PMI Calculator
Estimate your monthly private mortgage insurance from a PMI rate or your credit score, when it can be removed at 80%, 78% or with a new appraisal, the total you will pay, and how extra payments or a bigger down payment change it.
How it works
Monthly PMI = original loan × PMI rate ÷ 12 · LTV = loan ÷ home value · Request removal when the balance reaches 80% of the original value; automatic at 78% (scheduled) or the loan midpoint
Lenders require private mortgage insurance on a conventional loan when you put down less than 20%, because a smaller cushion means more risk if they must foreclose. PMI protects the lender, not you. It is usually quoted as a yearly percentage of the original loan — typically 0.3–1.5%, depending mostly on your credit score and down payment — and billed monthly. If you don’t have a quote, choose “Estimate from credit score” to use the average premium for your score band. PMI is temporary. Under the Homeowners Protection Act you can ask your servicer to cancel it once the balance reaches 80% of the original value, and it must end automatically when the balance is scheduled to reach 78% (or at the midpoint of the loan, whichever comes first). The calculator runs your loan month by month to find each of those dates. Extra principal payments bring the 80% date forward; the automatic 78% date follows the original schedule. If your home has gained value, a new appraisal can remove PMI sooner on many loans, which the appraisal option estimates.
Worked example
On a $350,000 home with 10% down, the loan is $315,000 — a 90% LTV, so PMI applies. At a 0.6% annual rate that is $315,000 × 0.006 ÷ 12 = $157.50 a month. With a 6.5% 30-year loan the balance reaches 80% of the price ($280,000) after payment 95, about 7.9 years, so you pay $14,962.50 of PMI if you ask to remove it then. Waiting for automatic removal at 78% ($273,000) takes until payment 109 and costs $17,167.50. Paying $200 extra each month reaches 80% after payment 62, cutting total PMI to $9,765.
Sources: CFPB — When can I remove private mortgage insurance (PMI) from my loan? · Fannie Mae Servicing Guide B-8.1-04 — Termination of conventional mortgage insurance · NerdWallet — PMI calculator (Urban Institute average premiums by credit score)
Frequently asked questions
How do I get rid of PMI?
Ask your servicer in writing to cancel it once the balance reaches 80% of the original value; you need to be current, have a good payment history and show the home has not lost value. If you do nothing, it ends automatically when the balance is scheduled to reach 78%, or at the loan’s midpoint. Extra principal payments or a rise in home value (with a new appraisal) can get you there sooner.
How much does PMI cost?
Usually 0.3% to 1.5% of the original loan amount per year, split into monthly payments. The rate depends mostly on your credit score and down payment: average premiums run from about 0.46% a year for scores of 760 and up to about 1.5% for scores of 620–639. The table shows how much a bigger down payment saves.
Can a new appraisal remove PMI early?
Often, yes. For loans owned by Fannie Mae, you can ask for removal based on the current value once the balance is 75% of it after 2 years, or 80% after 5 years. Turn on the appraisal check and enter a yearly growth rate to estimate when that could happen. Check your own servicer’s rules first, and remember that the appraisal costs money.
Is FHA mortgage insurance the same as PMI?
No. FHA loans carry MIP (mortgage insurance premium), which includes an upfront fee and often lasts the life of the loan, whereas conventional PMI can be cancelled at 80% LTV. This calculator models conventional PMI; choose “Never” to see the cost of insurance that is kept for the whole loan.
Is it better to pay PMI or wait until I have 20% down?
It depends on how fast home prices and rents are rising where you live. PMI is often a few thousand dollars in total, as the down-payment table shows, while waiting years to save more can cost more in rent or a higher price. Compare the total PMI here with what waiting would cost you.
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Educational estimate, not financial or real-estate advice. Actual costs, rates and returns vary by lender, market and property.