# PMI Calculator

Calculate PMI costs, monthly and annual, for your mortgage. See your LTV ratio and when PMI can be removed. Free private mortgage insurance calculator.

## What this calculates

Estimate your Private Mortgage Insurance costs with our free PMI calculator. Enter your home price, down payment percentage, and PMI rate to see monthly and annual costs, your LTV ratio, and how long until PMI is automatically removed.

## Inputs

- **Home Price** ($) — min 0 — The purchase price of the home.
- **Down Payment** (%) — min 0, max 100 — Your down payment as a percentage of the home price.
- **PMI Rate** (%) — min 0.1, max 3 — The annual PMI rate (typically 0.3%-1.5% of the loan amount).
- **Mortgage Interest Rate** (%) — min 0, max 20 — Your mortgage interest rate (used to estimate when PMI drops off).
- **Loan Term (Years)** — min 10, max 30 — The length of your mortgage.

## Outputs

- **Monthly PMI Payment** — formatted as currency — Your estimated monthly PMI cost.
- **Annual PMI Cost** — formatted as currency — The total annual PMI cost.
- **Loan-to-Value Ratio** — formatted as percentage — Your current LTV ratio. PMI is required above 80% LTV.
- **Months Until PMI Removal** — Estimated months of payments until you reach 78% LTV and PMI is automatically removed.

## Details

Private Mortgage Insurance (PMI) is required by most lenders when a borrower makes a down payment of less than 20% on a conventional mortgage. PMI protects the lender (not the borrower) against loss if the borrower defaults. Typical PMI rates range from 0.3% to 1.5% of the original loan amount per year, depending on the borrower's credit score, down payment size, and loan type.

PMI can be removed once your Loan-to-Value (LTV) ratio drops to 80% (by your request) or 78% (automatic cancellation under the Homeowners Protection Act). LTV decreases as you make mortgage payments and as the home appreciates in value. You can request early PMI removal based on a new appraisal showing sufficient equity, which can save years of PMI payments.

While PMI adds to your monthly costs, it enables homeownership with less than 20% down. On a $400,000 home with 10% down, PMI at 0.5% costs about $150 per month. Waiting to save an additional 10% ($40,000) for a 20% down payment could take years, during which home prices may rise significantly. PMI is often a worthwhile trade-off to buy sooner and start building equity.

## Frequently Asked Questions

**Q: When can PMI be removed?**

A: Under the Homeowners Protection Act, lenders must automatically cancel PMI when your LTV ratio reaches 78% based on the original amortization schedule. You can request removal at 80% LTV. Some lenders allow early removal based on a new appraisal showing at least 20% equity. FHA loans have different rules and often require mortgage insurance for the life of the loan.

**Q: How much does PMI cost?**

A: PMI typically costs 0.3% to 1.5% of the original loan amount per year. The exact rate depends on your credit score (higher scores get lower rates), the size of your down payment (smaller down payments mean higher rates), and the loan type. For a $360,000 loan at 0.5%, PMI costs $1,800 per year or $150 per month.

**Q: Is PMI tax deductible?**

A: PMI tax deductibility has been extended and expired several times by Congress. Check current tax law for the latest status. When deductible, PMI premiums can be claimed as an itemized deduction on Schedule A, subject to income phase-outs. Consult a tax professional for advice specific to your situation.

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Source: https://vastcalc.com/calculators/finance/pmi
Category: Finance
Last updated: 2026-04-21