Calcs4All

APR 23 · 2026

PMI calculator

Estimate private mortgage insurance cost from home price, down payment percent, and annual PMI rate.

What this calculator covers

Use this PMI calculator to estimate how a smaller down payment can increase monthly housing cost through private mortgage insurance.

The walkthrough keeps the cash down, loan-to-value ratio, and monthly PMI estimate visible together so buyers can compare financing scenarios more clearly.

Frequently asked questions

What is private mortgage insurance?
PMI is insurance you pay for when your conventional mortgage has less than 20% down. It protects the lender if you default — not you. Premiums are typically 0.3% to 1.5% of the loan amount per year, paid monthly.
When does PMI go away?
By federal law, PMI automatically terminates when your loan balance reaches 78% of the original home value, provided you are current on payments. You can also request cancellation at 80% loan-to-value based on the original value.
Can I avoid PMI without putting 20% down?
A few paths exist: a piggyback second loan that keeps the first-loan LTV at 80%, lender-paid MI (built into a higher rate), FHA loans (which have their own mortgage insurance premium rules), or VA and USDA loans (which do not require MI for eligible buyers).
Does PMI apply to FHA loans?
Not exactly. FHA loans use mortgage insurance premium (MIP), which is different from PMI. MIP generally applies for the life of the loan unless you refinance out of FHA, which is a key distinction from conventional PMI.

Tool

Run the calculation

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RESULT · PMI

â„–033

Primary result

$223.13

With 10% down on $425,000.00, the estimated loan-to-value is 90% and PMI costs about $223.13 per month at a 0.7% annual PMI rate.

Down payment amount
$42,500.00
Estimated loan amount
$382,500.00
Loan-to-value
90%
Annual PMI cost
$2,677.50
Monthly PMI cost
$223.13

Step-by-step solution

  1. 1.Calculate the down payment amount from the home price and down payment percent to get $42,500.00 down.
  2. 2.Subtract the down payment from the home price to estimate a loan amount of $382,500.00, which equals 90% loan-to-value.
  3. 3.Apply the annual PMI rate to the loan amount and divide by 12 to estimate $223.13 per month in PMI.

Walkthrough

Visual walkthrough

PMI estimates start by sizing the loan after the down payment, then applying the annual PMI rate to that financed balance.

  1. 01

    Split price into cash and financed balance

    $425,000.00 × 10% = $42,500.00

    The down payment reduces the financed balance before PMI is applied.

    $42,500.00 down payment

  2. 02

    Read the loan-to-value ratio

    $382,500.00 ÷ $425,000.00 = 90%

    Loan-to-value shows how much of the purchase still relies on financing.

    90% LTV

  3. 03

    Convert the annual PMI rate into monthly cost

    $382,500.00 × 0.7% ÷ 12 = $223.13

    This estimates the recurring monthly PMI charge from the annual rate.

    $223.13 per month