PMI Calculator

Adjust the inputs below. Results update as you type.

How it works

PMI is required by most lenders when your down payment is less than 20% of the home price. It protects the lender (not you) if you default. PMI typically costs 0.3–1.5% of the loan amount per year, added to your monthly payment. Under the Homeowners Protection Act, PMI is automatically terminated when your LTV reaches 78%, and you can request cancellation at 80%.

Input guidance

Home price and down payment define starting LTV.
Enter a PMI annual rate from the quote when available.
Track when LTV crosses cancel/termination thresholds.

The formula

LTV = loan ÷ home price. If LTV > 80%, monthly PMI ≈ (loan × annual PMI rate) ÷ 12. Months until PMI can drop are estimated by amortizing until the balance reaches 80% of the original home price.

Worked example

On a $400,000 home with 10% down ($360,000 loan) at 0.55% PMI, monthly PMI is about $165. At a typical 6.5% 30-year rate you may pay PMI for several years until equity hits 20%.

More examples to test

$450,000 home with 10% down at 0.7% PMI: estimate monthly PMI cost.
Same loan after principal paydown to 80% LTV: note cancellation eligibility.

How to interpret results

PMI protects the lender. Plan for cancel/termination rules and compare a larger down payment as an alternative.

When this can be inaccurate

Lender-paid PMI, FHA MIP, and appraisal-based removal rules can differ from a simple LTV model.

Sources

CFPB — What is private mortgage insurance?
Homeowners Protection Act of 1998

Change history

July 2026: Published with cancel/termination LTV guidance from Homeowners Protection Act framing.

Site-wide corrections also appear on the corrections log.

Private Mortgage Insurance is typically required when your down payment is less than 20%. PMI protects the lender, not you — and it adds to your monthly payment until you reach 80% LTV.

Home price ($)

Down payment (%)

PMI rate (% of loan/year)

Typically 0.3–1.5% depending on credit score and LTV.

Loan interest rate (%)

Loan term (years)

Monthly PMI cost: $165.00/mo
Annual PMI: $1,980/yr
Current LTV: 90.0%
Months until 80% LTV: ~95 months (7.9 years)
Total PMI cost: $15,675

Down %	Down $	Loan	Monthly PMI
5%	$20,000	$380,000	$174.17
10%	$40,000	$360,000	$165.00
15%	$60,000	$340,000	$155.83
20%	$80,000	$320,000	$0 (no PMI)

Compare scenarios

PMI is automatically cancelled at 78% LTV under the Homeowners Protection Act; you can request cancellation at 80%. Actual PMI rates depend on credit score, LTV, and loan type.

Report error

Frequently asked questions

When can I cancel PMI?+

You can usually request cancellation at 80% LTV based on the original value; under the Homeowners Protection Act, lenders must automatically terminate most PMI by 78% LTV if you are current.

Does a bigger down payment always win?+

Often yes for PMI, because 20% down removes it entirely. Still compare the cash locked in a larger down payment against investing or keeping reserves.

What sets the PMI rate?+

Credit score, LTV, loan type, and insurer pricing. Higher LTV and weaker credit usually mean a higher annual percent of the loan.

How should I use this result?+

Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.

How often should I refresh assumptions?+

Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.

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