PMI Calculator
Calculate your Private Mortgage Insurance costs and when you can remove it.
Loan Details
When PMI Can Be Removed
Once your loan balance reaches 78% of your home's original value, you can request PMI removal.
What is PMI and when do you need it?
Private Mortgage Insurance (PMI) protects your lender — not you — if you stop making payments on your mortgage. Most lenders require PMI when your down payment is less than 20% of the home's purchase price. The annual cost usually falls between 0.3% and 1.5% of your original loan amount, depending on your credit score, loan type, and loan-to-value ratio. For example, on a $300,000 loan with 5% down at a 0.6% PMI rate, you'd pay about $1,488 per year, or roughly $124 per month, added to your mortgage payment.
How to use this calculator
- Enter your home's purchase price.
- Enter your down payment amount (or percentage).
- Enter your credit score range — higher scores qualify for lower PMI rates.
- Enter your loan term (most PMI-eligible loans are 15, 20, or 30 years).
- Click Calculate to see your monthly PMI cost, total PMI over the life of the loan, and the date you can request cancellation.
Understanding your results
The calculator shows three key numbers: your monthly PMI payment, total PMI paid over the life of the loan, and the month/year PMI can be cancelled based on the standard amortization schedule. The cancel date assumes you've never made extra payments — paying extra toward principal speeds it up. Your lender is required by federal law to automatically cancel PMI once your loan balance reaches 78% of the original value. You can also request cancellation earlier, at 80% loan-to-value, often through a new appraisal at your expense.
Frequently asked questions
Can I avoid PMI without 20% down? Yes. Some loan programs — VA loans, USDA loans, and certain lender-paid PMI options — let you skip PMI entirely. A larger down payment, piggyback loan, or lender-paid PMI can also reduce or eliminate it.
Does PMI drop over time? Yes if you don't refinance. PMI is based on your loan balance, so as you pay down principal, the percentage stays the same but the dollar amount shrinks each year. Once you cross the 20% equity threshold, you can request removal.
Is PMI tax-deductible? PMI deductibility varies by year and your income. Check the current IRS rules or talk to a tax professional before claiming it.
Learn more
Related calculators
- Mortgage Calculator — full monthly payment with PMI included
- Down Payment Calculator — see if you can reach 20%
- FHA Loan Calculator — for FHA loans (MIP is similar to PMI but different rules)
- What is PMI? — full guide