PMI Calculator
This PMI calculator estimates the private mortgage insurance you'll pay on a conventional loan. It also shows when the PMI can be removed.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
Distance to Dropping PMI
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%.
These figures are estimates. For neutral, official guidance on mortgage costs and what lenders can charge, see the CFPB's Owning a Home guide.
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.
It estimates your monthly private mortgage insurance cost on a conventional loan. It also shows when you can expect to drop it as your equity grows.
PMI Calculator in Florida
PMI itself does not vary by state, but Florida home prices and your down payment do, which together set the premium. Putting at least 20% down on a Florida purchase avoids PMI entirely — worth weighing against keeping cash on hand for the state's higher insurance and closing costs.
How the PMI Calculator Works
The calculator applies an estimated PMI rate to your loan amount to find the annual premium, divides by twelve for the monthly cost, and projects the point at which your balance reaches 78% to 80% of the original value, when PMI typically ends.
The PMI Formula, Explained
Monthly PMI = (loan amount × annual PMI rate) / 12
PMI rates depend mostly on your down payment and credit score. A higher credit score and larger down payment both lower the rate. The premium is a percentage of the loan, charged monthly until you reach the equity threshold.
On conventional loans, PMI automatically terminates when the balance reaches 78% of the original value, and you can request removal at 80%. The calculator estimates how many payments that takes.
The Complete PMI Calculator Guide
Private mortgage insurance protects the lender, not you, and is required on most conventional loans with less than 20% down. It is a real monthly cost, but it also lets you buy sooner instead of waiting years to save a full 20%.
Because PMI is tied to your loan-to-value, you control when it ends. Paying down principal, or a rise in your home's value confirmed by an appraisal, can let you cancel it ahead of the automatic schedule.
Compare PMI against alternatives. FHA loans carry their own mortgage insurance that often lasts the life of the loan, while a piggyback second mortgage can avoid PMI altogether. The right path depends on your down payment and credit.
PMI Calculator FAQ
When does PMI go away?
On a conventional loan, PMI automatically ends when your balance reaches 78% of the original value, and you can request cancellation at 80%. A new appraisal showing higher value can speed this up.
How can I avoid PMI?
Put at least 20% down on a conventional loan, use a VA or USDA loan if eligible, or consider a piggyback second mortgage. Each approach has trade-offs the calculator can help you weigh.