PMI Calculator

Calculate private mortgage insurance cost and when it will be removed. Compare 20% down vs lower down payment with PMI.

$
$
Down Payment Mode
%
years

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 RequiredYes
PMI Rate0.60%
Monthly PMI$180.00
Annual PMI$2,160.00
PMI Auto-Removed at 78% LTV115 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

A PMI Calculator estimates your Private Mortgage Insurance (PMI) costs, a fee typically required if you put down less than 20% on a conventional loan. Understanding PMI is crucial as it adds to your monthly mortgage payment and impacts your overall homeownership costs until you build sufficient equity.

PMI is typically calculated as an annual percentage of the original loan amount, often ranging from 0.3% to 1.5%. This annual amount is then divided by 12 to determine the monthly PMI premium, which is added to your regular mortgage payment.

Don't forget that PMI isn't forever – you can often request its cancellation once you reach 20% equity in your home. A common mistake is not considering how a larger down payment can eliminate PMI altogether, saving you significant money over the life of the loan.

Example: Buying a Home with PMI

  1. 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. 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. 3 Your estimated monthly PMI premium will be $180.
  4. 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?
PMI typically costs 0.5-1.5% of the loan amount per year, or $50-$150/month per $100,000 borrowed. The exact rate depends on your credit score, down payment percentage, and loan type.
When can I stop paying PMI?
For conventional loans, you can request PMI removal at 80% loan-to-value (20% equity) and it is automatically cancelled at 78% LTV. FHA loans require mortgage insurance for the life of the loan unless you put 10%+ down.
Is it better to pay PMI or wait to save 20% down?
It depends on home price appreciation in your area and how long it would take to save 20%. Paying PMI to buy sooner can be worthwhile if home values are rising faster than your savings rate, since you start building equity immediately.