PMI Calculator
Estimate private mortgage insurance and find out when it drops off.
Details
= $40,000
Est. PMI rate 0.33%
Monthly PMI
$99.00
Estimated PMI rate
0.33%
You'll pay PMI for
8 yr 5 mo
Total PMI paid
$9,999
Total mortgage cost
$872,231
This estimates private mortgage insurance on a conventional loan with less than 20% down, as a monthly cost and a total.
It also shows when your balance reaches the point where PMI can be cancelled, which is the number worth planning around.
What PMI is and how to remove it
Private mortgage insurance is a charge added to your mortgage payment when you put down less than 20%. It protects the lender, not you, and it exists so they will lend at all on a small down payment.
It typically costs 0.3% to 1.5% of the loan each year, depending on your credit score and how little you put down. On a $380,000 loan at 0.5% that is $158 a month.
The important part is that it is temporary. Under the US Homeowners Protection Act you can request cancellation at 80% loan-to-value and the lender must terminate it automatically at 78%, both measured against the original property value on the original payment schedule.
Both are measured against the original value on the original schedule. Waiting for the automatic point on a $380,000 loan costs about eleven more monthly premiums than asking at 80%.
What to enter
- Home price and down payment
- Together these set your loan-to-value ratio, which drives both whether PMI applies and how much it costs.
- PMI rate
- Usually 0.3% to 1.5% of the loan a year. Lower credit scores and smaller down payments push it towards the top of that range.
- Loan rate and term
- These determine how fast the balance falls, and so how long you pay PMI for.
Mortgage insurance by loan type
- Conventional (PMI)
- Required below 20% down. Cancellable at 80% LTV on request, automatic at 78%.
- FHA (MIP)
- An upfront premium plus an annual one. With less than 10% down it lasts the whole life of the loan and can only be removed by refinancing.
- VA
- No monthly mortgage insurance at all. There is a one-time funding fee instead.
- USDA
- An upfront guarantee fee plus a smaller annual fee, generally lower than FHA.
What this assumes
PMI rates are quoted by the insurer and vary with credit score, so the figure here is an estimate.
Cancellation thresholds are based on the original value and original schedule, not on what the home is worth now, unless you pay for a new appraisal.
How to calculate your PMI cost
The monthly cost is one multiplication. The useful part is working out how long you will pay it.
- annual PMI rate
- Typically 0.003 to 0.015
- loan amount
- The original balance, which is what most lenders base the premium on
Check whether PMI applies. Below 20% down on a conventional loan it does. At 20% or more it does not.
Work out the monthly premium. Loan amount times the annual rate, divided by 12.
Find when you reach 80% LTV. Work down the amortisation schedule to where the balance is 80% of the original value. That is when you can ask for cancellation.
Total the premiums to that point. Months times the monthly premium. That total is what PMI actually costs you, and it is usually larger than people expect.
See a worked example: the real cost of a 5% down payment
- Home price
- $400,000
- Down payment
- 5%, so a $380,000 loan
- Rate
- 6.5% over 30 years, PMI at 0.5%
Monthly PMI: $380,000 × 0.5% ÷ 12 = $158.
On scheduled payments alone the balance reaches $320,000, which is 80% of the original value, at month 124.
That is 124 premiums of $158, so about $19,600 of PMI paid before you can request cancellation.
Automatic termination at 78% arrives at month 135, eleven premiums later. Asking at 80% rather than waiting saves roughly $1,700.
$158 a month, about $19,600 in total
Frequently asked questions
Ask. Once the balance reaches 80% of the original property value, you can request cancellation in writing, and the lender must comply if you are current on payments and meet their conditions.
If you do nothing, it terminates automatically at 78%. That is later and costs you more, which is why the request matters. Paying extra principal brings both dates forward.
Sometimes. If the property has appreciated or you have renovated, many lenders will cancel PMI based on a new appraisal showing you have reached the threshold.
You pay for the appraisal, typically a few hundred dollars, and each lender has its own seasoning requirements. In a rising market it can be well worth it, since it can cut years off the premiums.
Usually 0.3% to 1.5% of the loan amount per year. On a $380,000 loan that is roughly $95 to $475 a month.
Credit score matters most, followed by how much you put down. Improving a score before applying can move the rate meaningfully, and the saving runs for years.
No, and the difference matters. FHA charges MIP, which includes an upfront premium and an annual one.
With less than 10% down, FHA MIP lasts the entire life of the loan. It cannot be cancelled by reaching an equity threshold. The only way out is to refinance into a conventional loan.
It depends on what prices do while you save. PMI on a $380,000 loan at 0.5% is $158 a month, which is real but not enormous next to the payment itself.
If prices rise 5% a year, waiting two years to avoid PMI can cost more in purchase price than the premiums would have. If prices are flat, waiting usually wins. Run both.
Problems people actually run into
Paying PMI for years after you could have cancelled it
Lenders are not required to remind you at the 80% point, only to terminate at 78%. Borrowers routinely pay premiums past the date they could have stopped them.
Work out your 80% month when the loan starts and put it in a calendar. On the example loan it is month 124, and the request is worth about $1,700.
Assuming extra payments do not help
Automatic termination at 78% follows the original schedule regardless of extra payments, which makes people think overpaying is pointless for PMI.
It is not. Extra principal brings forward the point where you can request cancellation at 80%, and that request is the route worth using anyway.
Results are estimates for general information only and are not professional financial, medical, or legal advice. Read our full disclaimer.
Sources
- Homeowners Protection Act (PMI cancellation and termination) · Consumer Financial Protection Bureau
Last updated: September 4, 2026