PMI Calculator – Private Mortgage Insurance

Estimate your monthly PMI cost, see when PMI will automatically fall off, and compare strategies to remove PMI faster.

PMI Calculator

$
$

Amount

%

Percent

%
%

Typical range: 0.3% – 1.5% depending on credit & LTV.

Optional: Remove PMI faster

$
$

Key results

Base scenario (no extra payments)

Loan amount
$360,000
Starting LTV
90%
Monthly principal & interest
$2,278
Monthly PMI
$210
Total PMI paid until 78% LTV
$7,560
Estimated PMI end date
Month 36

With extra payments

Using your extra monthly and lump-sum amounts

PMI end date with extras
–
Months of PMI saved
–
PMI dollars saved
–

PMI assumptions

  • PMI charged monthly as a fixed percentage of original loan balance.
  • PMI automatically cancels at 78% loan-to-value (LTV) based on original value.
  • You may be able to request removal earlier at 80% LTV.

What is Private Mortgage Insurance (PMI)?

Private Mortgage Insurance (PMI) is an insurance policy that protects the lender, not you as the borrower, if you stop making payments on a conventional mortgage. Lenders typically require PMI when your down payment is less than 20% of the home’s purchase price.

PMI makes it possible to buy a home with as little as 3–5% down, but it increases your monthly housing cost. Knowing how much PMI you’ll pay and when it will end helps you decide whether a lower down payment is worth it.

How this PMI calculator works

This tool estimates your PMI cost and the month when PMI will drop off, using standard U.S. conventional loan rules. It also lets you test extra payments to see how quickly you can remove PMI and how much you could save.

Step 1 – Loan amount and LTV

The calculator first computes your loan amount and loan-to-value ratio (LTV):

Loan amount = Home price − Down payment

Down payment % = Down payment ÷ Home price

LTV = Loan amount ÷ Home price

If your LTV is above 80% (down payment below 20%), PMI is assumed to apply. If your LTV is 80% or lower, the calculator shows PMI as $0 because it’s typically not required.

Step 2 – Monthly mortgage payment (principal & interest)

Your base mortgage payment (without PMI, taxes, or insurance) is calculated using the standard amortizing loan formula:

Monthly interest rate: \( r = \dfrac{\text{annual rate}}{12} \)

Number of payments: \( n = \text{years} \times 12 \)

Monthly payment (principal & interest):
\( P = L \times \dfrac{r(1+r)^n}{(1+r)^n - 1} \)

where \( L \) is the loan amount.

Step 3 – PMI cost

PMI is usually quoted as an annual percentage of the original loan amount. The calculator uses your PMI rate input to compute:

Annual PMI = Loan amount × (PMI rate ÷ 100)

Monthly PMI = Annual PMI ÷ 12

In reality, PMI pricing depends on your credit score, LTV, loan type, and other risk factors. If you know your exact PMI rate from a lender quote, enter it for more accurate results.

Step 4 – When does PMI end?

For most U.S. conventional mortgages covered by the Homeowners Protection Act (HPA):

  • Automatic cancellation occurs when your scheduled loan balance reaches 78% LTV of the original home value, assuming you’re current on payments.
  • Borrower-requested cancellation is usually possible at 80% LTV, if you have a good payment history and can document the home’s value.

The calculator simulates your amortization schedule month by month to find when your balance falls below 78% LTV (and 80% LTV), both with and without extra payments.

Interpreting your PMI results

Key outputs

  • Loan amount – How much you’re borrowing after your down payment.
  • Starting LTV – Your initial loan-to-value ratio; above 80% usually means PMI is required.
  • Monthly principal & interest – Your base mortgage payment, excluding PMI, taxes, and insurance.
  • Monthly PMI – Estimated PMI charge added to your payment until PMI is removed.
  • Total PMI paid – Sum of all PMI payments until the automatic cancellation point (78% LTV).
  • PMI end date – The month when your balance is projected to reach 78% LTV.

With extra payments

When you enter an extra monthly principal amount or a one-time lump sum, the calculator recomputes your amortization schedule and shows:

  • New PMI end date – How much earlier PMI could drop off.
  • Months of PMI saved – How many PMI payments you avoid.
  • PMI dollars saved – Approximate reduction in total PMI cost.

This helps you decide whether it’s worth making extra payments specifically to eliminate PMI sooner.

Strategies to reduce or avoid PMI

1. Increase your down payment

The simplest way to avoid PMI is to put 20% or more down. Even moving from 5% to 10% down can significantly reduce your PMI rate and total cost.

2. Improve your credit score

Lenders price PMI based on risk. A higher credit score can qualify you for a lower PMI rate. Paying down revolving debt, avoiding new credit inquiries, and correcting errors on your credit report can all help.

3. Choose a shorter loan term

A 15-year loan has higher monthly payments but pays down principal much faster, which means you reach 80% and 78% LTV sooner and pay PMI for fewer months.

4. Make targeted extra payments

Even modest extra principal payments—like $50–$200 per month—can move your PMI end date up by months or even years. Use the “extra monthly” and “lump sum” fields to see the impact for your situation.

5. Refinance when your equity grows

If home values in your area have risen or you’ve paid down a lot of principal, refinancing into a new loan with LTV ≤ 80% can eliminate PMI. Compare closing costs against the PMI savings and any interest-rate changes.

Limitations and assumptions

  • The calculator assumes a fixed-rate, fully amortizing conventional mortgage.
  • PMI is modeled as a constant percentage of the original loan amount, charged monthly.
  • Property taxes, homeowners insurance, HOA dues, and other costs are not included.
  • Actual PMI pricing and cancellation rules vary by lender, investor, and jurisdiction.

Always confirm details with your lender or mortgage professional before making financial decisions.

PMI FAQs