PMI Calculator (Private Mortgage Insurance)

Calculate your PMI monthly cost, how long it will take to reach 20% equity, and the total PMI you'll pay. Includes home appreciation to accelerate LTV progress.

Loan Details
Enter your home price and down payment to calculate PMI.

PMI is required when down payment is below 20%.

Typical range: 0.5%–1.5% of loan amount per year.

Appreciation accelerates reaching 80% LTV.

Monthly PMI Cost
$255/mo
Current LTV90.0%
Loan Amount$360,000
Down Payment$40,000
PMI Removal Timeline
With 3% appreciation
2.8 years
Auto-cancel (78% LTV, no appreciation)
9.1 years
Total PMI Cost
Total PMI you'll pay
$8,415
Monthly P&I payment
$2,275/mo
How to Remove PMI Faster

Request cancellation at 80% LTV: Once your loan balance drops to 80% of the original purchase price, you can request PMI removal in writing.

Automatic cancellation at 78% LTV: Federal law (Homeowners Protection Act) requires automatic PMI cancellation when your balance reaches 78% of the original value.

Make extra principal payments: Even $100/month extra can shave months off your PMI timeline.

Get a new appraisal: If your home has appreciated significantly, a new appraisal may show LTV below 80%, allowing early removal.

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.

  1. 1
    Enter Your Home Price & Down Payment — The down payment percentage determines your starting LTV. Any amount under 20% triggers PMI.
  2. 2
    Set the PMI Rate — PMI typically costs 0.5% to 1% of the loan amount annually. The default is 0.85% — adjust based on your credit score and lender quote.
  3. 3
    Adjust Home Appreciation — Default is 3% annually. Higher appreciation means you reach 80% LTV (and cancel PMI) faster. Try 0% for a worst-case scenario.
  4. 4
    Review 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)46 months (3.8 yrs)
Total PMI Paid$11,730

With 0% appreciation (flat market), you'd pay PMI for 89 months (7.4 years) and spend over $22,000 in PMI premiums. 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:

Monthly PMI PremiumPMI costs 0.5–1% of your loan amount annually, divided into monthly payments. For a $360K loan at 0.85%, that's $255/mo — $3,060/year added to your housing costs for zero benefit to you (it protects the lender).
LTV Ratio (Loan-to-Value)Your loan balance divided by the home's current value. You start at 90% LTV with 10% down. PMI must be canceled when LTV reaches 80% (20% equity). Home appreciation accelerates reaching this threshold.
PMI Cancellation TimelineWith 3% annual appreciation, a 10%-down buyer reaches 80% LTV in ~46 months. With 0% appreciation, it takes ~89 months of regular principal payments to reach the same equity level. Appreciation is the biggest variable in determining how long you'll pay PMI.
Total PMI CostThe total dollar amount you pay in PMI premiums before cancellation. This can range from ~$8K (high appreciation, 5% down with rapid repayment) to $25K+ (low appreciation, 3% down, standard amortization).

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.

Related Tools & Guides

Explore your options for avoiding or minimizing PMI:

Mortgage Calculator →Affordability Calculator →What is PMI? Complete Guide →Buying with 5% Down →

Frequently Asked Questions

What is PMI?
PMI (Private Mortgage Insurance) protects the lender, not you, in case you default on your loan. It's required when your down payment is less than 20% of the home's purchase price. PMI typically costs 0.5% to 1% of the loan amount annually.
When can I cancel PMI?
You can request PMI cancellation once your loan balance reaches 80% of the home's original value. Under the Homeowners Protection Act, PMI must be automatically terminated when your balance reaches 78% of the original value.
How does home appreciation affect PMI?
Rising home values can help you reach 20% equity faster. For example, if your home appreciates 5% annually, the combined effect of paying down your loan and your home gaining value accelerates when you can cancel PMI.
Can I avoid PMI without 20% down?
Yes. Options include: a piggyback loan (80% first mortgage + 10% down + 10% second mortgage), lender-paid PMI (higher rate but no monthly PMI), or an FHA loan (has MIP instead, with different rules). Compare all options with our calculators.