PMI Calculator (Monthly Cost & Removal Date)
Enter a home price, down payment, and PMI rate to see the monthly and annual cost, your loan-to-value ratio, and the balance where PMI can be removed. The rate and term project when normal payments get you there.
The purchase price of the home
PMI typically applies below 20% down
Usually 0.2-1.5% of the loan per year; credit score drives it
Used to project when your balance reaches 80% LTV
30 years is standard; shorter terms shed PMI sooner
Monthly PMI
$180
$2,160 per year at 0.6% of the $360,000 loan
Loan-to-value today
90.0%
$360,000 loan on a $400,000 home
PMI can come off in
7 years 11 months
when the balance reaches $320,000 (80% LTV) with normal payments
Left on autopilot, that's roughly $17,100 of PMI before it goes away. You can typically request removal at 80% LTV of the original value, and lenders generally must cancel it automatically at 78%. Extra principal payments or a new appraisal after strong appreciation can move the date up.
The insurance you buy for someone else
Private mortgage insurance exists because a small down payment leaves the lender exposed: if prices dip and the loan defaults, there's little equity to absorb the loss. So on conventional loans below 20% down, the lender requires insurance and you pay the premium. The math is a straight percentage: the annual PMI rate times the loan balance, divided into monthly installments. The rate itself, usually somewhere between 0.2% and 1.5%, is set mostly by your credit score and how far below 20% you started, which is why two buyers of identical houses can pay very different premiums.
What $180 a month looks like on paper
Buy a $400,000 home with 10% down and you borrow $360,000, a 90% loan-to-value ratio. At a 0.6% PMI rate the premium is $2,160 a year, $180 a month on top of principal, interest, taxes, and insurance. The exit line sits at $320,000, which is 80% of the original value. With a 30-year loan at 6.5%, normal amortization crosses that line in just under eight years, meaning roughly $17,000 of PMI along the way. That's the honest cost of not waiting to save the full 20%: real money, but knowable, finite, and often smaller than years of rising prices while you save, a trade the down payment calculator helps you time.
Three ways out, ranked by effort
First, do nothing: payments alone eventually push the balance to 80% of original value, where you can request removal, and federal rules generally force automatic cancellation at 78% if you're current. Second, pay extra principal: even modest additional payments pull the removal date forward and cut total interest too, which the mortgage calculator can show year by year. Third, use appreciation: if your market has risen enough, a new appraisal can prove you're below 80% LTV today, though lenders set their own seasoning rules for that route. Whichever path you take, put a reminder on the projected date; servicers cancel on schedule, but the request route only works if you ask.
Frequently asked questions
What is PMI and when do lenders charge it?
Private mortgage insurance is a policy you pay for that protects the lender, not you, if the loan defaults. Conventional lenders typically require it when you put down less than 20%, because a high loan-to-value ratio leaves them little cushion if prices fall. It rides along with the monthly payment until you build enough equity.
How much does PMI cost per month?
Most borrowers pay roughly 0.2% to 1.5% of the loan amount per year, split into monthly installments. On a $360,000 loan at 0.6%, that's $2,160 a year, or $180 a month. Your credit score, down payment size, and loan type decide where you land in that range.
When does PMI go away?
Two milestones matter. You can generally request cancellation once the balance reaches 80% of the home's original value, and federal rules require lenders to end it automatically at 78% for borrowers current on payments. With normal amortization that can take years; extra principal or a strong appraisal can get you there sooner.
Is PMI the same on FHA and other government-backed loans?
No. Government-backed loans use their own mortgage insurance programs with different pricing and rules, and in many cases the insurance lasts for the life of the loan rather than ending at 78% LTV. This calculator models conventional PMI, which is the kind that cancels.
Is paying PMI always a mistake?
No, and treating it that way costs people homes. PMI is the price of buying with less than 20% down; waiting years to save the full amount can cost more in rising prices and rents than PMI ever would. Run both paths honestly: buy now with PMI, or keep saving while the target moves.
Does this calculator save my numbers?
No. Everything runs in your browser and nothing you type is stored or sent anywhere.
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