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PMI Calculator

Estimate the monthly cost of private mortgage insurance for a low-down-payment conventional loan, and when it auto-cancels.

Auto-cancel estimate uses the 80% LTV threshold of the original home value, the standard the Homeowners Protection Act applies.

$
$
%
%
yr
Monthly PMI
$180
LTV is 90.0% — PMI is required until the scheduled balance reaches 80% of the original price.
Loan amount
$360,000
LTV
90.0%
Annual PMI
$2,160
Estimated time to auto-cancel
7 yr 11 mo
Total PMI until cancel
$17,100
Overview

How the PMI Calculator Works

Private mortgage insurance (PMI) protects the lender — not you — when your down payment is less than 20%. It typically costs 0.3%–1.5% of the loan balance per year. This calculator estimates the monthly premium and projects roughly when it will auto-cancel based on standard amortization.

Formula

The Math Behind the Calculator

Monthly PMI ≈ (Loan balance × PMI annual %) ÷ 12. PMI is required when LTV > 80%, where LTV = Loan ÷ Home price. PMI typically auto-cancels when the scheduled balance reaches 78% of the original home value (or you can request removal at 80%).

Example

A Worked Example

On a $400,000 home with $40,000 down ($360,000 loan, 90% LTV) at a 0.6% PMI rate: monthly PMI ≈ $180. At a 6.5% mortgage rate on a 30-year term, the loan reaches 80% of the original home value (about $320,000 balance) after roughly 6–7 years, at which point PMI should drop off automatically.

How to use

How to Use the PMI Calculator

  1. 1Enter the home price and your down payment.
  2. 2Enter the PMI annual rate quoted on your loan estimate (commonly 0.3%–1.5%, depending on credit and LTV).
  3. 3Enter the mortgage rate and term so the calculator can estimate when PMI auto-cancels.
  4. 4Compare the total PMI cost against what a larger down payment would cost in opportunity-cost terms.
Interpretation

What the Results Mean

  • Monthly PMI is added to your principal, interest, taxes, and insurance — it's a real line item on your payment.
  • Months until cancel is when the loan amortizes down to 78% of original value; that's when servicers must drop PMI automatically.
  • Total PMI paid is what you'll spend before cancellation if you make scheduled payments only — extra principal accelerates removal.
Avoid

Common Mistakes to Avoid

  • Assuming PMI cancels at 20% of current market value — by federal rule it's based on the original price unless you request a new appraisal.
  • Forgetting that FHA mortgage insurance (MIP) does not cancel the same way — many FHA loans require MIP for the full term.
  • Ignoring that paying extra principal can remove PMI years earlier and save thousands.
Keep going

Related Calculators

Down Payment Calculator

Calculate the down payment, loan amount, and loan-to-value ratio for any home price — and see how far you are from the 20% threshold that avoids PMI.

Mortgage Payment Calculator

Estimate your monthly mortgage payment including principal, interest, property taxes, insurance, HOA, and PMI.

Mortgage Affordability Calculator

See the maximum home price you can responsibly afford based on income, debts, down payment, and current rates.

Extra Mortgage Payment Calculator

See how much interest and time you save by adding extra principal to your monthly mortgage payment.

FAQ

Frequently Asked Questions

Is PMI tax-deductible?+

It has been in some past years; deductibility depends on current tax law and your income. Check the latest IRS guidance or ask a tax professional.

Can I cancel PMI early?+

Yes. You can request cancellation once your loan balance reaches 80% of the original value, and servicers must auto-cancel at 78%. A new appraisal showing 20% equity from market gains can also work.

Is lender-paid PMI better?+

Lender-paid PMI bundles the cost into a higher interest rate that never cancels. It can win short-term, but borrower-paid PMI usually wins if you'll hold the loan many years.

Financial Disclaimer

This calculator is for educational and estimation purposes only. It does not provide financial, mortgage, tax, investment, or legal advice. Actual rates, payments, taxes, fees, insurance costs, eligibility, and loan terms vary by lender, location, credit profile, and market conditions. Always compare official offers and consult a qualified professional before making financial decisions.

Last updated June 2026 · Prepared by the mCalculator Editorial Team