PMI Calculator

Calculate private mortgage insurance cost and when it will be removed. Compare 20% down vs lower down payment with PMI.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — When can I remove private mortgage insurance (PMI) from my loan?

$
$
Down Payment Mode
%
years

LTV Ratio

90.00%

Monthly PMI

$180.00

Monthly Payment

$2,395.09

Annual PMI

$2,160.00

Months Until PMI Removed

115

Total PMI Paid

$20,700.00

PMI Analysis

Home Price$400,000.00
Down Payment (10.0%)$40,000.00
Loan Amount$360,000.00
Loan-to-Value (LTV)90.00%
PMI RequiredYes
PMI Rate0.60%
Monthly PMI$180.00
Annual PMI$2,160.00
PMI Auto-Removed at 78% LTV115 months
Total PMI Paid$20,700.00

20% Down Payment Comparison

Current Monthly Payment (with PMI)$2,575.09
Monthly Payment with 20% Down$2,128.97
Monthly Difference$446.12
Additional Down Payment Needed for 20%$40,000.00

Use the 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

Private Mortgage Insurance is the charge lenders attach to a conventional loan when the down payment comes in under 20%. It rides on top of your monthly payment until you have built enough equity, so estimating it ahead of time gives you a truer picture of what the house actually costs each month.

The premium is an annual percentage of the loan amount, split across twelve monthly payments. Freddie Mac notes that it varies with the loan-to-value (LTV) ratio and your credit score, and puts the typical cost at $30 to $70 a month for every $100,000 borrowed. This calculator has no credit-score input and picks the rate from the LTV alone: 0.50% of the loan a year at 85% LTV or less, 0.60% above 85%, 0.75% above 90% and 1.00% above 95%.

PMI is not permanent: you can ask your servicer to cancel it once the balance is scheduled to fall to 80% of the home's original value, and it must end automatically when the balance is scheduled to reach 78%, the point the calculator counts to. The angle borrowers overlook is the down payment itself, since putting more down at the start can sidestep PMI entirely and save a meaningful sum over the years you hold the loan.

Example: 10% Down on a $400,000 Home

  1. 1 Enter a $400,000 home price, a $40,000 down payment, a 7.00% rate and a 30-year term, the calculator's defaults. The loan is $360,000 and the loan-to-value ratio is exactly 90%.
  2. 2 At 90% LTV the calculator uses its 0.60% tier (above 85%, up to 90%): $360,000 x 0.006 = $2,160 a year, or $180 a month, on top of $2,395.09 of principal and interest.
  3. 3 On the original schedule the balance reaches $312,000, 78% of the $400,000 value, with payment 115, so PMI ends automatically after 115 months and costs $180 x 115 = $20,700 in all. You can ask to cancel it earlier: the balance is scheduled to reach $320,000 (80%) with payment 101.
  4. 4 The 20% comparison: putting $80,000 down, $40,000 more, gives a $320,000 loan at $2,128.97 a month with no PMI, $446.12 less than the $2,575.09 you would pay with PMI.

Frequently Asked Questions

How much does PMI cost?
Freddie Mac puts the typical cost at $30 to $70 a month for every $100,000 borrowed, about 0.36% to 0.84% of the loan a year; this calculator uses 0.5% to 1.0%, set by the loan-to-value ratio. The exact rate depends on your credit score, down payment percentage, and loan type.
When can I stop paying PMI?
For conventional loans, you can request PMI removal at 80% loan-to-value (20% equity) and it is automatically cancelled at 78% LTV. FHA loans require mortgage insurance for the life of the loan unless you put 10%+ down.
Is it better to pay PMI or wait to save 20% down?
It depends on home price appreciation in your area and how long it would take to save 20%. Paying PMI to buy sooner can be worthwhile if home values are rising faster than your savings rate, since you start building equity immediately.