PMI Calculator
Calculate private mortgage insurance cost and when it will be removed. Compare 20% down vs lower down payment with PMI.
By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home
LTV Ratio
90.00%
Monthly PMI
$180.00
Monthly Payment
$2,395.09
Annual PMI
$2,160.00
Months Until PMI Removed
115
Total PMI Paid
$20,700.00
PMI Analysis
| Home Price | $400,000.00 |
| Down Payment (10.0%) | $40,000.00 |
| Loan Amount | $360,000.00 |
| Loan-to-Value (LTV) | 90.00% |
| PMI Required | Yes |
| PMI Rate | 0.60% |
| Monthly PMI | $180.00 |
| Annual PMI | $2,160.00 |
| PMI Auto-Removed at 78% LTV | 115 months |
| Total PMI Paid | $20,700.00 |
20% Down Payment Comparison
| Current Monthly Payment (with PMI) | $2,575.09 |
| Monthly Payment with 20% Down | $2,128.97 |
| Monthly Difference | $446.12 |
| Additional Down Payment Needed for 20% | $40,000.00 |
Use the PMI Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Private Mortgage Insurance is the charge lenders attach to a conventional loan when the down payment comes in under 20%. It rides on top of your monthly payment until you have built enough equity, so estimating it ahead of time gives you a truer picture of what the house actually costs each month.
The premium is set as an annual percentage of the original loan amount, generally landing somewhere between 0.3% and 1.5% depending on credit and loan profile. That yearly figure is split across twelve months, and the resulting amount is folded into your regular mortgage payment.
PMI is not permanent: once your equity reaches 20%, you can usually request that it be dropped. The angle borrowers overlook is the down payment itself, since putting more down at the start can sidestep PMI entirely and save a meaningful sum over the years you hold the loan.
Example: Buying a Home with PMI
- 1 Let's say you're buying a home for $300,000 and make a 10% down payment, which is $30,000. This means your loan amount will be $270,000. Your lender quotes a PMI rate of 0.8% annually.
- 2 First, calculate the annual PMI: $270,000 (loan amount) * 0.008 (PMI rate) = $2,160. Then, divide by 12 to get the monthly PMI: $2,160 / 12 = $180.
- 3 Your estimated monthly PMI premium will be $180.
- 4 This $180 will be added to your principal, interest, taxes, and insurance (PITI) payment each month until you cancel the PMI. While seemingly small, this adds up to $2,160 annually, highlighting the benefit of reaching 20% equity.
Source: CFPB — Owning a Home · Last updated: April 2026
Frequently Asked Questions
How much does PMI cost?
When can I stop paying PMI?
Is it better to pay PMI or wait to save 20% down?
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