PMI Calculator
Estimate your private mortgage insurance cost and when it can be removed, from the price, down payment and PMI rate.
PMI per month
$210.00
- PMI per year
- $2,520
- Loan-to-value at the start
- 90%
- Months until the balance reaches 80% of the price
- 95
- Months until PMI ends automatically (78%)
- 109
- PMI paid until it ends
- $22,890
- Do you need PMI?
- Yes. Your loan is 90% of the home value, above 80%.
With a loan-to-value of 90%, PMI is estimated from your yearly rate.
Calculation breakdown
| Step | Formula | Result |
|---|---|---|
| Loan-to-value | $360,000.00 ÷ $400,000.00 | 90% |
| PMI per year | $360,000.00 × 0.7% | $2,520.00 |
How it works
Enter the price, your down payment, the loan details and the yearly PMI rate your lender quotes.
Worked example
A $400,000 home with $40,000 down and a 0.7% PMI rate:
- Loan: $360,000, a loan-to-value of 90%
- PMI: 360,000 × 0.7% = $2,520 a year, or $210 a month
- Your balance is scheduled to reach 80% of the price ($320,000) and 78% ($312,000) in the early years of the loan, and the calculator shows the months
Sources
Frequently asked questions
What is PMI?
Private mortgage insurance protects the lender if you stop paying. It is usually required when you put down less than 20% of the home's price, so the loan is more than 80% of its value. You pay for it, but the lender is the one protected.
How much does PMI cost?
It is charged as a yearly percentage of the loan, quoted by your lender, and paid monthly. At a 0.7% rate, a $360,000 loan costs $2,520 a year, or $210 a month. The 0.7% here is only an example, so enter your own rate.
When can I stop paying PMI?
Under the Homeowners Protection Act you can ask to cancel when your balance is first scheduled to reach 80% of the home's original value, and it ends automatically when it is first scheduled to reach 78%, if you are current on payments.
How does the calculator find those dates?
It builds the normal payment schedule for your loan and finds the first month the balance is at or below 80% and 78% of the original price. It assumes no extra payments and no change in the home's value.
Can I get rid of PMI sooner?
Extra principal payments reach 80% sooner. Some lenders also let you cancel based on a new appraisal if your home has gained value. Ask your servicer for its rules.
An estimate for information only. Your lender sets the PMI rate and the cancellation rules, and the CFPB's PMI pages could not be read for this page.