Private Mortgage Insurance Calculator
See your exact monthly PMI cost, when it drops off, and how much you'll pay in total — using 2026 rate tables from MGIC, Radian, and Enact.
Total yearly amount; we'll divide by 12
Used to calculate debt-to-income ratio (optional)
What Is Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is an insurance policy required by conventional mortgage lenders when a homebuyer makes a down payment of less than 20% of the home's purchase price. Despite its name, PMI protects the lender — not you — against financial loss if you default on the loan. If you stop making payments and the lender forecloses, PMI compensates the lender for the gap between the outstanding loan balance and what they recover from selling the property.
From a borrower's perspective, PMI is simply an additional monthly cost that makes homeownership possible without a full 20% down payment. Without PMI, lenders would take on far too much risk with high-LTV loans and either refuse to issue them or charge prohibitively high interest rates. PMI unlocks homeownership for millions of first-time buyers who haven't yet saved a full 20% — it's the price of buying sooner rather than waiting years to accumulate a larger down payment.
PMI vs. MIP: What's the Difference?
PMI applies only to conventional loans. Government-backed FHA loans use their own version called MIP (Mortgage Insurance Premium), which works very differently:
- Conventional PMI: Rate set by private insurers (MGIC, Radian, Enact), varies by LTV and credit score, and is fully cancellable once you reach 20% equity. No upfront premium.
- FHA MIP: A fixed annual premium (0.50%–0.55% in 2026) plus a mandatory 1.75% upfront premium rolled into your loan balance. For loans with less than 10% down, MIP lasts the entire life of the loan — it never cancels automatically.
- VA Funding Fee: VA loans (for eligible veterans and service members) have no PMI or MIP at all. Instead, a one-time funding fee of 1.25%–3.3% applies. For most eligible borrowers, this is far cheaper than years of PMI.
For borrowers with credit scores above 720 and moderate LTVs, conventional PMI is usually cheaper over the long run — especially since it eventually cancels. Our calculator lets you switch between loan types to compare the real cost difference.
How PMI Rates Are Determined in 2026
PMI rates are set by private mortgage insurance companies — primarily MGIC, Radian, Enact (formerly Genworth), Arch MI, and National MI. Each lender chooses which insurer to use, and rates vary slightly between providers. The rate you pay is based on two primary factors: your loan-to-value (LTV) ratio and your credit score tier.
| LTV Range | Credit 760+ | Credit 720–739 | Credit 680–699 | Credit Below 660 |
|---|---|---|---|---|
| 80.01%–85% | 0.19% | 0.26% | 0.38% | 0.58% |
| 85.01%–90% | 0.37% | 0.50% | 0.68% | 0.97% |
| 90.01%–95% | 0.52% | 0.69% | 0.95% | 1.35% |
| 95.01%–97% | 0.68% | 0.90% | 1.22% | 1.71% |
Rates above are annual percentages applied to your outstanding loan balance, then divided by 12 for your monthly premium. This means your PMI cost gradually decreases over time as your loan balance falls — though the reduction is modest month-to-month. Highlighted cells show where high LTV combined with lower credit scores creates significantly elevated PMI costs.
How Monthly PMI Is Calculated
The formula is straightforward: Monthly PMI = (Outstanding Loan Balance × Annual PMI Rate) ÷ 12. For example, a $360,000 loan balance with a 0.52% annual PMI rate works out to $360,000 × 0.0052 ÷ 12 = $156/month. Our calculator applies this formula to each month of your amortization schedule, showing you the exact month your balance crosses the 80% LTV threshold and PMI drops off.
One thing many borrowers don't realize: you can sometimes request that your lender check multiple PMI providers. Rate differences of 0.10%–0.20% between providers are common at the same LTV and credit tier. On a $350,000 loan, that difference is worth $350–$700 per year. It's worth asking.
When Does PMI Go Away? The Complete HPA Guide
The federal Homeowners Protection Act (HPA), enacted in 1999, gives borrowers clear legal rights around PMI cancellation. There are three distinct scenarios under which your lender must remove PMI:
- Automatic cancellation at 78% LTV: Your lender is legally required to cancel PMI automatically once your scheduled payments bring your loan balance to 78% of the original purchase price — that's 22% equity. This applies to your scheduled payment date, not when you actually pay down to that level, and it is a federal legal requirement with no opt-out for the lender.
- Borrower-requested cancellation at 80% LTV:You can proactively request PMI removal once your balance drops to 80% of the original purchase price (20% equity). The lender may require: (a) a written request, (b) a good payment history — typically no payments 60+ days late in the past two years, and (c) possibly a new appraisal confirming the home value hasn't declined.
- Midpoint cancellation:If your loan's normal amortization never reaches 80% LTV — rare, but possible on interest-only loans — lenders must cancel PMI at the midpoint of the repayment term. On a 30-year mortgage, that means month 180, regardless of your current balance.
Cancelling PMI Early Using Home Appreciation
If your home's value has risen significantly, you may be able to cancel PMI well ahead of schedule. Here's the typical lender process:
- Order a new appraisal from a lender-approved appraiser (usually $400–$700).
- Submit a written cancellation request to your mortgage servicer.
- Demonstrate that the current LTV — based on the appraised value — is 80% or below.
- Most lenders require you to have owned the home for at least 2 years and have no 30-day late payments in the past 12 months.
Example: You paid $400,000 for your home, put 10% down, and now have a $345,000 balance. Your home is now appraised at $460,000. Your new LTV is $345,000 ÷ $460,000 = 74.9% — well below 80%. You can request PMI removal immediately, potentially saving thousands in remaining premiums.
Strategies to Reduce or Eliminate PMI
1. Put 20% Down
The simplest path — but not always the most practical. On a $500,000 home, 20% down requires $100,000 in cash. For many first-time buyers, that would mean delaying homeownership by several years. The real question isn't "should I avoid PMI?" but rather "does waiting to save more down payment cost more than PMI itself?" Factor in rising home prices, missed equity appreciation, and the rent you'd continue paying while saving.
2. Piggyback Loans (80-10-10)
A piggyback loan uses two mortgages simultaneously: an 80% primary mortgage (no PMI), a 10% home equity loan or HELOC (second mortgage), and your 10% down payment. Because the first mortgage is at exactly 80% LTV, conventional PMI is never triggered. The second mortgage carries a higher interest rate (typically prime + 1–2%), but it may cost less than PMI — and you can pay it off aggressively. Use our calculator to compare your PMI monthly cost against an estimated second mortgage payment to see which makes more financial sense for your situation.
3. Lender-Paid PMI (LPMI)
Some lenders offer to pay your PMI upfront in exchange for a higher interest rate — typically 0.25%–0.75% higher. This eliminates the separate monthly PMI line item but permanently embeds the cost into your rate for the entire loan term. LPMI makes sense when you plan to sell or refinance within 5–7 years, before accumulated higher interest payments exceed what you'd have paid in PMI. If you intend to stay long-term, borrower-paid PMI that eventually cancels is almost always the better deal.
4. VA Loans for Eligible Borrowers
VA loans — available to active-duty military, veterans, and surviving spouses — require zero down payment and never require PMI. A VA funding fee applies instead (typically 1.25%–3.3% of the loan amount, financed into the loan). For most eligible borrowers, even accounting for the funding fee, the lifetime cost of a VA loan is dramatically lower than a conventional loan with years of PMI. If you or your spouse qualifies, using VA benefits is almost always the right financial decision.
5. Make Extra Principal Payments
Extra payments directly accelerate your equity buildup, moving you toward the 80% LTV threshold faster. Even an additional $100–$200/month applied to principal can shave 1–3 years off your PMI period, depending on your loan size and interest rate. The amortization timeline in our calculator shows exactly when your balance crosses 80% — experiment with the inputs to see how different down payment amounts change that timeline.
How to Use This PMI Calculator
Enter Your Home Price and Down Payment
Input the purchase price you're considering or have under contract. Toggle between entering a dollar amount or a percentage for your down payment. Try different amounts — moving from 5% to 10% down typically cuts your PMI rate by 30–40% and shortens the PMI period by several years.
Select Your Loan Type and Credit Score
Choose conventional PMI, FHA MIP, or VA (no PMI). Your credit score is the second-biggest driver of your PMI rate after LTV — the difference between a 680 and a 760 FICO score at 90% LTV is about 0.31% annually, or over $1,000/year on a $350,000 loan.
Add Property Tax and Insurance (Optional)
Adding annual property tax and homeowners insurance gives you the full PITI+PMI monthly payment — the number lenders use to calculate your debt-to-income ratio. Enter your gross annual income to also see your housing DTI.
Review Your PMI Timeline
Click "Show Balance & PMI Timeline" to see a bar chart of your loan balance over time. Red bars indicate months where PMI is active; green bars show when PMI has been cancelled. The goal is to shorten the red section as much as possible.
Compare Scenarios
Run the calculator multiple times with different down payment percentages, credit score tiers, or loan types. Compare total PMI paid across scenarios. Sometimes putting an extra 2–3% down meaningfully changes the rate tier and total cost — other times, the difference is minimal and the cash is better kept in reserves.
Who This PMI Calculator Is For
First-Time Buyers Evaluating Down Payments
Compare the monthly cost of putting 5%, 10%, or 20% down. See exactly how much PMI you'd pay and when it ends — versus the opportunity cost of a larger down payment.
Homeowners Tracking Equity for PMI Removal
Already have a mortgage? Estimate when your balance will cross the 80% LTV threshold so you know when to request PMI cancellation and save hundreds per month.
Refinance Candidates
If home values have risen, you may now have 20%+ equity and can refinance out of PMI. Use this calculator to see your current estimated LTV and potential savings.
Comparing Loan Programs
Run conventional PMI side-by-side with FHA MIP. For some borrowers with lower credit scores, FHA's flat MIP rate is cheaper than conventional PMI — this calculator shows the difference.
Piggyback Loan Strategy Evaluation
Considering an 80-10-10 loan structure? Calculate your PMI cost on a high-LTV loan versus the second mortgage payment to find which approach costs less over your planned holding period.
PMI and Your Debt-to-Income Ratio (DTI)
Lenders evaluate your mortgage affordability using your debt-to-income ratio — the percentage of your gross monthly income consumed by housing costs (PITI + PMI) plus all other monthly debt payments. Most conventional lenders cap the total DTI at 43–45%, while some allow up to 50% with compensating factors like excellent credit or large cash reserves.
PMI directly inflates your DTI because it's included in your monthly housing payment. On a $400,000 loan at 95% LTV with a 720 credit score, PMI adds approximately $207/month. At a $90,000 gross annual income, that's the equivalent of 2.8% DTI — which could be the difference between qualifying and being declined, or between your preferred loan amount and a lower one.
Enter your annual income in this calculator to see your exact housing DTI. If it exceeds 36%, consider whether a larger down payment (to lower PMI) or a less expensive home would put you in a more comfortable financial position.
Frequently Asked Questions About PMI
What is Private Mortgage Insurance (PMI)?
How is PMI calculated in 2026?
When can I stop paying PMI?
Is PMI tax-deductible in 2026?
What's the difference between PMI and MIP?
How can I avoid paying PMI?
Does a higher credit score reduce my PMI payment?
What is lender-paid PMI (LPMI)?
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