PMI Calculator
Estimate your monthly private mortgage insurance (PMI), your loan-to-value ratio (LTV), and when PMI could come off a conventional loan. This page uses published planning ranges, a custom lender-quote field, and removal milestones that matter in real life.
What you’ll get
A practical PMI estimate, not a fake precision number. You’ll see a published low-to-high range, your custom quote if you have one, and the equity milestones that matter.
Best use case
Buying with less than 20% down on a conventional mortgage and trying to decide whether PMI is manageable, avoidable, or worth paying temporarily.
Important note
This tool is for conventional PMI. FHA loans use MIP, not PMI. If you already have a lender quote, enter it below for a more useful result.
Borrowers can generally request PMI cancellation when their loan balance reaches 80% of the home’s original purchase price or appraised value. Automatic termination is required at 78% — provided the loan is current and other lender requirements are met. FHA loans follow different rules.
PMI Calculator
Use the published PMI ranges first. If your lender already gave you a PMI percentage, enter it too. The calculator will also estimate when you hit 80% and 78% LTV on the original purchase price.
Worked example
A $350,000 home with $35,000 down means a $315,000 loan and 90% LTV. That is exactly the kind of setup where PMI often shows up. If your quoted PMI is 0.80%, that is about $210 per month. If your goal is to avoid PMI entirely, you would need about $35,000 more down to hit 20%.
How PMI works in plain English
PMI stands for private mortgage insurance. It is usually tied to conventional mortgages when you buy with less than 20% down. It protects the lender, not you. The most common way it shows up is as a monthly premium inside your mortgage payment, and lenders disclose it on the Loan Estimate and Closing Disclosure.
That sounds annoying, but PMI is not automatically a deal-breaker. For a lot of first-time buyers, PMI is the price of buying earlier instead of waiting years to save a full 20% down payment. The real question is not “Is PMI bad?” The real question is “Does this payment still fit my life, and what is my exit plan?”
PMI is not MIP
PMI belongs to conventional loans. FHA uses mortgage insurance premium (MIP), which has different rules and can stick around much longer. Do not mix those up when you compare loans.
LTV is the hinge
PMI and PMI removal revolve around loan-to-value ratio (LTV). If you do not know your LTV, you are basically guessing. Next read: Loan-to-Value Ratio (LTV) Explained.
What changes your PMI the most
1) Down payment
Less money down usually means higher LTV, which usually means higher PMI. That is why the jump from 3% down to 10% down can matter a lot, even before you get anywhere near 20%.
2) Credit profile
Stronger credit usually helps. We do not fake an exact price here because lenders and mortgage insurers price risk differently, but weaker credit generally pushes PMI higher.
3) Loan size
PMI is priced off the loan amount, so a bigger mortgage usually means a bigger PMI bill even if the PMI percentage stays the same.
4) Loan type
Conventional PMI behaves differently from FHA MIP. Some low-down-payment conventional programs can be worth comparing carefully against FHA, especially if you think you can remove PMI faster.
| Planning input | Why it matters | Where to use it |
|---|---|---|
| Loan amount | PMI is charged against the borrowed amount, not the full home price | This calculator + Mortgage Affordability Calculator |
| Down payment | Lower down payment usually means higher LTV and more PMI pain | Down Payment Calculator |
| Cash needed at closing | Sometimes buyers avoid PMI on paper but empty the bank account to do it | Cash to Close Calculator |
| Closing costs | You can hit 20% down in theory and still be underprepared for the actual closing bill | Closing Costs Calculator |
How to lower, avoid, or remove PMI
- Put more down now. The obvious move. More down lowers your loan amount and can remove PMI entirely once you reach 20% down on many conventional loans.
- Use the lender quote, not internet guesses. The calculator’s published range is for planning. Your actual lender quote should decide the real budget.
- Know your 80% and 78% milestones. On many mortgages, you can request cancellation at 80% of the original value if you are current, and automatic termination generally kicks in at 78% under the federal rules that apply to many loans.
- Do not confuse “can qualify” with “should do”. Stretching to avoid PMI can leave you house-poor. A smaller down payment plus a strong emergency fund can sometimes be smarter than draining cash to dodge PMI.
- Consider strategy pages next. Read next: How to Remove PMI From Your Mortgage and 80-10-10 Piggyback Loan Explained.
Vetted sources behind this page
Best tools + best videos
Best internal tools first
Mortgage Affordability Calculator
Down Payment Calculator
Closing Costs Calculator
Cash to Close Calculator
How Much House Can I Afford in 2026?
Best external tools
Video: PMI basics from Freddie Mac
A clean consumer-level overview from Freddie Mac on what PMI is and why it exists.
Video: How to remove mortgage insurance
Use this after you understand the calculator. It is the logical next step if you already have PMI and want a removal plan.
FAQ
Do I always pay PMI if I put less than 20% down?
On many conventional loans, usually yes. That is the normal planning assumption. The exact structure can vary, so use the lender quote when you have it.
How much does PMI usually cost?
Freddie Mac says a rough consumer planning range is about $30 to $70 per month for every $100,000 borrowed. Fannie Mae says PMI is calculated as a percentage of the loan amount and published a typical 2022 range of about 0.58% to 1.86% annually. Your actual quote can land somewhere inside or outside a planning range depending on the loan and borrower profile.
When can PMI come off?
For many covered mortgages, you can request cancellation when your balance reaches 80% of the home’s original value if you are current, and it generally must automatically terminate at 78%. There is also a midpoint rule in many cases. This page estimates those milestones for planning.
Does PMI protect me?
No. PMI protects the lender if you default. It does not work like homeowners insurance.
Should I wait to buy until I can put 20% down?
Not automatically. Sometimes waiting is smart. Sometimes PMI is worth paying for a while. The better test is whether the full monthly cost fits your life without crushing your savings, cash flow, and repair buffer.
Next steps + internal links
Read next in this cluster:
- How Much House Can I Afford in 2026? (Real Budget Method)
- Mortgage Affordability Calculator
- Down Payment Calculator
- Closing Costs Calculator
- Cash to Close Calculator
- What Is a Good Debt-to-Income Ratio for a Mortgage?
- How to Improve Your Credit Score Fast for Home Buying
- Rent vs Buy in 2026 (Real Math Breakdown)
- How to Remove PMI From Your Mortgage
Disclosure
Related Guides
How to Use This Calculator
Enter your loan amount, home value, and estimated PMI rate (typically 0.5%–1.5% of your loan balance per year depending on your credit score and down payment). The calculator shows your monthly PMI cost and the month it disappears based on your amortization schedule.
PMI cancels automatically when your loan balance reaches 78% of the original purchase price. You can also request cancellation at 80% — contact your loan servicer in writing when you hit that threshold.
Disclaimer: This calculator is for educational purposes only. Actual PMI rates vary by lender, loan type, credit score, and loan-to-value ratio. Contact your lender or loan servicer for your exact PMI rate and cancellation policy.
Sources
- Consumer Financial Protection Bureau (CFPB)
- FDIC — Consumer Resource Center
- Federal Trade Commission — Money
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