Mortgage Insurance Calculator
A home purchase with less than 20% down triggers private mortgage insurance (PMI) – an extra monthly cost that many buyers overlook. Use our mortgage insurance calculator to see exactly how much PMI will add to your payment before you commit to a loan.
When Do You Need Mortgage Insurance?
A conventional home loan with a down payment below 20% almost always requires mortgage insurance. The measure protects the lender if you stop making payments, not you.
The deciding factor is the loan-to-value ratio (LTV): the loan amount divided by the home’s appraised value. Whenever LTV exceeds 80%, PMI becomes a mandatory line item in your monthly housing expense. Government-backed FHA loans carry their own mortgage insurance premium (MIP), while VA loans for eligible veterans charge no mortgage insurance at all.
How Do You Calculate PMI?
Your monthly PMI depends on three numbers: your loan amount, the annual mortgage insurance rate, and how the premium is split across the year.
Annual PMI formula
Annual PMI = loan amount × annual PMI rate
Monthly PMI formula
Monthly PMI = (loan amount × annual PMI rate) / 12
For example, a $250,000 loan with a 0.65% annual PMI rate results in $1,625 per year, or about $135 extra per month.
The calculator below does this math for you, factoring in standard rate cards that lenders and private insurers use to set the exact percentage. Just enter your home price, down payment, credit tier, and loan term.
The results show your estimated monthly PMI, the total cost of insurance until automatic cancellation, and the date when PMI is scheduled to drop off under the Homeowners Protection Act.
This calculator provides estimates for informational purposes only and is not a substitute for a lender’s binding quote. Actual rates depend on the insurer, your full credit profile, and current market conditions.
What Factors Affect PMI Rates?
Several variables push your PMI rate higher or lower. Insurers weigh them through standard grids.
Loan-to-value ratio (LTV)
A larger loan relative to the home’s value increases risk – and the rate. LTV of 95% carries a much higher premium than LTV of 85%, even with the same credit score.
Credit score
Borrowers with scores above 760 receive the lowest rates. Falling into the 680–699 range can nearly double the annual percentage.
Loan term
Longer terms (30 years) often carry slightly higher PMI rates than 15-year loans because the principal pays down more slowly.
Property type & occupancy
A single-family primary residence qualifies for better pricing than a condominium, multi-unit property, or investment home.
The table below illustrates typical annual PMI rate ranges based on LTV and credit score for a 30-year fixed mortgage as of 2026.
| LTV | Credit score 760+ | Credit score 700–759 | Credit score 680–699 |
|---|---|---|---|
| 95% | 0.45% – 0.55% | 0.55% – 0.70% | 0.90% – 1.10% |
| 90% | 0.30% – 0.40% | 0.40% – 0.55% | 0.65% – 0.85% |
| 85% | 0.19% – 0.25% | 0.25% – 0.35% | 0.40% – 0.55% |
Rates are annual percentages of the original loan amount. Actual premiums can vary by insurer and are often quoted as a single blended rate.
Ways to Avoid Paying PMI
Not every low-down-payment loan must carry mortgage insurance. Several paths let you bypass PMI entirely.
Make a 20% down payment
The simplest route: put enough cash down to keep LTV at or below 80%.
Piggyback loan (80-10-10)
Combine a first mortgage for 80% of the purchase price with a second loan (often a home equity line) for 10%, and provide a 10% down payment. This structure avoids PMI but adds the second loan’s interest.
Lender-paid PMI
The lender covers the mortgage insurance premium in exchange for a higher interest rate on your main loan. This reduces the initial monthly outlay but increases total interest over time.
Qualify for a VA or USDA loan
Eligible veterans and buyers in designated rural areas can secure zero-down loans with no ongoing mortgage insurance requirement. VA loans do carry a one-time funding fee.
How to Get Rid of PMI
Once you have PMI, federal law and most lender agreements offer clear paths to eliminate it.
Automatic termination
Under the Homeowners Protection Act, your servicer must automatically cancel PMI when your loan balance hits 78% of the original property value – provided you are current on payments. This is based on the original amortization schedule, not on market appreciation.
Borrower-initiated cancellation
You can request cancellation once the balance falls to 80% of the current home value. Most lenders require a two-year seasoning period, a clean payment history, and a new appraisal at your expense. If home prices have risen sharply, this can happen years earlier than automatic termination.
Refinancing
Refinancing your mortgage to a new loan with an LTV of 80% or less eliminates PMI. This can make sense if interest rates have dropped and your home value has increased.
Always confirm your specific deadline and conditions with your servicer. Rules about removal for investment properties or loans with a second lien can be stricter.