PMI Calculator
Estimate the private mortgage insurance you'll pay on a conventional loan and learn when it can be removed.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
PMI typically cancels once you reach 80% LTV. You would need about $0 more in principal paid down or value to drop it. Estimate only.
Private mortgage insurance protects the lender when you put less than 20% down on a conventional loan. It is added to your monthly payment and does not build equity, so most buyers aim to remove it.
The good news is that PMI is temporary. Once your loan-to-value reaches 80% through payments or appreciation, you can request cancellation, and it automatically terminates at 78%.
How to Use This Calculator
- 1
Enter the home price you are considering.
- 2
Enter your down payment as a percentage of the price.
- 3
Adjust the PMI rate — it usually ranges from about 0.3% to 1.5% per year depending on credit and down payment.
- 4
Read your estimated monthly PMI and the equity needed to remove it.
The Formula & Assumptions
Loan = price × (1 − down %)
LTV = 100 − down %
Annual PMI = loan × PMI rate
Monthly PMI = annual PMI ÷ 12
PMI = $0 when down ≥ 20%
PMI is charged as a percentage of the loan balance per year, divided into monthly installments. The rate depends on your credit score and down payment — stronger profiles pay less.
With 20% or more down, conventional loans require no PMI at all. Below that, PMI applies until you reach 80% loan-to-value.
PMI is specific to conventional loans. FHA loans charge a different mortgage insurance premium (MIP) that often lasts the life of the loan, which is a key reason to compare the two.
Frequently Asked Questions
When does PMI go away?
You can request PMI cancellation once your loan balance reaches 80% of the original value, and lenders must automatically remove it at 78%. A new appraisal showing appreciation can also let you cancel sooner.
How much is PMI per month?
It varies with your credit score and down payment, typically ranging from about 0.3% to 1.5% of the loan per year. On a $360,000 loan at 0.5%, that is roughly $150 per month.
How do I avoid PMI entirely?
Put 20% down on a conventional loan, use a VA loan if eligible (no mortgage insurance), or explore lender-paid PMI where the cost is built into a slightly higher rate. Each approach has trade-offs.
Is PMI the same as FHA mortgage insurance?
No. PMI applies to conventional loans and can be cancelled at 80% LTV. FHA charges MIP, which often lasts the life of the loan unless you refinance into a conventional loan once you have enough equity.
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Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.