Private Mortgage Insurance (PMI) Calculator
Calculate monthly Private Mortgage Insurance (PMI) costs based on down payment and credit score, and find out when PMI can be cancelled.
What this calculator does
The Private Mortgage Insurance (PMI) Calculator estimates your result instantly from the values you enter, using standard mortgages formulas. Calculate monthly Private Mortgage Insurance (PMI) costs based on down payment and credit score, and find out when PMI can be cancelled. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
About Private Mortgage Insurance (PMI) Calculator
The Private Mortgage Insurance (PMI) Calculator estimates your monthly PMI premium on conventional loans with less than 20% down payment and calculates the date you reach 20% equity to cancel PMI.
Formula & Mathematical Calculation
Annual PMI Cost ($) = Loan Amount × ( Annual PMI Rate % / 100 )
Monthly PMI Cost = Annual PMI Cost / 12
Target Balance for PMI Removal (80% LTV) = Original Purchase Price × 0.80
Calculation Example
$360,000 Loan (10% Down on $400k Home, 720 Credit Score @ 0.55% PMI): Annual PMI = $1,980 → Monthly PMI = $165.00/month. PMI drops automatically when balance reaches $320,000 (~Year 5).
Key Benefits
- Calculates monthly PMI cost based on LTV and credit score tier
- Projects exact year and month PMI can be cancelled at 80% LTV
- Calculates total cumulative PMI paid before cancellation
- Compares conventional PMI vs. FHA mortgage insurance (MIP)
- Helps borrowers budget total monthly housing costs
How to Use this Calculator
-
Enter Home Purchase Price & Down Payment
Input purchase price and down payment amount. -
Select Credit Score Range
Choose credit bracket (higher scores receive lower PMI rates). -
Calculate Monthly PMI
Click Calculate to view monthly PMI premium and cancellation milestone.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- Private Mortgage Insurance (PMI) Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
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