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