PMI Calculator
Private Mortgage Insurance cost, timeline, and removal date
PMI (Private Mortgage Insurance) is required on conventional loans when your down payment is below 20%. This calculator finds your exact monthly PMI cost, then models your amortization schedule to show the guaranteed auto-termination date (78% of original value, required by federal law) and the earliest possible removal date (80% of original value, or sooner if your home appreciates) — plus total PMI cost under each scenario.
How PMI Is Calculated
PMI is priced as a percentage of your loan balance, billed monthly, and it shrinks — then disappears — as you pay down principal. The Homeowners Protection Act of 1998 governs exactly when it must end.
Monthly PMI
Loan Amount × PMI Rate ÷ 12
Loan-to-Value (LTV)
Loan Balance ÷ Home Value × 100
| Term | Definition |
|---|---|
| LTV | Loan-to-Value — your loan balance divided by the home's value, expressed as a percentage |
| 78% Rule | Automatic PMI termination point, based on your ORIGINAL amortization schedule — required by federal law |
| 80% Rule | Borrower-requested cancellation point — you can ask your servicer to drop PMI once you hit this LTV |
Example: On a $400,000 home with a $30,000 down payment (7.5% down, LTV 92.5%), a $370,000 loan at 6.75% with a 0.65% PMI rate costs roughly $200/month in PMI. Amortizing the loan shows the balance crosses 78% of the original $400,000 value (i.e., $312,000) around year 9 — the guaranteed removal date. If the home appreciates 3%/year, the value-based 80% threshold can be reached years earlier, since rising home value shrinks the effective LTV faster than principal paydown alone.
⚠️ Expert Pro-Tip
PMI doesn't remove itself at 80% — you have to ask. Automatic termination only kicks in at 78% of your original loan amount. If your home has appreciated, you're very likely sitting well under 80% LTV years before your amortization schedule says so. Order a new appraisal (typically $400–$600) and submit a written cancellation request to your servicer — most borrowers who do this shave 1–3 years of PMI payments off their loan, often saving $2,000–$6,000+ in the process.
PMI Calculator
Loan Details
7.50% of home price
PMI Assumptions
Typical range: 0.15%–1.95%, based on credit score and LTV
Used to estimate early value-based PMI removal
PMI Results
Monthly PMI Payment
$200.42
Added on top of principal & interest
Total Monthly Payment (P&I + PMI)
$2,600.23
When Does PMI Go Away?
| Guaranteed auto-termination (78% original value) | 10 yr 6 mo |
| Total PMI paid by then | $25,252.50 |
| Earliest possible removal (request at 80%) | 3 yr 7 mo |
| Total PMI paid if removed early | $8,617.92 |
| Potential savings by requesting early | $16,634.58 |
Based on your results — what to do next:
See your full monthly payment breakdown
Your P&I is $2,399.81/mo plus $200.42 PMI. Run the full mortgage calculator for taxes, insurance, and amortization.
Check what home price actually fits your budget
At $2,600.23/mo housing cost, see if this home price fits the 28/36 lending rule.
Save the extra to skip PMI altogether
Saving $50,000 more gets you to 20% down and eliminates the $200.42/mo PMI payment.