PMI Cost Calculator
Estimate monthly private mortgage insurance, the total PMI you will pay before it is cancelled at 80%, 78% or with a new appraisal, and how much equity or extra payments it takes to get rid of it.
How it works
Monthly PMI = loan × annual PMI rate ÷ 12 · LTV = loan ÷ home value · Pay-down to cancel = loan − 80% × value · Total PMI = monthly PMI × payments until the balance reaches 80% (on request) or 78% / the loan midpoint (automatically)
Lenders require private mortgage insurance on a conventional loan when the loan is more than 80% of the home’s value, that is, when you put down less than 20%. PMI protects the lender, not you. It is quoted as a yearly percentage of the original loan, typically 0.3%–1.5% depending mostly on your credit score and loan-to-value, and added to your monthly payment. If you don’t have a quote, choose “Estimate from credit score” to use the average premium for your score band. The true cost of PMI is the monthly premium times the number of months you pay it. Under the Homeowners Protection Act you can ask the 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 loan’s midpoint). The calculator runs your mortgage month by month to find those dates and the total PMI. It also shows how extra principal payments or a rise in value (with a new appraisal) can end it sooner, and what PMI would cost at other loan amounts.
Worked example
A $322,000 loan on a $350,000 home is a 92% LTV. At a 0.6% PMI rate it costs $322,000 × 0.006 ÷ 12 = $161 a month, or $1,932 a year. To cancel it the balance must fall to $280,000 (80% of $350,000), a $42,000 pay-down. With a 6.5% 30-year mortgage that takes 107 payments (almost 9 years), so the PMI costs $17,227 in total if you ask for removal then. Waiting for automatic removal at 78% ($273,000) takes 120 payments and costs $19,320. Paying $200 extra each month reaches 80% after 71 payments and cuts the total to $11,431.
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 cancel PMI?
Ask your servicer in writing once the balance reaches 80% of the original value. You need to be current on payments, 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 new appraisal after your home gains value, can get you there sooner.
How much does PMI cost in total?
Multiply the monthly premium by the number of months you pay it. On a typical loan with 5%–10% down, PMI lasts roughly 7–11 years without extra payments, so the total is often $10,000–$25,000. The table shows how the total changes with a smaller loan-to-value.
What PMI rate should I expect?
Usually 0.3% to 1.5% of the loan per year. Average premiums run from about 0.46% for credit scores of 760 and up to about 1.5% for 620–639, and rise as the down payment shrinks. Pick “Estimate from credit score” if you don’t have a quote.
Does a bigger down payment avoid it?
Yes — putting 20% or more down means no PMI at all on a conventional loan. Even a few percent more down lowers the premium and shortens the time you pay it; the table shows the effect.
Is FHA mortgage insurance the same as PMI?
No. FHA loans carry MIP, with an upfront premium and an annual premium that often lasts the life of the loan. Conventional PMI can be cancelled at 80% LTV. Choose “Never” to see the cost of insurance that is kept for the whole loan.
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This is an educational estimate, not financial advice. Confirm exact figures with your lender, employer or a licensed advisor.