Mortgage Insurance (PMI) Calculator

Calculate monthly PMI cost and when it will be removed based on LTV.
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Monthly PMI

$137.50

Annual PMI

$1,650.00

PMI Details

Loan-to-Value (LTV)80.00%
Monthly PMI$137.50
Annual PMI$1,650.00
Months to PMI Removal (78% LTV)9 months

Use the Mortgage Insurance (PMI) Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Mortgage Insurance (PMI) Calculator estimates your monthly PMI cost and projects when it can be automatically removed, saving you money. For 2026, typical PMI rates range from 0.3% to 1.5% of the original loan amount annually, depending on your credit score and loan-to-value (LTV) ratio. Understanding PMI helps you budget effectively and plan for its eventual elimination.

This calculator uses your loan amount, interest rate, and estimated PMI rate to determine your monthly PMI payment. It then projects the loan balance over time, factoring in your principal and interest payments, to identify when your LTV reaches 80% (for automatic removal) and 78% (for mandatory removal based on the Homeowners Protection Act). We assume a fixed interest rate and consistent payments.

A common mistake is forgetting that extra principal payments can accelerate PMI removal. Be aware that refinancing resets your LTV, potentially reintroducing PMI. Also, some lenders may require an appraisal to confirm your home's current value for PMI removal, even if your LTV based on the original value is below 80%.

Example: First-Time Homebuyer's PMI

  1. 1 Input: Loan Amount: $300,000, Interest Rate: 6.5% (fixed), Loan Term: 30 years, Down Payment: 5% ($15,000), Estimated PMI Rate: 0.85% of original loan amount.
  2. 2 Calculate: Monthly PMI = ($300,000 * 0.0085) / 12 = $212.50. The calculator then projects the loan balance monthly.
  3. 3 Result: Your monthly PMI payment is $212.50. Based on your inputs, your LTV will reach 80% in approximately 7 years and 3 months, at which point you can request PMI removal. Mandatory removal at 78% LTV would occur in approximately 7 years and 11 months.
  4. 4 Context: By making a larger down payment or additional principal payments, you could reduce the time it takes to reach the 80% LTV threshold and eliminate your PMI sooner, saving you thousands of dollars over the life of the loan.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

What is the typical PMI rate for a conventional mortgage?
PMI typically costs 0.5-1.5% of the original loan amount per year, paid monthly. On a $300,000 mortgage, PMI adds $125-$375 per month. The exact rate depends on your credit score, down payment percentage, and loan type. Better credit means lower PMI rates.
At what loan-to-value ratio is PMI automatically removed?
For conventional loans, you can request PMI removal when your equity reaches 20% of the original value (80% LTV). PMI is automatically canceled when equity hits 22%. This can happen through paying down the mortgage, home appreciation, or a combination. FHA loans have different MIP rules.
Can I avoid PMI with less than 20% down?
Options include lender-paid PMI (rolled into a higher interest rate), a piggyback loan (80-10-10 structure), VA loans (no PMI required), or USDA loans. Each has tradeoffs. Lender-paid PMI cannot be removed later, while borrower-paid PMI can.

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