Mortgage Insurance (PMI) Calculator
Calculate your monthly PMI cost, see exactly when PMI is removed at 80% LTV, and download a full amortization report with both payment phases.
PMI is required when down payment is below 20% (LTV > 80%).
Typical PMI ranges from 0.5%–1.5% annually. Set to 0 to exclude PMI.
| Year | Total Paid | Principal | Interest | PMI | Balance |
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How to Use the PMI Calculator
In under two minutes you’ll see your full monthly payment with PMI, exactly when PMI drops off, and the total dollar cost of PMI over the life of the loan — so you can decide whether a larger down payment is worth it.
Enter Home Price & Down Payment
Input the home purchase price and your down payment percentage (3%–30%). The calculator immediately shows whether PMI applies — it’s triggered any time your down payment is less than 20%, meaning the loan-to-value ratio exceeds 80%. Drag the range slider to quickly explore different down payment scenarios side by side.
Set Loan Term & Interest Rate
Choose your loan term (10–30 years) and enter your interest rate. These determine how quickly you build equity through principal paydown, which directly affects how many months you’ll pay PMI. A higher rate means slower equity build-up and potentially more months paying PMI — the calculator accounts for this precisely.
Enter Your PMI Rate & Monthly Costs
Enter the annual PMI rate your lender quoted (typically 0.2%–2.0% depending on your credit score and down payment). Then add your annual property tax and homeowners insurance to see the complete monthly payment — not just principal, interest, and PMI in isolation.
Review the Full PMI Summary & Download PDF
The results panel shows your complete monthly payment breakdown, the month PMI is removed, total PMI paid, and a year-by-year amortization table with PMI-active years clearly marked. Download the 2-page PDF report to compare multiple scenarios or share with a mortgage professional.
What This Calculator Shows You
Most mortgage calculators ignore PMI entirely or treat it as a fixed monthly addition. This calculator models PMI precisely — including the exact month it’s removed based on your amortization schedule — so you know the true total cost of a low-down-payment loan.
Total Monthly Payment (with PMI)
Your complete monthly housing cost during the PMI period — principal & interest, PMI premium, property tax, and homeowners insurance all combined. The PMI badge turns red when PMI is active, giving you an instant visual signal of the extra cost you’re carrying each month.
Monthly PMI Cost & Total PMI Paid
The exact monthly PMI premium and the cumulative total you’ll pay from closing until the removal date. This total is the “real cost” of choosing a lower down payment — and it’s often far higher than borrowers expect. On a $380,000 loan with 5% down at 0.7% PMI, the total PMI paid can exceed $25,000.
PMI Removal Month & Lower Payment After
The exact month your loan balance drops to 80% LTV and PMI is removed — shown as both a year/month and a month number. The summary card shows your new lower monthly payment after PMI cancellation, so you can see the immediate cash-flow relief at that milestone.
Loan Balance Over Time (Chart)
A line chart tracking your outstanding balance over the full loan term, with the 80% LTV threshold marked as a reference line. The point where the balance line crosses the threshold is the PMI removal date — visualised clearly so you can see how rate and down payment changes affect the timeline.
Payment Breakdown Donut Chart
A donut chart showing your initial monthly payment split across four components: principal & interest, PMI, property tax, and homeowners insurance. PMI’s share of the total is immediately visible — a powerful reminder that a significant portion of your housing cost is going toward lender protection, not equity.
Yearly Amortization Schedule with PMI Rows
A complete year-by-year table for the full loan term, with PMI-active years highlighted in blue. Each row shows annual totals for principal paid, interest paid, PMI paid, and remaining balance. Expanding this accordion gives you the granular data you need to model extra payments or verify your lender’s PMI removal timeline.
PMI in Numbers
Three Borrowers Who Need This Calculator
PMI affects millions of homebuyers every year — but whether it’s the right trade-off depends on your situation. These three profiles show when accepting PMI makes financial sense and when avoiding it is worth the extra down payment.
You have 5–10% saved but not 20%. PMI lets you buy now rather than wait another 3–5 years to save the full down payment — during which home prices may rise further. Use this calculator to see the exact monthly PMI cost and total PMI paid, then compare it to the cost of continued renting plus projected home price appreciation. Often, buying with PMI wins — but the numbers need to be run.
- Use the calculator to compare 5%, 10%, and 15% down payment scenarios — see how each changes total PMI paid
- Ask your lender for the exact PMI rate before calculating — rates vary by credit score and loan program
- Check whether extra principal payments in the first few years could meaningfully accelerate PMI removal
You’re already in your home and paying PMI. You want to know exactly when it drops off on your current amortization schedule — and whether making extra payments or requesting a new appraisal (to capture appreciation) could remove it faster. Plug in your current loan balance, home value, and remaining term to get a precise removal date and evaluate whether acceleration is worth it.
- Enter your current outstanding balance as the loan amount to get an accurate removal timeline from today
- If your home has appreciated, a new appraisal may push you past 80% LTV — contact your servicer to initiate cancellation
- The Homeowners Protection Act requires your lender to automatically cancel PMI at 78% LTV — verify this is happening on schedule
You have enough saved for 20% but are weighing whether to put less down, keep cash in reserve, and pay PMI instead. Run both scenarios: 20% down with no PMI vs 10% down with PMI. Compare the total PMI cost against what you could earn investing the withheld down payment at your expected return rate. At low mortgage rates, keeping cash invested often wins. At higher rates, the bigger down payment frequently does.
- Compare total PMI paid over the removal period against expected investment returns on the withheld capital
- Factor in the opportunity cost of liquidity — 20% down leaves you with less cash buffer for repairs or emergencies
- Consider lender-paid PMI (LPMI) as a third option — no monthly PMI but a higher rate; use this calculator to see the break-even
7 Things Every PMI Borrower Should Know
PMI is one of the most misunderstood costs in homebuying. These tips will help you calculate it accurately, understand your legal rights to cancel it, and make a smarter decision about your down payment.
PMI Is Calculated on the Original Loan Amount, Not the Current Balance
A common misconception: PMI does not decrease as your loan balance falls. The monthly PMI premium is fixed at origination — calculated as your annual PMI rate multiplied by the original loan balance, divided by 12. On a $380,000 loan at 0.7% PMI, that’s $221.67/month from month 1 until the day PMI is cancelled, regardless of how much principal you’ve paid down. This is why total PMI paid can be significant even on loans that are paid on time.
You Have a Legal Right to Cancel PMI — Your Lender Must Tell You How
The federal Homeowners Protection Act (HPA) gives you two key rights: the right to request PMI cancellation when your balance reaches 80% of the original purchase price, and the right to automatic cancellation when it reaches 78%. To request early cancellation at 80% LTV, you must have a good payment history, be current on payments, and in some cases provide evidence that the property value hasn’t declined. Your servicer is required by law to provide PMI cancellation procedures in writing at closing and annually.
Home Appreciation Can Remove PMI Faster — But It Requires a New Appraisal
If your home has increased in value since purchase, your current LTV ratio may already be below 80% — even if your loan balance hasn’t reached that point based on the original purchase price. Most lenders will accept a new appraisal to establish a higher current value. If the appraisal brings your LTV below 80%, you can request PMI removal without waiting for the amortization schedule to catch up. The appraisal typically costs $400–$700, which pays off quickly if it eliminates $200+/month in PMI.
FHA Loans Are Different — MIP Often Lasts the Life of the Loan
FHA mortgage insurance premium (MIP) operates under different rules than conventional PMI. For FHA loans originated after June 2013 with a down payment below 10%, MIP is required for the entire loan term — it never cancels. If you put down 10% or more on an FHA loan, MIP cancels after 11 years. If you’re considering FHA financing, this calculator’s PMI model does not apply. For FHA loans, factor in MIP for the full loan term when calculating affordability, or plan to refinance into a conventional loan once you reach 20% equity.
Your Credit Score Dramatically Affects Your PMI Rate — Check Before Applying
A borrower with a 760+ credit score and 5% down may pay 0.4% annually in PMI. The same loan with a 640 credit score could attract a PMI rate of 1.5% or higher — nearly four times as much. On a $400,000 loan, that’s the difference between $133/month and $500/month in PMI, or roughly $30,000 versus $112,000 in total PMI paid over the removal period. If your score is below 720, consider whether spending 6–12 months improving it before buying could dramatically reduce your PMI burden.
Making Extra Principal Payments Accelerates PMI Removal
Every extra dollar of principal you pay directly reduces your loan balance and moves up the 80% LTV threshold date. On a $380,000 loan at 6.5% with 5% down, an extra $200/month toward principal can remove PMI approximately 2–3 years earlier — saving $5,000–$7,000 in PMI premiums. This calculator models standard amortization only, but you can simulate prepayment by running the calc with a shorter loan term and proportionally larger payment to estimate the effect. A dedicated prepayment calculator gives more precision.
Download the PDF and Compare Multiple Down Payment Scenarios Before You Offer
Before making an offer on a home, run this calculator with three scenarios: your minimum viable down payment, a middle-ground amount, and 20%. Download a PDF for each. The reports clearly show total PMI paid, removal month, initial payment, and post-PMI payment for each scenario — giving you a concise, side-by-side comparison to share with your lender and use in your affordability analysis. Understanding these numbers before you’re in contract gives you negotiating clarity and prevents post-closing payment shock.
Frequently Asked Questions
Everything you need to know about how PMI works, how this calculator models it, and how to use the results to make a smarter down payment decision.
Disclaimer: All results produced by the PMI Calculator are estimates for educational and planning purposes only. This calculator models PMI removal based on scheduled amortization reaching 80% of the original purchase price and does not account for home value appreciation, extra principal payments, lender-specific cancellation requirements, or mid-term refinancing. Actual PMI cancellation is governed by your loan servicer’s policies, the Homeowners Protection Act, and your original loan documents. FHA mortgage insurance premium (MIP) operates under separate rules and is not modelled by this calculator. PMI rates used in calculations are estimates only — your actual rate will be set by your lender at origination based on your credit profile, loan type, and down payment. Always consult your loan servicer and a licensed mortgage professional before making financing decisions.