How is PMI calculated?

The amount you'll pay for PMI depends on several factors, including the size of your loan, your down payment amount, debt-to-income ratio and credit score. The larger your down payment, the less your PMI will cost. Those with higher credit scores and lower debt-to-income ratios typically pay lower rates as well.

How much is PMI?

The average cost of private mortgage insurance, or PMI, for a conventional home loan ranges from 0.58% to 1.86% of the original loan amount per year, according to the Urban Institute's Housing Finance Policy Center. The amount varies in part by credit score. Borrowers with lower credit scores pay more for PMI than borrowers with higher credit scores. The calculator estimates how much you'll pay for PMI, which can help you determine how much home you can afford.

At those rates, PMI on a $300,000 mortgage would cost $1,740 to $5,580 per year, or $145 to $465 per month.

 

Average annual PMI premium

Your credit score

Annual average premium as a percentage of original loan amount

620-639

1.86%.

640-659

1.65%.

660-679

1.54%.

680-699

1.21%.

700-719

0.99%.

720-739

0.87%.

740-759

0.70%.

760 and above

0.58%.

Source: The Urban Institute's Housing Finance Policy Center.

PMI calculator help

  • Home price: For the most accurate results, base the amount you enter on the amount for which you've already been pre-qualified or preapproved. You can also enter your best guess of how much you can afford.

  • Down payment: This is the amount of cash you plan to pay upfront for the home.

  • Interest rate: If you don't yet have a personalized rate quote from a lender, use today’s average mortgage rate as an estimate.

  • Credit score: The annual cost of PMI varies according to your credit score and other factors. Don't know your score? NerdWallet offers a free credit score that updates weekly.

  • Loan term: The 30-year term is the most common, especially among first-time home buyers. With a 15-year mortgage, you'll pay off the loan faster and pay less interest, but you’ll have higher monthly payments.

Once you’ve entered everything, you should see the following results:

  • Estimated PMI rate.

  • Your monthly PMI cost.

  • How long you'll pay PMI.

  • Your monthly mortgage payment, including PMI.

  • The total cost of your loan over its full term.

You can also get a detailed version of results broken down by monthly and total costs. Just check the box of the option you’d like to see.