PMI Calculator

How the PMI calculator works

Private mortgage insurance (PMI) protects the lender when your down payment is below 20% of the home price. This calculator estimates your monthly PMI payment, loan-to-value (LTV) ratio, total monthly payment including principal and interest, and when you may reach 80% LTV for PMI cancellation. All math runs in your browser.

Enter the home price, down payment, loan term, interest rate, and annual PMI rate. For a full monthly housing cost including taxes and insurance, use the mortgage calculator with taxes and insurance. To see how your down payment affects LTV, try the loan-to-value ratio calculator. To model how much cash you need at closing, use the down payment calculator.

When PMI is required

Conventional loans typically require PMI when the loan-to-value ratio exceeds 80%:

A 10% down payment on a $350,000 home leaves a $315,000 loan and an LTV of 90%, which triggers PMI. A 20% down payment brings LTV to 80% and eliminates PMI at closing.

Monthly PMI formula

PMI is added to your principal and interest payment until the loan balance reaches 80% of the original home value through regular payments or home price appreciation.

Worked example: $350,000 home, 10% down, 0.5% PMI rate

1. Down payment: $350,000 x 10% = $35,000
2. Loan amount: $350,000 - $35,000 = $315,000
3. LTV: $315,000 / $350,000 = 90%
4. Monthly PMI: $315,000 x 0.5% / 12 = $131.25

Frequently asked questions