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PMI Calculator
Estimate how much private mortgage insurance could add to your monthly housing payment and how long you may carry it before reaching common cancellation thresholds.
Estimated Monthly PMI
$223.12
Loan-to-Value at Closing
90.0%
Principal & Interest
$2,480.89
Payment + PMI
$2,704.01
PMI cancellation checkpoints
Request cancellation near
Month 98
This is the first month the estimated balance reaches 80% of the original home value with normal amortization.
Automatic termination near
Month 112
Federal cancellation rules vary by loan type and payment history, so treat this as a planning estimate rather than a servicing promise.
PMI estimate, not a quote
Actual PMI pricing depends on credit score, loan program, occupancy, debt-to-income, and whether the insurer uses monthly, split-premium, or single-premium pricing.
Down payment comparison
Same home price, same rate, different PMI exposure.
5% down
$21,250.0010% down
$42,500.0015% down
$63,750.0020% down
$85,000.00EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
Calculation notes and example
How this PMI estimate is calculated
The calculator first subtracts the down payment from the home price to find the starting conventional mortgage balance. Estimated annual PMI equals that balance multiplied by the annual PMI rate you enter; monthly PMI is the annual amount divided by 12. The cancellation timeline then runs the fixed-rate amortization schedule forward until the unpaid principal reaches 80% and 78% of the original home value. Those checkpoints model scheduled principal reduction only, not a new appraisal, extra payments, or a servicer's eligibility review.
PMI and down-payment example
For a $425,000 home with 10% down, the starting loan is $382,500 and the starting loan-to-value ratio is 90%. At an assumed 0.70% annual PMI rate, estimated PMI is about $2,678 per year, or $223 per month. A 15% down-payment case starts with a smaller balance and lower PMI cost, while 20% down sets the calculator's PMI estimate to zero. Compare the extra cash required at closing with the monthly savings and the reserves you would retain.
PMI assumptions to verify
- Use the PMI rate from a written lender quote when available; credit profile, occupancy, loan type, and insurer pricing can move the premium materially.
- The 80% and 78% dates are based on the original value and scheduled amortization. Borrower-request, automatic-termination, payment-history, seasoning, and appraisal rules can differ.
- FHA and USDA mortgage insurance follow different premium and cancellation rules, so this conventional-PMI model is not a substitute for those program calculations.
Useful companion tools: Mortgage Calculator, Mortgage Affordability Calculator, Closing Cost Calculator, and Down Payment Calculator.
How to interpret the pmi result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this pmi estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
Sources used for this calculator
These primary or official references help define the rules, terminology, safety checks, or source documents behind this estimate. Source links were checked in July 2026. They do not turn the calculator output into a quote, appraisal, tax determination, or professional opinion.
- When can I remove private mortgage insurance (PMI)?
Consumer Financial Protection Bureau
Explains the federal 80% borrower-request and 78% automatic-termination rules for many conventional mortgages.
- Loan Estimate explainer
Consumer Financial Protection Bureau
Use the lender's Loan Estimate to verify payment, APR, taxes, insurance, closing costs, and cash-to-close inputs.
How to Use
- Enter the home price, down payment percentage, mortgage rate, and loan term you are considering.
- Set the annual PMI rate from a lender quote or use a reasonable planning estimate if you are still shopping.
- Review the estimated monthly PMI, payment with PMI included, and the starting loan-to-value ratio.
- Use the cancellation checkpoints to see when a larger down payment might remove PMI faster or avoid it entirely.
Frequently Asked Questions
What is PMI?
PMI stands for private mortgage insurance. It is commonly required on conventional loans when the buyer puts down less than 20%, and it increases the all-in monthly payment until enough equity is built.
How much does PMI usually cost?
A rough planning range is about 0.3% to 1.5% of the loan amount per year, but the actual premium depends on credit score, occupancy, debt-to-income, loan type, and the insurer's pricing structure.
When can PMI be removed?
For many conventional loans, borrowers can request cancellation around 80% original loan-to-value and automatic termination may happen around 78%, but exact rules depend on payment history and servicing guidelines.
Does FHA mortgage insurance work the same way?
Not exactly. FHA loans use mortgage insurance premiums with different rules, including upfront and annual components, so this page is best used for conventional PMI planning rather than FHA pricing.
Is it better to wait and put 20% down?
Sometimes, but not always. Avoiding PMI lowers the payment, yet waiting can also mean higher home prices or more months of rent. The right move depends on your market, rate, cash reserves, and timeline.
Related Calculators
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Run the underlying principal-and-interest payment and long-term loan cost.
Down Payment Calculator
Compare how different cash-down levels change PMI, closing costs, and upfront cash.
Closing Cost Calculator
Add the upfront closing table to the monthly PMI impact when planning cash to buy.
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