Finance
PMI Calculator
Monthly PMI is loan × annual PMI rate ÷ 12, charged only while your down payment is under 20%. Enter a price, down payment and PMI rate for the monthly cost, the total you will pay, and the payment when PMI cancels at 80% loan-to-value.
Your home & loan
The purchase price of the home
$
$40,000 down · 10.0% of the price
%
Annual PMI as a percent of the loan — set by credit and LTV
%
The mortgage rate — sets how fast the balance falls
%
Years to repay — 30 and 15 are the common choices
years
Monthly PMI
$150.00
$360,000 loan · 90% LTV · 10% down
Monthly PMI
$150.00
Annual PMI
$1,800
Loan amount
$360,000
Loan-to-value
90.0%
Total PMI to cancel
$14,250
20% down needed
$80,000
PMI drops off
You can request cancellation at payment 95 (7 years 11 months), when the balance reaches 80% of the price. The lender must drop it automatically by payment 109. You will have paid about $14,250 in PMI by then.
Estimate only. Your PMI rate depends on your credit score, loan type and down payment — the lender sets the exact figure.
Try a scenario
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The basics
What is PMI?
Private mortgage insurance is a monthly charge on a conventional loan taken with less than 20% down. Two ideas explain the whole thing.
PMI = loan × rate ÷ 12
It is a percent of the loan
PMI is a fraction of a percent of the loan each year, billed monthly with your payment. The rate the lender sets rides on your credit score, the loan type, and how far under 20% your down payment falls.
$360,000 at 0.50% → $150.00 a month
the 80% line
It ends at 20% equity
PMI is not permanent. Once the balance falls to 80% of the original price you can request cancellation, and the lender must remove it automatically at 78%. At 20% down or more it never applies at all.
Here it cancels at payment 95 — about 7 years 11 months
Method
How to calculate PMI by hand
Four steps take you from a price and a down payment to the monthly cost and when it ends.
- 1
Find the loan amount and LTV
Subtract the down payment from the price for the loan amount L. The loan divided by the price is the loan-to-value — PMI applies only when it is above 80%.
$400,000 − $40,000 = $360,000 · LTV 90.0% - 2
Multiply the loan by the annual PMI rate
The annual PMI cost is the loan amount times the PMI rate the lender quotes. That rate depends on your credit and how much you put down.
$360,000 × 0.50% = $1,800.00 a year - 3
Divide by twelve for the monthly cost
PMI is billed with the mortgage payment, so the annual figure is spread over twelve months.
$1,800.00 ÷ 12 = $150.00 a month - 4
Find the cancellation point
Amortize the loan until the balance reaches 80% of the original price — the point you can request cancellation. The lender must drop PMI automatically at 78%.
balance $320,000 at payment 95 (7 years 11 months)
Worked examples
PMI across down-payment sizes
The same $400,000 home at 6.50% over 30 years and 0.50% PMI. A bigger down payment means a smaller loan, a lower monthly PMI, and a much earlier cancellation.
| Down payment | Loan | PMI / mo | Cancels at | Total PMI |
|---|---|---|---|---|
| 3% | $388,000 | $161.67 | 11 years 1 month | $21,502 |
| 5% | $380,000 | $158.33 | 10 years 4 months | $19,633 |
| 10% | $360,000 | $150.00 | 7 years 11 months | $14,250 |
| 15% | $340,000 | $141.67 | 4 years 8 months | $7,933 |
| 20% | $320,000 | — | no PMI | — |
Where it shows up
Why the number matters
Three moments where PMI is the figure that changes the decision.
PMI vs FHA MIP
Choosing a loan type
A conventional loan with PMI and an FHA loan with MIP cost differently over time. PMI ends at 20% equity; FHA insurance often lasts the whole loan.
Conventional PMI can be cancelled; FHA MIP often cannot
request at 80%
Cancelling PMI
Knowing the cancellation month tells you when to call the lender — or when a new appraisal could remove PMI early if your home has gained value.
Ask at 80% of the original price; automatic at 78%
20% removes it
Sizing the down payment
Comparing PMI at 10% down against no PMI at 20% down shows whether stretching to a bigger down payment is worth it for your budget.
20% down means no PMI at all
Reference
How the down payment sets PMI
General guidance, not a rate quote. The down payment sets the loan-to-value, which decides whether PMI applies and how the lender prices it.
| Down payment | LTV | PMI | What it means |
|---|---|---|---|
| 3% down | 97% LTV | Yes, highest | PMI is charged and is at its highest and longest — the balance has furthest to fall to reach 80%. |
| 5% down | 95% LTV | Yes | PMI still applies but is smaller and drops off sooner than at 3% down. |
| 10% down | 90% LTV | Yes, lower | Modest PMI; the balance reaches the 80% line reasonably quickly. |
| 15% down | 85% LTV | Yes, lowest | The smallest PMI charge, and the shortest — it falls off within a few years. |
| 20% down | 80% LTV | None | No PMI at all. This is the line: at or above 20% down you never pay it. |
Worth knowing
Five things about PMI
None of these show up in the headline rate, and each can be worth real money.
the HPA gives you rights
You can force cancellation
The Homeowners Protection Act lets you request PMI removal at 80% of the original price and requires the lender to drop it automatically at 78%, as long as payments are current.
LPMI trades PMI for rate
Lender-paid PMI
Some lenders offer to fold PMI into a higher interest rate instead of a separate line. There is no PMI to cancel later, so it only wins if you sell or refinance soon.
a new value can help
A reappraisal can end it early
If your home has risen in value, an appraisal that puts the loan-to-value under 80% can remove PMI sooner than the amortization schedule alone would.
extra principal helps
Overpaying reaches 80% faster
Because PMI ends at a balance level, extra principal payments reach the 80% line sooner and cut the total PMI you pay.
FHA is different
FHA MIP is not PMI
FHA loans use a mortgage insurance premium that, for most loans, lasts the life of the loan unless you refinance. Do not treat FHA MIP like cancellable conventional PMI.
protects the lender
It is not your coverage
PMI pays the lender if you default. It buys you nothing but access to a low-down-payment loan, so cancelling it as soon as you can is always the right move.
Quick chart
Monthly PMI by loan amount and rate
Read the monthly PMI for a loan amount at every common PMI rate. Add it to your principal, interest, tax and insurance for the full payment while PMI applies.
| Loan amount | 0.30% | 0.50% | 0.70% | 0.90% | 1.10% |
|---|---|---|---|---|---|
| $150,000 | $37.50 | $62.50 | $87.50 | $112.50 | $137.50 |
| $250,000 | $62.50 | $104.17 | $145.83 | $187.50 | $229.17 |
| $350,000 | $87.50 | $145.83 | $204.17 | $262.50 | $320.83 |
| $450,000 | $112.50 | $187.50 | $262.50 | $337.50 | $412.50 |
| $550,000 | $137.50 | $229.17 | $320.83 | $412.50 | $504.17 |
| $700,000 | $175.00 | $291.67 | $408.33 | $525.00 | $641.67 |
Monthly PMI = loan × annual PMI rate ÷ 12. PMI applies only while the down payment is under 20%.
How we calculate this
The formula and our assumptions
The monthly cost is a simple percent of the loan; the cancellation month comes from amortizing the loan to the 80% line. We show the working so you can check it.
PMI = loan × rate ÷ 12
The monthly cost
The loan amount times the annual PMI rate is the yearly cost; dividing by twelve gives the amount added to each payment while the down payment is under 20%.
cancel at 80%, auto at 78%
When it ends
We amortize the loan and find the first payment where the balance falls to 80% of the original price — the request point. Automatic termination is set at 78%.
- PMI is a flat annual percent of the original loan; some lenders re-rate it yearly on the balance.
- Cancellation is based on the original purchase price, not a later appraised value.
- The rate is fixed for the life of the loan; adjustable-rate loans are not modelled.
- FHA mortgage insurance (MIP) follows different rules and is not modelled here.
Where to shop
Where to get a low-PMI loan
Rows are ordered by borrower fit, not by any payout — the option that suits your situation comes first. PMI and rates are shown as ranges only; get an exact quote, because pricing depends on your credit, the property and the day.
| Where | Examples | Best for | Typical pricing |
|---|---|---|---|
| Online marketplace | LendingTree, Credible | Comparing PMI and rates across lenders at once | Market range |
| Direct lender / bank | Rocket, Chase, local banks | An existing banking relationship | Market range |
| Credit union | Member-owned lenders | Lower fees and often lower PMI | Often below market |
| Lender-paid PMI (LPMI) | Offered by most lenders | A single higher rate instead of a separate PMI line | Rate is higher, no PMI line |
CalculateThis.io is not a lender and does not make credit decisions. When we add lender links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the rate you are offered.
Sources
Where the method comes from
- Consumer Financial Protection Bureau — PMI basics and cancellation rules.
- Homeowners Protection Act (HPA) — the 80% request and 78% automatic cancellation thresholds.
- Standard amortization formula for a fixed-rate, fully amortizing loan.
FAQ
Common questions
Monthly PMI is the loan amount times the annual PMI rate, divided by twelve. On a $360,000 loan at 0.50% that is $1,800 a year, or $150.00 a month. The rate itself is set by your credit score, the loan type and how much you put down — a lender quotes a figure between about 0.3% and 1.5% of the loan.
On a conventional loan you can request cancellation once the balance reaches 80% of the original price. On the $400,000 example with 10% down that happens at payment 95 — about 7 years 11 months in. The lender must drop PMI automatically at 78% of the price, which here is payment 109. By the 80% point this loan would have paid roughly $14,250 in PMI.
Twenty percent of the price. On a $400,000 home that is $80,000. At or above 20% down the loan-to-value starts at 80% or lower, so PMI is never charged. Below 20% you pay PMI until the balance falls to that same 80% line.
PMI usually runs between about 0.3% and 1.5% of the loan a year. The exact figure depends on your credit score, the size of the down payment and the loan program. A strong credit score with 10-15% down lands near the bottom of that band; a low score with 3% down sits near the top.
No. PMI applies to conventional loans and can be cancelled once you reach 20% equity. FHA loans charge a separate mortgage insurance premium (MIP) that, for most loans since 2013, lasts the life of the loan unless you put 10% or more down or refinance out of the FHA loan. The two are priced and cancelled differently.
Yes. If your home value has risen, a new appraisal can push your loan-to-value below 80% sooner than the schedule shows, and you can request cancellation on that basis. Extra principal payments also reach the 80% line faster. Either way the lender confirms the balance is at or below 80% of the value before dropping the charge.
Usually, yes — and it shortens how long you pay it. A larger down payment means a lower loan-to-value, which lenders price at a lower PMI rate, and it starts you closer to the 80% cancellation line. Fifteen percent down clears PMI far sooner than 3% down, so the total paid is much smaller even before the lower rate.
No. PMI protects the lender if you default, not you. It is simply the price of borrowing with less than 20% down. That is why cancelling it as soon as you reach 20% equity is worth doing — the payment falls and nothing about your coverage changes.
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Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
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