PMI Calculator: Monthly Cost & How to Avoid It (2026)
Calculate your monthly PMI cost and understand how much you could save by making a larger down payment. See how credit score and LTV affect your PMI rate.
PMI Calculator
Monthly PMI Cost
$210.00
How PMI is Calculated
PMI Basics
PMI protects lenders against default when borrowers have less than 20% equity. The cost depends on LTV ratio, credit score, and loan term.
Typical PMI Rates
Rates typically range from 0.5% to 1.5% annually. Higher LTV and lower credit scores result in higher PMI rates.
PMI Cost Comparison: Different Down Payments
5% Down
LTV: 95%
Higher PMI
10% Down
LTV: 90%
Moderate PMI
20% Down
LTV: 80%
No PMI
Example: PMI Cost for $400K House with 10% Down
Assumptions
- • Home Price: $400,000
- • Down Payment: $40,000 (10%)
- • LTV: 90%
- • Credit Score: 720
- • PMI Rate: 0.8%
- • Loan Term: 30 years
PMI Cost
- • Loan Amount: $360,000
- • Annual PMI: $2,520
- • Monthly PMI: $210.00
- • Total PMI over 5 years: ~$12,600
With 10% down, you pay approximately $210.00/month in PMI. Consider saving for a 20% down payment to avoid this cost.
PMI Cost by Down Payment (2026)
As of 2026, here's how PMI costs vary based on down payment percentage on a $400,000 home with good credit (720+):
| Down Payment | Loan Amount | LTV Ratio | Est. Monthly PMI | Total PMI (5 Years) |
|---|---|---|---|---|
| 20% ($80,000) | $320,000 | 80% | $0.00 | $0.00 |
| 15% ($60,000) | $340,000 | 85% | $142.00 | $8,520 |
| 10% ($40,000) | $360,000 | 90% | $225.00 | $13,500 |
| 5% ($20,000) | $380,000 | 95% | $317.00 | $19,020 |
| 3% ($12,000) | $388,000 | 97% | $388.00 | $23,280 |
Key Insight: On a $400K home, saving for a 20% down payment avoids $13K-$23K in PMI costs over 5 years. If you're close to 20%, even a small extra down payment can significantly reduce PMI.
Frequently Asked Questions
What is PMI?
PMI (Private Mortgage Insurance) is a type of insurance that protects the lender if you default on your mortgage. It is typically required when the down payment is less than 20% of the home price.
How much does PMI cost in 2026?
As of 2026, PMI typically costs between 0.5% and 1.5% of the loan amount per year. For a $300,000 loan, that would be $1,500 to $4,500 annually, or $125 to $375 per month.
When does PMI go away?
PMI is automatically removed when your loan-to-value ratio reaches 78% based on the original purchase price. You can also request cancellation when you reach 80% LTV. This typically takes 5-10 years.
Can I avoid PMI?
Yes, you can avoid PMI by making a 20% down payment, using a piggyback loan (80-10-10), or considering alternative loan programs like VA or USDA loans.
Is PMI tax deductible in 2026?
PMI may be tax deductible if you itemize deductions and your income is below $109,000 ($54,500 for married filing separately). Consult a tax professional for specific advice.
How does credit score affect PMI rates?
Higher credit scores qualify for lower PMI rates. A score of 740+ may get 0.5-0.75% rates, while scores below 620 may pay 1.25-1.5% annually.
What is the PMI rate for different LTV ratios?
PMI rates increase with LTV: 80-85% LTV = 0.5-0.75%, 85-90% LTV = 0.75-1.0%, 90-95% LTV = 1.0-1.25%, 95%+ LTV = 1.25-1.5%.
Can I refinance to eliminate PMI?
Yes, if your home has appreciated enough to reach 20% equity, refinancing can remove PMI. Compare refinancing costs against PMI savings before deciding.
What is the difference between borrower-paid and lender-paid PMI?
Borrower-paid PMI is added to your monthly payment. Lender-paid PMI is paid by the lender but results in a higher interest rate. Choose based on your cash flow preferences.
How is monthly PMI calculated?
Monthly PMI = (Loan Amount × Annual PMI Rate) ÷ 12. For example, $300,000 × 0.8% ÷ 12 = $200/month.
Can PMI rates change over time?
PMI rates are typically fixed at closing for the life of the loan. However, your monthly PMI payment decreases as you pay down your principal.
What happens to PMI if I sell my home?
PMI is canceled when you sell your home because the loan is paid off. You won't receive a refund for any prepaid PMI.
Related Tools & Resources
PMI Calculator
Calculate PMI costs and explore LTV scenarios.
Mortgage Calculator
Calculate your complete monthly mortgage payment.
How to Avoid PMI with 10% Down
Strategies to avoid PMI without 20% down.
Is 20% Down Payment Necessary?
Understanding down payment requirements.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. PMI rates vary by lender and loan program.
Always consult with a qualified mortgage professional to get accurate PMI quotes for your specific situation.