How Much Is PMI on a $300,000 Loan?
PMI on a $300,000 loan typically ranges from roughly $75 to $250 per month depending on your credit score and loan-to-value ratio. Over the years it takes to reach 80 percent equity for cancellation, the total reaches five figures. Enter your details above to see your cost and removal timeline.
Your loan and value
—
month 0, when the balance reaches 80% of the original price
- Starting loan-to-value
- 0%
- Monthly principal & interest
- $0.00
- Servicer must cancel (78%)
- —
- Midpoint backstop
- —
- Extra payments pull it forward
- —
Cancellation at 80% is a request you must make in writing and the servicer can require proof of value and a clean payment record. Termination at 78% is automatic. Both are set by the Homeowners Protection Act, cited below.
Monthly and Annual PMI at $300,000
PMI is charged as an annual percentage of the original loan amount, divided into monthly installments. At an illustrative premium rate of 0.50 percent on a $300,000 loan, the annual cost is $1,500 — or $125 per month added to the mortgage payment. A borrower with a higher credit score might qualify for a rate nearer 0.30 percent, bringing the cost down to $75 per month. A lower score could push the rate toward 0.80 percent or higher, meaning $200 or more monthly.
These premiums do not shrink as the balance declines. The charge is typically calculated on the original loan amount and remains at that level until cancellation. On a $300,000 loan, the difference between the cheapest and most expensive tiers — roughly $75 versus $200 per month — is $1,500 per year, every year, until PMI ends.
Because insurer pricing varies, the calculator uses the premium rate you enter. If you have quotes from multiple providers, test each one to see the annual and cumulative difference.
Total PMI Cost Until Cancellation
The Homeowners Protection Act allows you to request PMI cancellation when the loan balance reaches 80 percent of the original home value, and requires automatic cancellation at 78 percent. On a $300,000 loan with 5 percent down — implying a home value around $315,800 — the 80 percent threshold is approximately $252,600. Reaching that balance through scheduled payments alone takes roughly nine to ten years at common interest rates.
At $125 per month over that period, total PMI cost lands in the $13,500 to $15,000 range. At $200 per month, the total approaches $24,000. These are costs that produce no equity, no tax benefit for most borrowers since 2022, and no return — they protect the lender, not the homeowner.
Extra payments or home appreciation can shorten the PMI window. The PMI removal calculator models both paths. For a broader look at how PMI fits into the full payment, see the PITI calculator with PMI and HOA.
PMI rates vary by insurer. The calculator reflects the rate you enter, not a standardised schedule. Tax deductibility of PMI has expired for most borrowers.