Enter your home price, down payment, and estimated PMI rate to see your loan-to-value ratio and monthly private mortgage insurance cost — or confirm whether your down payment is large enough to skip PMI entirely.
Home Price
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Down Payment
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A 20% down payment on a $400k home = $80,000 and eliminates PMI.
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PMI is typically required when down payment is below 20% (LTV above 80%).
PMI Rate
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Typical range: 0.2%–2.0% of loan amount per year. Varies by credit score, lender, and loan type.
PMI Analysis
Home price$0.00
Down payment$0.00
Loan amount$0.00
Loan-to-value (LTV)0.00%
Annual PMI cost$0.00
Monthly PMI cost$0.00
Monthly PMI
$0.00
LTV Ratio
0.00%
Annual PMI
$0.00
PMI rates vary by credit score, lender, and loan program. Actual PMI cost will be confirmed by your lender. FHA/VA loans use different mortgage insurance structures.
About the PMI Calculator
Private Mortgage Insurance is one of the hidden costs of buying a home with less than 20% down — and one of the most commonly overlooked. PMI doesn't protect you; it protects your lender against the risk that you might default. Understanding how much PMI adds to your monthly payment helps you make a better-informed decision about how much to put down and whether to delay buying or adjust your purchase price.
How PMI Is Calculated
PMI is priced as an annual percentage of your loan balance, typically ranging from 0.2% to 2.0% per year. The exact rate depends on your credit score, loan-to-value ratio, loan term, and lender. Your servicer then divides the annual cost by 12 to add it to your monthly payment.
PMI is typically required when your LTV exceeds 80% — meaning your down payment is less than 20% of the purchase price. At exactly 20% down, PMI is not required on conventional loans. Even a small additional amount toward your down payment to reach 20% can save hundreds of dollars per month.
When Does PMI End?
At 80% LTV (by request) — once your loan balance reaches 80% of the original purchase price, you can formally request PMI cancellation
At 78% LTV (automatically) — federal law requires automatic cancellation when the balance reaches 78% of the original value based on the scheduled amortization
Midpoint of loan term — PMI must be cancelled at the midpoint of the loan's amortization schedule regardless of LTV
FHA loans differ — FHA MIP rules changed in 2013 and MIP may last for the full loan term for many borrowers
Strategies to Avoid or Reduce PMI
Put 20% down — the cleanest way to eliminate PMI entirely on a conventional loan
Lender-paid PMI (LPMI) — lender pays PMI in exchange for a slightly higher interest rate; you don't pay monthly PMI but you can't cancel it
Piggyback loan (80-10-10) — combine a first mortgage (80%), second mortgage (10%), and 10% down payment to avoid PMI while putting less than 20% down
VA or USDA loan — eligible borrowers can use these programs with no down payment and no PMI
PMI rates, eligibility, and cancellation rules vary by lender, loan type, and insurer. This calculator uses a simplified model and does not account for lender-specific pricing or credit-score tiers. Consult your lender for exact PMI terms on your loan. Not financial advice.
Frequently Asked Questions
What is PMI?
Private Mortgage Insurance (PMI) is a type of insurance that protects the lender — not the borrower — if you default on a conventional mortgage. It is typically required when your down payment is less than 20% of the home's purchase price, meaning your loan-to-value (LTV) ratio exceeds 80%. PMI adds to your monthly housing cost but allows you to buy a home with a smaller down payment than would otherwise be required.
When do I have to pay PMI?
PMI is generally required on conventional loans when your LTV exceeds 80% at the time of closing. FHA loans have their own mortgage insurance premium (MIP) with different rules. VA and USDA loans typically do not require PMI. Once your LTV reaches 80% through principal paydown or home appreciation, you can request cancellation; by law (Homeowners Protection Act), lenders must automatically cancel PMI when LTV reaches 78% based on the original amortization schedule.
How is PMI calculated?
PMI is typically expressed as an annual percentage of the loan amount, ranging from about 0.2% to 2.0% depending on credit score, loan size, down payment, and lender. Annual PMI = Loan Amount × PMI Rate. Monthly PMI = Annual PMI ÷ 12. For example, a $300,000 loan with a 0.8% PMI rate costs $2,400/year or $200/month.
Does PMI go away automatically?
Under the federal Homeowners Protection Act, PMI must be automatically cancelled when your loan balance reaches 78% of the original purchase price based on scheduled payments alone. You can request early cancellation at 80% LTV, but the lender may require a current appraisal. FHA MIP has different cancellation rules and, for loans originated after 2013 with less than 10% down, may last for the entire loan term.
Can a larger down payment eliminate PMI?
Yes. A down payment of 20% or more on a conventional loan keeps your LTV at or below 80%, which eliminates PMI entirely. If you're close to 20% down, it's often worth considering whether paying extra upfront to hit that threshold saves more than it costs — especially if PMI adds hundreds of dollars per month to your housing payment.
Is PMI included in a mortgage calculator?
Standard mortgage payment calculators typically calculate principal and interest only. This PMI calculator isolates the PMI component so you can see exactly what it adds to your monthly cost. For a complete picture of your total monthly housing payment — including PITI (principal, interest, taxes, insurance) plus PMI — use our Mortgage Calculator alongside this tool.
How does PMI affect monthly housing cost?
PMI can add anywhere from $50 to $500 or more per month depending on loan size and PMI rate. On a $350,000 loan at a 0.8% PMI rate, that's $233/month. Since PMI provides no direct benefit to the borrower, many buyers try to minimize it — either by putting more down, using lender-paid PMI (at a higher rate), or using a piggyback loan structure to avoid crossing the 80% LTV threshold.
