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PMI Calculator

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Enter your home value, loan amount, and PMI rate to find your monthly private mortgage insurance cost.

PMI Calculator

Live
Monthly PMI
$145.83
Loan-to-value (LTV)
87.5%
PMI required?
Yes (LTV over 80%)
PMI typically cancels automatically once your loan balance reaches 78% LTV, or can be requested to be removed at 80% LTV.

The formula

LTV = (Loan amount / Home value) x 100 If LTV > 80%: Monthly PMI = (Loan amount x PMI rate) / 12
Example

A $400,000 home with a $350,000 loan (87.5% LTV) at 0.5% PMI rate: monthly PMI = (350,000 x 0.005) / 12 = $145.83/month.

Step-by-step guide

  1. Enter your home's value and loan amount.
  2. Enter your PMI rate (check your loan estimate, or use a typical range as a placeholder).
  3. Read your monthly PMI and whether it applies based on your LTV.

Why PMI exists and when it goes away

PMI protects the lender - not the borrower - against the added risk of lending to someone with less than 20% equity in the home. It's the trade-off that lets buyers put down less than 20% and still qualify for a conventional loan, rather than being required to save a larger down payment first. Importantly, PMI isn't permanent: by federal law, lenders must automatically cancel it once the loan balance reaches 78% of the home's original value (assuming payments are current), and borrowers can request cancellation once they reach 80% LTV, provided the loan is in good standing.

Common mistakes

Confusing PMI (conventional loans) with mortgage insurance premiums on FHA loans, which follow different rules and sometimes don't cancel automatically at all.
Forgetting that home value appreciation (not just paying down the loan) can also reduce your LTV - some lenders allow PMI removal based on updated appraised value, not just the original purchase price.

Frequently asked questions

Can I avoid PMI entirely?

Yes - putting down 20% or more on a conventional loan avoids PMI from the start. Some lenders also offer piggyback loan structures or lender-paid PMI (built into a slightly higher rate) as alternatives.

Does PMI protect me if I can't make payments?

No - PMI protects the lender's investment, not the borrower. It doesn't pause your payment obligation or protect your credit if you default.

How do I request PMI removal once I qualify?

Contact your loan servicer directly - they can explain their specific process, which may require a formal request and sometimes a new appraisal to confirm your current LTV.

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