PMI Calculator (Private Mortgage Insurance)

Calculate your monthly PMI payment and find out when PMI will be eliminated. See how extra payments accelerate PMI removal.

🏠 Mortgage📐 PMI = Loan Amount x PMI Rate / 12
Original home price ($)
Original loan amount ($)
PMI annual rate (%)
Current estimated home value ($)
Please enter valid values.

Formula & Reference

VariableFormulaUnits
PMI Calculator (Private Mortgage Insurance)PMI = Loan Amount x PMI Rate / 12$/month

Step-by-Step Examples

Example 1
Low Down Payment

$300K home, $285K loan (5% down), 0.85% PMI, $310K current value.

  • PMI = $285K x 0.0085/12 = $201.88/mo
  • Current LTV = $285K/$310K = 91.9%
  • Need to reach $248K loan balance (80% of $310K)
✓ $202/month PMI
Example 2
FHA Upfront MIP

$250K FHA loan, 1.75% upfront MIP + 0.55% annual.

  • Upfront = $250K x 1.75% = $4,375 (added to loan)
  • Monthly MIP = $254.375K x 0.0055/12 = $116.65/mo
  • FHA MIP lasts life of loan (post-2013 with <10% down)
✓ $117/month FHA MIP
Example 3
High PMI Rate

$400K loan, 1.5% PMI (low credit score buyer).

  • PMI = $400K x 0.015/12 = $500/mo
  • $6,000/year - strong incentive to reach 20% equity fast
✓ $500/month PMI (high rate)

Real-World Applications

🏠
Home Buyers
Calculate your PMI cost and plan for its removal to save money.
🏦
Mortgage Lenders
Explain PMI costs and removal timeline to borrowers.
💰
Financial Planners
Help clients decide whether to put extra cash into eliminating PMI.
📊
Real Estate Agents
Educate buyers about PMI costs when discussing down payment options.

Common Mistakes to Avoid

⚠️
Thinking PMI removes automatically

PMI automatically cancels at 78% LTV (Homeowners Protection Act), but you can REQUEST removal at 80% LTV with a good payment history. The key difference: you may overpay 1-2 years of PMI if you wait for automatic cancellation.

⚠️
Not knowing FHA MIP is different from PMI

FHA loans charge Mortgage Insurance Premium (MIP), not PMI. For loans with less than 10% down originated after 2013, FHA MIP remains for the life of the loan - it does NOT cancel at 80% LTV. Refinancing to conventional eliminates this.

⚠️
Missing the appreciation opportunity

If your home has appreciated significantly, you may already be at or below 80% LTV based on current value (not original price). Request a formal appraisal and ask your lender to remove PMI based on current value.

Frequently Asked Questions

When does PMI go away? ▾
Automatic cancellation at 78% LTV (based on original schedule). You can REQUEST cancellation at 80% LTV with a good payment history. If home has appreciated, request a new appraisal to have PMI removed based on current LTV.
How do I avoid PMI? ▾
20% down payment. Piggyback loan (80-10-10): first mortgage 80%, second mortgage 10%, 10% down - avoids PMI but second mortgage has higher rate. Some lenders offer no-PMI loans with slightly higher interest rates.
Is PMI tax deductible? ▾
PMI deductibility was extended through 2021 and has periodically been renewed by Congress. Check current IRS guidance; it's not always deductible and phases out at higher incomes.
How much does PMI cost? ▾
0.5-1.5% of the loan amount annually, depending on down payment, credit score, and loan type. Better credit = lower PMI rate. 5% down with 760+ credit: about 0.5-0.8%. 5% down with 680 credit: 1.0-1.5%.
Can I refinance to eliminate PMI? ▾
Yes, especially if your home has appreciated. Refinancing to conventional when you have 20%+ equity eliminates PMI. Consider closing costs (2-3%) vs. monthly PMI savings to determine if refinancing makes financial sense.

Related Calculators

🏠 Mortgage Payment🏠 Affordability🏠 Refinance🏠 Closing Costs🏠 Property Tax