PMI Calculator
Find your monthly and annual private mortgage insurance, plus the loan balance where you reach 20% equity and can have PMI removed.
Private mortgage insurance (PMI)
Put less than 20% down and lenders charge PMI to cover their risk. It's your loan balance times the PMI rate. Here's the yearly and monthly cost, plus when you can shed it.
Monthly PMI
$150.00
Added to your monthly payment
Annual PMI
$1,800
Loan balance × PMI rate
Loan-to-value (LTV)
90.0%
10.0% down
Drop PMI at balance
$312,000
78% of price — automatic cancellation point
How it works
When you put less than 20% down, the lender is carrying more risk, so they tack on private mortgage insurance. It's not for your benefit — it protects them if you default. The cost is your loan balance multiplied by an annual PMI rate, usually somewhere between 0.3% and 1.5%.
The good news is PMI isn't forever. Once your loan-to-value drops to 80% you can request cancellation, and by law lenders must drop it automatically at 78% of the original price. This tool shows the balance where that happens so you know the target to aim for.
Take a $400,000 home with $40,000 down. Your loan is $360,000 and a 0.5% PMI rate means $1,800 a year, or $150 a month. If instead you had $80,000 down on a $320,000 loan, 0.5% is $1,600 a year — $133 a month — until the balance falls to $312,000, which is 78% of the price.
Frequently asked questions
When does PMI actually go away?
You can ask your lender to cancel it once you reach 20% equity (an 80% loan-to-value). They're required to drop it automatically when the balance hits 78% of the home's original value, as long as you're current on payments.
Can I avoid PMI without 20% down?
Sometimes. Lender-paid PMI folds the cost into a slightly higher rate, and a piggyback second loan can cover the gap. Both have trade-offs, so compare the lifetime cost against just paying PMI until you cross 20% equity.
Does a rising home value cancel PMI faster?
It can. If your home appreciates enough that you'd have 20% to 25% equity based on a fresh appraisal, many lenders will drop PMI early. You usually have to request it and pay for the appraisal yourself.