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PMI Calculator
See how much private mortgage insurance adds to your payment and when it falls off. Enter your home price, down payment, rate and PMI rate, then press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Loan-to-value over time
LTV 80% cutoff
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How the PMI calculator works
When you buy a home with less than 20 percent down, the lender treats the loan as higher risk and adds private mortgage insurance to your monthly bill. This tool takes your loan amount, multiplies it by the annual PMI rate, and divides by twelve to show the first month of insurance. It then amortizes the mortgage one month at a time, tracking your loan-to-value ratio as the balance falls.
The chart plots that loan-to-value ratio over the life of the loan against the dashed 80 percent line where PMI can be removed. Watching the curve cross that line tells you at a glance how many years you are likely to carry the extra cost.
A quick example
Suppose you buy a $350,000 home with $35,000 down, a 30-year loan at 6.5 percent, and a PMI rate of 0.7 percent. Your loan is $315,000, which is 90 percent of the price, so PMI applies. The first monthly premium is about $184, and at this pace the balance reaches the 80 percent mark a little before year six, after which the charge should drop away, saving you a few thousand dollars in total.
Things to keep in mind
Lenders set PMI rates based on your credit score and down payment, so the rate you are quoted may differ from a default estimate. For the federal rules on automatic cancellation, see the CFPB guidance on removing PMI. To see how the whole payment, including principal and interest, fits your budget, pair this with our mortgage calculator.
Frequently asked questions
What is PMI and why do lenders charge it?
PMI stands for private mortgage insurance. On a conventional loan it is usually required when your down payment is less than 20 percent of the home price. It protects the lender, not you, if you stop making payments. Once you build enough equity the lender no longer needs that protection and the charge goes away.
How is the monthly PMI premium calculated?
Most lenders quote PMI as an annual rate, often between 0.3 and 1.5 percent, applied to the loan balance. To get the monthly cost you multiply the loan balance by the annual rate and then divide by twelve. Because the balance shrinks as you pay down the loan, the dollar amount of PMI slowly falls over time.
When does PMI automatically come off?
Under federal rules a lender must automatically cancel PMI once the loan is scheduled to reach 78 percent of the original home value, and you can request removal at 80 percent. This calculator amortizes your loan and shows the month the balance crosses the 80 percent mark so you know roughly when PMI should stop.
How can I avoid paying PMI?
The most direct way is to put at least 20 percent down so PMI is never charged. Other options include making extra principal payments to reach the 80 percent threshold sooner, asking for a new appraisal if your home value has risen, or refinancing once you have enough equity. Some lender-paid PMI loans roll the cost into a slightly higher interest rate instead.
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