PMI Calculator
What mortgage insurance costs and when it ends
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- PMI
- Down payment
- Loan payoff date
- Total interest paid
- Property tax
- Home insurance
- Annual payment
- Total of all payments
| Year | Ends | Principal | Interest | Balance |
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| # | Date | Principal | Interest | Balance |
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How PMI is calculated
Private mortgage insurance (PMI) protects the lender if you stop paying. On a conventional loan, lenders usually require it when your down payment is under 20%. It's priced as a yearly percentage of the loan, commonly somewhere between about 0.3% and 1.5% depending on your credit score and down payment, and split into monthly payments:monthly PMI = loan amount × PMI rate ÷ 12.
With the example numbers, a $400,000 home with 10% down means a $360,000 loan. At 0.5% a year, PMI is $150 a month. It drops off after about 9 years, for a total of about $16,350.
When does PMI go away?
Under federal law, PMI on a conventional loan ends automatically when your balance is scheduled to reach 78% of the home's original value, as long as you're current on payments. You can ask your lender to cancel it earlier, once you reach 80%. Paying extra principal gets you there sooner. The calculator shows the month PMI ends and highlights it in the amortization schedule.
PMI vs. FHA mortgage insurance
FHA loans charge their own mortgage insurance premium (MIP) instead of PMI. With less than 10% down, FHA MIP lasts for the life of the loan; with 10% or more, it lasts 11 years. Switch the loan type to FHA above to compare, or use the FHA mortgage calculator. VA loans have no monthly mortgage insurance.
How to avoid or lower PMI
- Put 20% down. Try it in the calculator to see the payment without PMI.
- Improve your credit score before applying. PMI pricing depends heavily on it.
- Ask lenders about lender-paid PMI, which trades the monthly charge for a higher rate.
- Request cancellation at 80% loan-to-value, or after your home's value rises, if your lender allows a new appraisal.
Frequently asked questions
What is PMI?
Private mortgage insurance protects the lender, not you, if you stop making payments on a conventional loan. Lenders usually require it when you put less than 20% down. It's typically added to your monthly payment.
How much is PMI?
Commonly somewhere around 0.3% to 1.5% of the loan per year, depending on your credit score and down payment. On a $360,000 loan at 0.5%, that's $150 a month.
How is PMI calculated?
Multiply the loan amount by the annual PMI rate and divide by 12: $360,000 × 0.5% ÷ 12 = $150 a month. Your lender sets the rate based on your credit score, down payment and loan type.
When does PMI go away?
On a conventional loan, PMI ends automatically when your balance is scheduled to reach 78% of the home's original value, if you're current on payments. You can ask to cancel it at 80%. It also ends by the midpoint of the loan term. The calculator shows the month it drops off.
How do I get rid of PMI?
Request cancellation once you reach 80% loan-to-value, pay extra principal to get there sooner, or ask whether your lender will use a new appraisal if your home's value has risen. Refinancing with 20% equity also removes it.
How can I avoid PMI?
Put 20% down, ask about lender-paid PMI (which trades it for a higher rate), or, if you're eligible, use a VA loan, which has no monthly mortgage insurance.