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PMI Calculator

Estimate your monthly Private Mortgage Insurance cost, and find out exactly when you can request cancellation or expect automatic termination.

$
$
%
years
Monthly PMI$199.50
Loan-to-value95.00%
PMI required?Yes
Estimated PMI rate0.72%
Cancellation balance (80% LTV)$280,000.00
Termination balance (78% LTV)$273,000.00
Total PMI paid until termination$26,932.50

Your down payment is below 20%, so PMI applies. Based on your amortization schedule, you can request cancellation around month 124 (roughly year 10.3) once your balance reaches 80% of your original home value, and PMI is automatically terminated around month 135 once your balance reaches 78%, per the Homeowners Protection Act of 1998.

How this calculator works

Private Mortgage Insurance (PMI) is required by most conventional lenders whenever your down payment is below 20% — that is, whenever your loan-to-value (LTV) ratio is above 80%:

LTV = loan amount ÷ home value

When PMI applies, its monthly cost is loan amount × annual PMI rate ÷ 12, where the annual PMI rate is risk-based and generally falls between about 0.3% and 1.5% depending on your LTV and credit profile. This is one of the most commonly misunderstood parts of a mortgage: PMI protects the lender, not you, against the risk of a low-down-payment loan — but it's a cost you pay, and it's removable. Under the Homeowners Protection Act of 1998, you can request cancellation once your amortization schedule shows your balance reaching 80% of your home's original value, and your lender must automatically terminate PMI once the balance reaches 78% of that original value, provided you're current on payments.

Worked example

Take a $350,000 home purchased with a $332,500 loan (a 5% down payment) at 6.5% over 30 years — a 95% loan-to-value ratio. Because LTV is above 80%, PMI is required, at an estimated annual rate of 0.72%, working out to $199.50 a month. Based on the amortization schedule, the balance is projected to fall to the 80% cancellation threshold ($280,000) around month 124 (about 10.3 years in), and to the 78% automatic termination threshold ($273,000) around month 135 (about 11.3 years in) — by which point the borrower will have paid roughly $26,933 in total PMI premiums.

What affects your result

  • Down payment size — the single biggest lever: crossing 20% down avoids PMI entirely, while 3-5% down means paying PMI for many years.
  • Interest rate and term — a lower rate or shorter term builds equity faster, reaching the 80%/78% thresholds sooner.
  • Extra principal payments — paying down your balance faster than scheduled moves the cancellation and termination dates earlier than this baseline estimate.
  • Credit score and loan type — better credit typically earns a lower PMI rate at the same LTV; this calculator uses a standard tiered estimate that you can override if you have an actual quote.

A note on accuracy

PMI rates are individually underwritten and vary by insurer, credit score, and loan program — treat the rate here as a reasonable planning estimate, not a quote. Cancellation and termination months are projected from a standard amortization schedule and assume no missed payments or extra principal payments beyond what you've entered. For official rules on PMI cancellation rights, see the Consumer Financial Protection Bureau.

Frequently asked questions

How much is PMI?

PMI typically costs between 0.3% and 1.5% of your loan amount per year, depending mainly on your loan-to-value ratio and credit score — the closer your down payment is to 20%, the lower the rate. On a $332,500 loan at 95% LTV, for example, PMI might run around 0.72% annually, or roughly $200 a month. Use the calculator above with your own loan amount and home value for an estimate.

When does PMI go away?

Under the Homeowners Protection Act of 1998, you can REQUEST cancellation once your loan balance is scheduled to reach 80% of your home's ORIGINAL value, and your lender is required to AUTOMATICALLY terminate PMI once the balance reaches 78% of the original value, as long as you're current on payments. This calculator estimates the month each threshold is projected to occur based on your amortization schedule.

How do you calculate PMI?

Monthly PMI = loan amount × annual PMI rate ÷ 12. The annual rate itself is risk-based, set by mortgage insurers according to your loan-to-value ratio, credit score, and loan type — this calculator uses a tiered estimate by LTV band, which you can see reflected in the 'Estimated PMI rate' result above.

How can I get rid of PMI faster?

Three main ways: pay down your principal faster (extra payments accelerate reaching the 80%/78% LTV thresholds — see our Mortgage Payoff Calculator), make a larger down payment upfront so you start below 80% LTV and skip PMI entirely, or request a new appraisal if your home's value has risen enough that your current balance is already below 80% of the new value, even without extra payments.

Is PMI the same as homeowners insurance?

No — they're unrelated. Homeowners insurance protects you against damage to your home and is required by every mortgage lender regardless of your down payment. PMI (Private Mortgage Insurance) protects the LENDER if you default, and is only required on conventional loans when your down payment is below 20%. FHA loans have a similar but distinct charge called MIP (Mortgage Insurance Premium) with different removal rules.

Does a 20% down payment always avoid PMI?

On a conventional loan, yes — a down payment of 20% or more puts your loan-to-value at 80% or below, which is the threshold most conventional lenders use to waive PMI entirely from day one. Below 20% down, PMI applies automatically until your balance is paid down to that same 80% level (or 78% for automatic termination).

Related calculators

Mortgage CalculatorSee PMI combined with your full monthly PITI payment.Mortgage Payoff CalculatorSee how extra payments speed up reaching 80% LTV.Home Affordability CalculatorFind out how much house you can afford before PMI applies.