PMI Calculation Table & Tool
Estimate Private Mortgage Insurance Premiums Based on LTV and Credit Rating
Calculation Results
Loan-to-Value (LTV): %
Total Loan Amount: $
Estimated Annual Rate: %
Monthly PMI Cost: $
Understanding the PMI Calculation Table
Private Mortgage Insurance (PMI) is a risk-mitigation premium required by lenders when a borrower has a down payment of less than 20% (an LTV higher than 80%). Unlike interest, PMI does not go toward your principal; it protects the lender in case of default. The cost is primarily determined by two variables: your Loan-to-Value (LTV) ratio and your Credit Score.
Standard PMI Rate Table (Estimated Annual %)
| Credit Score | 95.01% – 97% LTV | 90.01% – 95% LTV | 85.01% – 90% LTV | 80.01% – 85% LTV |
|---|---|---|---|---|
| 760+ | 0.55% | 0.41% | 0.30% | 0.19% |
| 720-759 | 0.75% | 0.59% | 0.44% | 0.23% |
| 680-719 | 1.10% | 0.87% | 0.63% | 0.33% |
| 640-679 | 1.75% | 1.31% | 0.98% | 0.50% |
How to Calculate PMI Manually
To calculate your monthly PMI payment, you can follow these steps:
- Determine Loan Amount: Subtract your down payment from the purchase price.
- Calculate LTV: Divide the Loan Amount by the Property Value.
- Identify Rate: Use the table above to find the intersection of your Credit Score and LTV.
- Calculate Annual Premium: Multiply the Loan Amount by the Annual Rate (e.g., 0.0055 for 0.55%).
- Calculate Monthly Cost: Divide the Annual Premium by 12.
Example Scenario
If you purchase a home for $400,000 with a $20,000 down payment (5% down), your loan amount is $380,000 and your LTV is 95%. If your credit score is 740, the table suggests a rate of approximately 0.59%.
$380,000 × 0.0059 = $2,242 per year
$2,242 / 12 = $186.83 per month
How to Remove PMI
Most borrowers can request to cancel PMI once the loan balance reaches 80% of the original home value. By law, lenders must automatically terminate PMI when the balance reaches 78%, provided the borrower is current on payments. Refinancing or home price appreciation can also help you reach the 20% equity threshold faster.