PMI Calculator
Estimate monthly private mortgage insurance from your loan amount, LTV, and credit tier — and see when PMI drops off.
If your down payment is under 20%, lenders charge private mortgage insurance. Enter your loan amount, home value, mortgage rate, term, and credit tier to estimate the monthly PMI premium, find when it terminates automatically at 78% loan-to-value, and see the total PMI you will pay.
How to use this calculator
- Enter your loan amount and the home's purchase value.
- Select your credit score tier — better credit means a lower PMI rate.
- Enter your mortgage rate and term so the calculator can find the 78% LTV drop-off point.
- Click Calculate to see monthly PMI, the drop-off month, and total PMI paid.
The formula
Monthly PMI = loan amount × annual PMI rate ÷ 12; PMI ends when balance ≤ 78% of original value.
Worked example
A $380,000 loan on a $400,000 home is 95% LTV, so PMI applies. With good credit (0.5% annual), PMI costs $158.33 per month and drops off automatically in month 135 (about 11.3 years) when the balance reaches 78% LTV — $21,375 total.
Frequently Asked Questions
What is PMI and when do I have to pay it?
Private mortgage insurance protects the lender if you default, and conventional lenders require it when your down payment is less than 20% (LTV above 80%). It typically costs 0.3% to 1.5% of the loan amount per year depending on your credit score and down payment. It is an extra monthly cost on top of principal, interest, taxes, and insurance.
When does PMI automatically drop off?
Under the federal Homeowners Protection Act, PMI on most conventional loans must terminate automatically when your balance reaches 78% of the original home value through scheduled payments. You can also request cancellation at 80% LTV, though the lender may require an appraisal and a good payment history. FHA loans have different rules and often keep mortgage insurance for the life of the loan.
How can I avoid PMI?
The simplest way is a 20% down payment. Alternatives include lender-paid mortgage insurance (a higher rate instead of monthly PMI), piggyback loans like an 80-10-10 structure, or VA loans for eligible veterans, which have no PMI. Each alternative has tradeoffs, so compare the total cost rather than just the monthly payment.
How does my credit score affect PMI?
PMI pricing is risk-based: higher credit scores get lower annual rates. A borrower with excellent credit might pay around 0.3% per year while a borrower with poor credit could pay over 1%. On a $380,000 loan that is the difference between about $95 and $348 per month. Improving your score before buying can save thousands.
Can I remove PMI early with appreciation?
Yes. If your home appreciates or you make extra principal payments, you can request PMI cancellation once your balance hits 80% of the current appraised value, rather than waiting for the automatic 78% termination on the original value. The lender will usually require a new appraisal at your expense and a solid payment history.