PMI Calculator
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. The PMI Calculator shows your monthly PMI cost, the total amount you will pay before it drops off, and the exact date your lender must cancel PMI once your loan balance reaches 80% of the original home value. Knowing this date helps you plan whether to accelerate payoff, request early cancellation, or simply wait.
PMI required when down payment < 20% of home price
Typical range: 0.5%–1.5% of loan amount per year
Used to calculate when your balance reaches 80% LTV
Monthly PMI Cost
$255.00
Months Until PMI Drops
101 months (October 2034)
Total PMI Paid
$25,755.00
Loan-to-Value (LTV) Ratio
90.0%
Monthly Mortgage Payment (P&I)
$2,395.09
Monthly Payment with PMI
$2,650.09
How to use this calculator
- 1
Enter the home price
Input the purchase price or current appraised value of the home.
- 2
Enter your down payment amount
Input the dollar amount of your down payment. PMI is required when this is less than 20% of the home price (i.e. LTV above 80%).
- 3
Set the annual PMI rate
Enter the PMI rate your lender quoted — typically 0.5% to 1.5% of the loan amount per year. The default of 0.85% is common for borrowers with good credit.
- 4
Enter the mortgage interest rate
Input your annual mortgage interest rate. This is used to simulate how quickly your balance falls to 80% LTV through regular amortization.
- 5
Select the loan term
Choose your loan term (10, 15, 20, or 30 years). Shorter terms pay down principal faster, so PMI drops sooner.
- 6
Review your PMI results
The calculator shows monthly PMI cost, how many months until PMI is automatically canceled, total PMI cost, and your LTV ratio.
Formula
Loan Amount = Home Price − Down Payment
LTV = Loan Amount ÷ Home Price × 100
PMI Required = LTV > 80%
Monthly PMI = Loan Amount × (Annual PMI Rate ÷ 100) ÷ 12
PMI drop date: simulate amortization until
Remaining Balance ≤ Home Price × 0.80
Total PMI Paid = Monthly PMI × Months with PMIPMI cost is calculated as a percentage of the original loan amount divided into monthly payments — it does not decrease as your balance falls. The drop-off month is found by running a standard amortization simulation month by month until the balance reaches 80% of the original purchase price. Example: a $400,000 home with $40,000 down (10% down, 90% LTV) at 0.85% PMI rate on a $360,000 loan gives monthly PMI of $360,000 × 0.0085 / 12 = $255. At 7% over 30 years, PMI drops after roughly 80 months (6.7 years), costing a total of ~$20,400.
Worked Example
Home Price: $400,000 Down Payment: $40,000 (10%) Loan Amount: $360,000 LTV: 90% → PMI required Annual PMI Rate: 0.85% Monthly PMI: $360,000 × 0.0085 ÷ 12 = $255/month Mortgage Rate: 7.00%, 30-year term Monthly P&I: ~$2,395 Amortize until balance ≤ $320,000 (80% × $400,000): → Approximately 80 months (6 years, 8 months) Total PMI Paid: $255 × 80 = $20,400 After month 80, PMI is automatically canceled and your monthly payment drops by $255.