PMI Calculator: Monthly Cost + Exact Cancellation Date (2026)
10% down on a $300,000 loan adds roughly $125–$375/month in PMI. Use our free calculator to see your exact cost, when PMI cancels, and the total you’ll pay before it ends — free, instant, no sign-up.
How to Use This Calculator
Enter your home price, down payment, and interest rate. The calculator shows your PMI cost and — crucially — how many months until you can cancel PMI. Toggle the appreciation slider to see how rising home values accelerate your path to 20% equity.
- 1Enter Your Home Price & Down Payment — The down payment percentage determines your starting LTV. Any amount under 20% triggers PMI.
- 2Set the PMI Rate — PMI typically costs 0.5% to 1.5% of the loan amount annually. This calculator defaults to 0.85% — adjust it up or down based on your credit score and lender quote.
- 3Adjust Home Appreciation — Default is 3% annually. Higher appreciation means you reach 80% LTV (and cancel PMI) faster. Try 0% for a worst-case scenario.
- 4Review the Results — See your monthly PMI cost, how many months you'll pay PMI, and the total PMI cost over that period.
📊 Example: $400,000 Home with 10% Down
You're buying a $400,000 home with only 10% down ($40,000). Your loan is $360,000 at 6.5% with a PMI rate of 0.85%. Here's what PMI looks like:
| Home Price | $400,000 |
| Down Payment (10%) | $40,000 |
| Loan Amount | $360,000 |
| Monthly PMI Payment | $255/mo |
| Months Until PMI Canceled (3% appreciation) | 34 months (2.8 yrs) |
| Total PMI Paid | $8,415 |
With 0% appreciation (flat market), you'd pay PMI for 95 months (7.9 years) and spend about $23,970 in premiums. And if you never request cancellation, the automatic 78% LTV termination does not arrive until month 109, by which point you would have paid more than $27,500. That's why a 20% down payment — or accelerated principal payments — saves real money.
Understanding Your Results
PMI can significantly increase your housing costs. Here's how to interpret the key results:
Common Mistakes to Avoid
Homebuyers often misunderstand PMI or fail to plan for it. Avoid these common errors:
❌ Thinking PMI is tax-deductible for most people.
✅ PMI was tax-deductible for some taxpayers in prior years, but this deduction has expired for most filers. Check the current tax law — don't assume PMI will reduce your tax bill. If your AGI is over $109K, you almost certainly cannot deduct PMI.
❌ Assuming PMI automatically cancels at 80% LTV without checking.
✅ Under the Homeowners Protection Act, PMI must automatically terminate at 78% LTV. But you can request cancellation at 80% LTV. You need to track your equity and send a written request. Some servicers don't notify you when you're eligible.
❌ Not considering alternatives to PMI.
✅ Instead of paying PMI, consider: (1) a piggyback loan (80% first + 10% second + 10% down), (2) lender-paid PMI (higher rate, no monthly PMI), or (3) an FHA loan with MIP (different cost structure). Run all scenarios through our calculators before deciding.
How Is PMI Calculated?
PMI is priced as an annual percentage of your loan amount, but you pay it in 12 equal monthly installments inside your mortgage payment. Your credit score and your down payment set the rate; your loan size sets the dollar amount. The whole calculation comes down to one formula:
Monthly PMI = (Loan Amount × Annual PMI Rate) ÷ 12
Here is how to work through it in four steps:
- 1
Find your loan amount. Subtract your down payment from the home price. If the down payment is under 20%, PMI applies.
- 2
Get your annual PMI rate. Lenders publish rate grids based mainly on credit score and loan-to-value (LTV). Typical rates run 0.5% to 1.5% of the loan per year, though excellent credit plus a larger down payment can push quotes below 0.5% — and near-minimum credit pushes them above 1.5%.
- 3
Multiply: loan amount × annual rate. That gives the yearly premium. On a $300,000 loan at 0.6%, the annual premium is $300,000 × 0.006 = $1,800.
- 4
Divide by 12 to get the amount escrowed into your monthly payment: $1,800 ÷ 12 = $150/month.
Key nuance: unlike principal and interest, your monthly PMI is based on the original loan amount — not the declining balance. It stays flat every month until it is canceled. That is why the fastest way to lower the cost is to shorten the time you pay it, not to wait for it to shrink on its own.
PMI Rates by Credit Score
Credit score is the single biggest driver of your PMI rate. Borrowers in the top tier often pay roughly one-third of what a borrower near the minimum score pays. The ranges below are typical estimates for a conventional loan with a 5% to 10% down payment:
| Credit Score | Typical Annual PMI Rate | Monthly PMI on a $300,000 Loan |
|---|---|---|
| 760 or higher | 0.25% – 0.60% | $63 – $150 |
| 720 – 759 | 0.30% – 0.75% | $75 – $188 |
| 680 – 719 (most common) | 0.50% – 1.00% | $125 – $250 |
| 640 – 679 | 0.70% – 1.50% | $175 – $375 |
| 580 – 639 | 1.00% – 2.00% | $250 – $500 |
*Ranges are typical estimates, not a quote. Your lender's exact rate also depends on your LTV (down payment), loan type, and required coverage. Most borrowers land near the calculator's 0.85% default — for a $300,000 loan that is about $213/month. Adjust the PMI rate slider on this page to match your actual lender quote.
PMI Example: A $300,000 Loan, Step by Step
Let's put the formula to work. Say you buy a $333,333 home with 10% down and a 720–759 credit score, and your lender quotes a 0.60% annual PMI rate:
| Step 1 — Loan amount | $333,333 − $33,333 = $300,000 |
| Step 2 — Annual PMI premium | $300,000 × 0.60% = $1,800 |
| Step 3 — Monthly PMI | $1,800 ÷ 12 = $150/month |
| Principal & interest (6.5%, 30-yr) | $1,896/month |
| Total housing payment with PMI | $2,046/month |
Now the part people miss: that $150 is pure expense — it builds no equity and protects the lender, not you. Over a year that is $1,800 gone. If your home appreciates 3% a year, our calculator shows this loan reaching 80% LTV around month 34 (about 2.8 years), so you'd pay roughly 34 × $150 ≈ $5,100 before cancellation. If home values stay flat, federal rules only force automatic cancellation at 78% LTV — near month 109 (over 9 years), turning that same $150 into more than $16,000. That gap is exactly why the cancellation strategies below matter.
What PMI Costs in Total by Down Payment
A monthly PMI line looks small next to a mortgage payment, but the total is what actually leaves your pocket. Here is the same $400,000 purchase modeled with this calculator's defaults: a 0.85% annual PMI rate, a 6.5% 30-year loan, and 3% annual appreciation. "PMI ends" is the month the balance reaches 80% of the home's current value, which is when you can ask your servicer to cancel it. "Wait for 78%" is what happens if you never ask and the loan runs to the automatic termination date, which the law measures against your original price:
| Down Payment | Loan Amount | Monthly PMI | PMI Ends (80% LTV) | Total if You Ask | Total if You Wait for 78% |
|---|---|---|---|---|---|
| 5% | $380,000 | $269 | Month 49 (4.1 yrs) | 48 payments, $12,920 | 134 payments, $36,068 |
| 10% (default) | $360,000 | $255 | Month 34 (2.8 yrs) | 33 payments, $8,415 | 108 payments, $27,540 |
| 15% | $340,000 | $241 | Month 18 (1.5 yrs) | 17 payments, $4,094 | 74 payments, $17,822 |
| 20% | $320,000 | $0 | No PMI | $0 | $0 |
Three things stand out. First, PMI is a timing cost rather than a down payment tax: the same 0.85% rate costs $12,920 at 5% down, $8,415 at 10% down, and nothing at 20% down, because the premium simply stops once the loan is small enough relative to the home's value. Second, asking at 80% LTV beats waiting for the automatic 78% termination, and the savings grow as the down payment shrinks: $13,728 at 15% down, $19,125 at 10% down, and $23,148 at 5% down. Third, the calendar is driven by home values as much as by your principal. At 5% down, 3% annual appreciation moves the 80% date from month 124 to month 49, while the 80%-versus-78% threshold alone moves it from month 135 to month 124 when values are flat.
Put differently: the smaller your down payment, the more it costs to also be patient. The Rent vs Buy Calculator prices that trade-off directly, comparing 5%, 10%, 15%, and 20% down against renting the same home, so you can see whether paying PMI for a few years still beats waiting until you have more cash: see how PMI shifts your breakeven year.
PMI vs. MIP vs. Lender-Paid vs. Single-Premium
People use "PMI" for four different products, and only one of them goes away at 80% LTV. If you are comparing lender quotes, knowing which one you were handed is the difference between a cost that expires and a cost that does not:
| Type | Where It Shows Up | What It Costs | Can You Cancel It? |
|---|---|---|---|
| Borrower-paid PMI | Conventional loan with less than 20% down | 0.25% to 1.5% of the loan a year, paid monthly | Yes: request at 80% LTV, automatic at 78% |
| FHA MIP | FHA loan | 1.75% upfront (usually financed) plus 0.50% to 0.55% a year | Only with 10% or more down, then after 11 years; below that it lasts the life of the loan |
| Lender-paid PMI | Conventional loan, built into the rate | No monthly MI line, but a rate roughly 0.25% to 0.75% higher | No: only a refinance removes it |
| Single-premium PMI | Conventional loan, paid once at closing | A lump sum, often around 1% of the loan, sometimes financed | Nothing to cancel monthly, though a refund may apply if you sell or refinance early |
The trap is that lender-paid PMI looks cheapest on day one because there is no extra line item. Because mortgage insurance is quoted as a percentage of the loan, a lender can price it so that the two loans cost the same at closing. The difference is the exit: borrower-paid PMI on our default $400,000 purchase costs $8,415 and then disappears around month 34, while a rate-based premium keeps charging for as long as you hold the loan. Borrower-paid PMI you can cancel usually wins if you plan to keep the loan; lender-paid can win if you expect to refinance within a few years, since the whole loan gets replaced. FHA MIP sits outside that logic entirely, which is why conventional loans with PMI often beat FHA once your credit score is decent.
How to Avoid or Cancel PMI
PMI is avoidable, and once you have it, cancelable. Four moves that work:
- ✓
Put down 20% (or structure an 80/10/10 piggyback loan). A 20% down payment means no PMI from day one. If you cannot get there, a piggyback second mortgage — or a low-down-payment conventional program — can shrink or eliminate it. See how 5% down buyers handle PMI.
- ✓
Request cancellation at 80% LTV. Under the Homeowners Protection Act, you can cancel by written request once your balance hits 80% of the home's original value — you don't have to wait to be told. Track your balance and ask your servicer.
- ✓
Automatic termination at 78% LTV. If you never request it, the law still requires your servicer to drop PMI automatically when the loan reaches 78% of the original value. The date should be on your initial PMI disclosure.
- ✓
Refinance or re-appraise after appreciation. If your home's value has jumped, a new appraisal — or refinancing into a loan at 80% LTV or lower — can end PMI years early. An appraisal typically costs a few hundred dollars and can save thousands.
Want the full playbook — including the exact cancellation rules, exceptions, and the appraisal trick?
Read How Is PMI Calculated? Formula, Cost & Cancellation — our complete PMI guide — or run your exact numbers above with the PMI Calculator and its cancellation timeline.
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