order for a complete plan.

  1. 1Home Affordability CalculatorHome price you can afford based on income and DTI.
  2. 2Mortgage CalculatorEstimate monthly mortgage payments, interest and amortization.
  3. 3Closing Costs CalculatorUS home purchase closing costs — 2-5% of price.

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Reviewed by the CreditLoanCalculator editorial team·Last reviewed ·Editorial policy·How we verify formulas
Disclaimer: Results are estimates for informational purposes only and should not be considered financial, medical, legal, or professional advice. Always consult a qualified professional before making decisions.