PMI Calculator
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Monthly PMI$118.75
Current LTV95.00%
Until PMI Drops (78% LTV)135 months
Total PMI Until Drop$16,031.25
The PMI Calculator estimates the private mortgage insurance premium added to your payment when you put down less than 20%, plus how long you will keep paying it. Monthly PMI equals the loan balance times the annual PMI rate divided by twelve. The tool also amortizes your loan to find the month your balance drops to 78% of the original home value, the point at which lenders must cancel PMI automatically.
Formula
monthly PMI = loan × (annual PMI rate / 100) / 12
- loan
- Current mortgage loan balance
- annual PMI rate
- Yearly PMI premium as a percentage of the loan, often 0.3%–1.5%
- 78% LTV
- The loan-to-original-value point where federal law requires automatic PMI cancellation
How it works
- Enter the loan amount, the home value, the annual PMI rate your lender quoted, the mortgage interest rate, and the loan term in years.
- The calculator multiplies the loan by the annual PMI rate and divides by twelve to get the monthly premium, and divides loan by value for the starting LTV.
- It then steps through the amortization schedule month by month until the balance reaches 78% of the home value, reporting that month count and the total PMI paid until then.
Worked example
A $285,000 loan on a $300,000 home with a 0.5% PMI rate, a 6.5% mortgage rate, and a 30-year term.
- Monthly PMI = 285,000 × 0.005 / 12 = $118.75.
- Starting LTV = 285,000 / 300,000 = 95%.
- Amortizing at 6.5% over 30 years, the balance reaches 78% of $300,000 ($234,000) in month 135.
- Total PMI = 118.75 × 135 = $16,031.25.
About $118.75 a month, dropping after 135 months, for $16,031.25 in total PMI.
Frequently asked questions
- When is PMI automatically removed?
- Under the Homeowners Protection Act, your servicer must automatically cancel PMI once the loan balance is scheduled to reach 78% of the original home value, provided you are current on payments.
- Can I cancel PMI before it drops automatically?
- Yes. You can request cancellation once you reach 80% LTV based on the original value, or sooner if a new appraisal shows enough equity. This calculator uses the automatic 78% trigger as the baseline.
- What is a typical PMI rate?
- Annual PMI rates usually fall between 0.3% and 1.5% of the loan amount, driven by your credit score and down payment. A larger down payment and higher credit score push the rate toward the low end.
- Does paying extra principal remove PMI faster?
- Yes. Extra principal payments lower the balance sooner, so you hit the 80% or 78% LTV thresholds earlier. This estimate assumes only the scheduled payment, so additional payments would shorten the timeline.