PMI — Private Mortgage Insurance Calculator
Estimate your monthly PMI cost, exact cancellation date, and total amount paid using 2026 national rate data. Free, instant, no sign-up required.
Loan Details
Full purchase price of the home — not its current market value
A 20% or more down payment eliminates PMI entirely
2026 national average 30-year fixed rate is approx. 6.8%
A shorter term builds equity faster, reaching 80% LTV sooner
Credit Score Range
PMI Type
Indicative estimate only. Not a binding insurance offer. Based on 2026 national market averages. Actual rates vary by lender and insurer.
What Is a PMI Mortgage Insurance Calculator?
Let’s be honest : everyone knows it by a different name. A private mortgage insurance calculator — also known as a mortgage insurance calculator or Way2insurance's PMI Calculator (PMI mortgage calculator) is a free online tool that estimates the cost of private mortgage insurance on your home loan before you ever speak to a lender. Lenders require PMI on conventional mortgages whenever your down payment is less than 20% of the purchase price, because a lower down payment means a higher loan-to-value (LTV) ratio and greater default risk. Knowing your exact private mortgage insurance cost in advance lets you compare loan options, plan your monthly budget, and map out the fastest path to cancellation.
The cost of mortgage insurance is driven by three inputs: your LTV ratio, your credit score, and the type of PMI your lender uses. In 2026, annual pmi rates range from 0.19% (excellent credit, 760+) to 1.30%+ (poor credit, below 640). On a $350,000 loan that gap means the difference between $55/month and $379/month — which makes running the numbers through a conventional mortgage insurance calculator before you commit to a rate essential.
Our pmi insurance calculator above handles all the calculating mortgage insurance work automatically. Enter your home price, down payment, interest rate, credit score, and loan term — and it instantly returns your monthly PMI, total private mortgage insurance rates applied, and the exact calendar month your PMI cancels. No spreadsheets, no manual pmi calculation required.
How to Calculate PMI — Step by Step
Follow these five steps to manually calculate mortgage insurance, or use the pmi calculator at the top of this page to get your result in seconds.
The annual PMI rate is set by the insurer based on your credit score and LTV ratio. Divide the annual cost by 12 to get the monthly figure added directly to your mortgage payment. This is the same equation every how much is mortgage insurance calculator uses internally.
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Find your loan amount
Subtract your down payment from the home's purchase price. This is the exact dollar amount you will borrow — the starting point for any pmi calculation. Always use the original purchase price, not the appraised or current market value.
Example: Home price $400,000 − Down payment $40,000 = Loan amount: $360,000 -
Calculate your LTV ratio
Divide your loan amount by the home purchase price and multiply by 100. Your LTV ratio determines whether PMI is required at all: above 80% LTV, PMI is mandatory on conventional loans. The higher the LTV, the higher your private mortgage insurance rates will be.
Formula: LTV = (Loan ÷ Price) × 100
Example: ($360,000 ÷ $400,000) × 100 = LTV: 90% — PMI is required -
Look up your annual PMI rate
Your insurer assigns an annual pmi rate based primarily on your credit score and LTV ratio. Excellent credit (760+) unlocks pmi rates as low as 0.19%, while poor credit (below 640) can mean 1.30% or more. Refer to the rate table in the next section to find the figure closest to your profile.
Good credit (720–759) at 90% LTV → approx. annual PMI rate: 0.38% -
Calculate your monthly PMI payment
Multiply your loan amount by the annual PMI rate, then divide by 12. This gives you the monthly amount added to your mortgage bill — the core answer to how to calculate mortgage insurance and the primary output of any calculate pmi tool.
Formula: ($360,000 × 0.0038) ÷ 12
= $1,368 annual PMI ÷ 12 = $114 per month -
Find your total PMI cost and cancellation date
Under the Homeowners Protection Act (HPA), your lender must cancel PMI once your balance reaches 80% of the original purchase price — $320,000 in our example. Build a month-by-month amortization schedule to identify exactly which month that balance is reached, then multiply your monthly PMI by that number of months to calculate the full cost of private mortgage insurance over the loan life. This is the most accurate method of calculating mortgage insurance total cost — and exactly what the pmi insurance calculator at the top of this page automates for you.
Example continued: At 90% LTV on a 30-year loan at 6.8%, the balance reaches $320,000 after approx. 88 months (7 years, 4 months).
Total PMI = 88 months × $114 = $10,032 total PMI paid.
Use the PMI mortgage calculator above to run this calculation instantly for your exact numbers.💡 Tip: Adding even $100–$200/month in extra principal payments can push your balance to 80% LTV years sooner — potentially saving thousands in total cost of mortgage insurance.
2026 Private Mortgage Insurance Rates by Credit Score
Use this table as a reference when you calculate pmi manually. Actual pmi rates vary by insurer, lender, and exact LTV ratio.
| Credit score | Annual PMI rate | Monthly — $300k loan | Monthly — $500k loan | Rate bar | Level |
|---|---|---|---|---|---|
760 + · Excellent |
~0.19% | ~$48 / mo | ~$79 / mo | Lowest | |
720–759 · Good |
~0.38% | ~$95 / mo | ~$158 / mo | Standard | |
680–719 · Fair |
~0.61% | ~$153 / mo | ~$254 / mo | Moderate | |
640–679 · Average |
~0.86% | ~$215 / mo | ~$358 / mo | Higher | |
Below 640 · Poor |
~1.30% | ~$325 / mo | ~$542 / mo | Highest |
* Indicative 2026 estimates for a 30-year conventional loan at 90% LTV. Actual private mortgage insurance rates vary by insurer and lender. Use the pmi insurance calculator above for a personalised result.
Three Types of Private Mortgage Insurance
Which type applies to you changes how you calculate mortgage insurance total cost — and what you actually pay each month.
BPMI — Borrower-Paid Monthly
Billed as a separate monthly charge on top of your mortgage payment. Cancels automatically at 80% LTV under the Homeowners Protection Act — making it the most transparent type and the default in every conventional mortgage insurance calculator.
LPMI — Lender-Paid PMI
The lender pays PMI but charges a higher interest rate for the life of the loan. No separate PMI line item, but the cost of mortgage insurance is permanently built into your rate and cannot be canceled as equity grows.
SPMI — Single-Premium PMI
One lump-sum payment at closing covers the full private mortgage insurance cost, eliminating all monthly charges. Typically costs 1.5–3% of the loan amount upfront.
6 Ways to Reduce or Eliminate Your Mortgage Insurance Cost
Once you calculate pmi, use these strategies to lower the total cost of private mortgage insurance or remove it entirely.
Improve your credit score
Moving from fair (680) to excellent (760+) can reduce your annual pmi rate by up to 80%, saving thousands in total private mortgage insurance cost.
Put 20% down
The simplest way to eliminate private mortgage insurance entirely — a 20% down payment keeps LTV at exactly 80% from day one.
Make extra principal payments
Extra payments reduce your balance faster, reaching the 80% LTV cancellation point sooner and cutting total cost of mortgage insurance.
Use an 80/10/10 piggyback loan
Finance 80% as a primary mortgage, 10% as a second loan, and put 10% down — keeping the primary LTV at 80% so no pmi calculation applies.
Request cancellation in writing
Lenders don't always cancel PMI automatically. Once your balance hits 80% LTV, submit a written request — your mortgage insurance calculator can confirm the exact date.
Refinance after home values rise
If your home has appreciated, a new appraisal may show LTV already below 80%, letting you refinance out of private mortgage insurance rates completely.
The PMI Private Mortgage Insurance Calculator is a valuable tool for homeowners who want to estimate the cost of private mortgage insurance (PMI) on their mortgage.
PMI Calculator — FAQ
How do I calculate private mortgage insurance?
Formula
It's very simple: PMI is calculated as a percentage of your original loan amount per year. The general formula is:
PMI = (Loan Amount × PMI Rate) ÷ 12
Here’s the thing: on a $300,000 loan with a 0.5% PMI rate, your annual PMI would be $1,500, or $125/month.
The PMI rate typically ranges from 0.2% to 2% of the loan balance, depending on your credit score, down payment size, and lender. The lower your down payment and credit score, the higher your PMI rate tends to be.
What is the average cost of private mortgage insurance?
The average PMI cost is typically 0.5% to 1.5% of the loan amount annually, though it can range from 0.2% to 2%.
On a $250,000 mortgage, that translates to roughly $1,250–$3,750 per year, or $104–$312 per month added to your mortgage payment.
Major key factors that affect your rate include credit score, down payment percentage (3%–19%), loan type (fixed vs. adjustable), and loan-to-value ratio. Borrowers with a credit score above 760 and a down payment near 20% will see the lowest PMI rates.
What is a disadvantage of private mortgage insurance?
The biggest disadvantage: PMI protects the lender, not you. If you default, the insurer pays the lender; you receive no benefit from the premium you pay.
Other key drawbacks include the following:
• Added monthly cost—hundreds of dollars per month that don't build equity or reduce principal.
• No direct benefit to borrower — unlike homeowner's insurance, PMI offers you no financial protection.
• Difficult to cancel — you typically need to reach 20% equity and formally request removal; some lenders require a new appraisal.
• Long-term expense — on a slow-appreciating home, you could pay PMI for many years before reaching the 80% LTV threshold.
How to calculate the PMI monthly payment?
Step-by-step
Follow these three steps:
Step 1 — Find your loan amount
This is the total amount you're borrowing (home price minus down payment).
Loan Amount = Home Price − Down Payment
Step 2—Determine your PMI rate
Your lender will provide this. A common estimate is 0.5%–1% annually for most borrowers.
Step 3 — Calculate monthly PMI
Monthly PMI = (Loan Amount × Annual PMI Rate) ÷ 12
Example: $280,000 loan × 0.8% ÷ 12 = $186.67/month
PMI is automatically cancelled once you reach 22% equity (78% LTV) under federal law, or you can request cancellation at 20% equity with a good payment history.
Does my credit score affect PMI rates?
Yes, significantly. Moving from fair (680) to excellent (760+) credit can reduce your annual PMI rate by up to 65–80%, saving hundreds of dollars per year on a typical loan. Improving your credit before applying is one of the most effective ways to lower PMI costs.