About the PMI Calculator
This PMI calculator estimates what private mortgage insurance adds to a conventional home loan when you put less than 20% down, and how long you will keep paying it. Enter the home price, down payment, rate, term and the PMI rate from your lender quote to see the monthly premium, your starting loan-to-value (LTV) ratio and the total cost of PMI over its life.
It is built for buyers deciding between a smaller down payment now and waiting to save 20%, and for homeowners wondering when they can drop PMI. The calculator shows both key dates from the US Homeowners Protection Act: when your scheduled balance reaches 80% of the original value (the point you can ask your servicer to cancel), and when it reaches 78% (when PMI must end automatically). PMI also ends at the midpoint of the loan term if it has not already.
Dates are based on the original amortization schedule and purchase price. Extra payments can reach 80% sooner, and a new appraisal showing appreciation may let you remove PMI earlier if your lender allows it. FHA mortgage insurance follows different rules.
With the default inputs, the monthly pmi is $196.88. Change any value above to recalculate instantly.
How to use the pmi calculator
- 1Enter the home price and your planned down payment.
- 2Enter the mortgage rate and loan term.
- 3Enter the PMI rate from your Loan Estimate (or try 0.5%–1% to compare).
- 4Read the monthly PMI and the dates it can be cancelled or ends automatically.
- 5Try a larger down payment to see how much PMI you would avoid.
Formula and method
PMI is quoted as a yearly percentage of the original loan amount and billed monthly, so the monthly premium is the loan times the PMI rate divided by 12. It applies when the starting loan-to-value ratio is above 80%.
To find when PMI ends, the calculator builds the loan’s amortization schedule and finds the first payment after which the scheduled balance is at or below 80% of the original price (you may request cancellation) and 78% (automatic termination). PMI also must end at the midpoint of the term, so the months of PMI are the smaller of the 78% date and half the term. Total PMI is the monthly premium times those months.
- LTV
- Loan-to-value ratio: balance ÷ original home value
- PMI rate
- Annual premium as a percent of the loan amount
Worked examples
$350k home with 10% down
A $315,000 loan on a $350,000 home is 90% LTV. At 0.75% a year, PMI is $196.88 a month. The balance reaches 80% of the price after payment 95 and 78% after payment 109, so automatic removal costs about $21,459 in total.
$400k home, 5% down, 7% rate, 1% PMI
Borrowing $380,000 at 95% LTV with a 1% PMI rate costs $316.67 a month. At 7% the balance falls slowly, so PMI lasts 142 payments (almost 12 years) and totals about $44,967.
20% down — no PMI
A $60,000 down payment on a $300,000 home makes the loan exactly 80% of the price, so conventional lenders do not require private mortgage insurance.
Frequently asked questions
How much is PMI per month?+
PMI usually costs about 0.3% to 1.5% of the original loan amount per year. On a $300,000 loan at 0.75%, that is $2,250 a year or $187.50 a month. Higher credit scores and bigger down payments get lower rates.
When does PMI go away?+
Under the Homeowners Protection Act, you can request cancellation once your balance is scheduled to reach 80% of the original value, and the servicer must end it automatically at 78% — or at the midpoint of the loan term — if you are current on payments.
Can I remove PMI early because my home value went up?+
Many lenders allow it with a new appraisal, often requiring 75%–80% LTV based on the current value and a minimum period of ownership. This is a lender policy, not a legal right, so ask your servicer for its rules.
How can I avoid PMI with less than 20% down?+
Options include lender-paid mortgage insurance (built into a higher rate), a piggyback 80-10-10 loan, VA loans (which have no monthly mortgage insurance), and some credit union or state housing programs.
Is PMI the same as FHA mortgage insurance?+
No. FHA loans charge an upfront premium plus an annual MIP that, for most loans with under 10% down, lasts for the life of the loan. Conventional PMI can be cancelled as your equity grows.
Is PMI tax deductible?+
It depends on the tax year. The itemized deduction for mortgage insurance premiums expired after 2021, and the 2025 tax law (the One Big Beautiful Bill Act) permanently restored it as deductible mortgage interest starting with the 2026 tax year, subject to an income phase-out. You only benefit if you itemize; check IRS Publication 936 for the current rules.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.