PMI Calculator

Estimate your private mortgage insurance cost and loan-to-value ratio. See how much principal this estimate suggests paying down to reach 80% LTV.

Loan Details

Home Price

Down Payment ($)

Down Payment (%)

Annual PMI Rate (%)

Typical range: 0.2%–1.5%. Confirm with your lender.

Loan Amount$340,000

Loan-to-Value (LTV)85.0%

Monthly PMI$141.67

Annual PMI$1,700

Principal Needed to Eliminate PMI$20,000Amount to pay down to reach 80% LTV

PMI applies. Your LTV is 85.0%, which exceeds the 80% threshold. Pay down $20,000 more in principal (to $320,000 balance) to potentially eliminate PMI.

PMI estimates are based on the rate you entered. Actual PMI rates, requirements, and cancellation rules vary significantly by lender and loan type. This is not a lender commitment.

How PMI Is Calculated

PMI is calculated as an annual percentage of your loan amount. For example, if your loan amount is $320,000 and the annual PMI rate is 0.5%, your annual PMI cost is $1,600, or approximately $133 per month.

PMI is applied to the loan balance — not the home price. As you pay down your mortgage, your PMI cost may decrease depending on the structure your lender uses. On many conventional loans, borrowers may later request cancellation or see automatic termination when the balance reaches specified original-value thresholds, subject to applicable requirements.

Disclosure: PMI rates, availability, and cancellation rules vary significantly by lender, loan program, credit score, and market conditions. This calculator provides an estimate only. Verify with your lender before making financial decisions.

Frequently Asked Questions

: Private Mortgage Insurance (PMI) protects the lender if a borrower defaults on a conventional loan with less than 20% down. It does not protect the borrower. PMI is typically required when the loan-to-value (LTV) ratio exceeds 80%.
: PMI typically costs between 0.2% and 1.5% of the loan amount per year, depending on your credit score, loan type, loan amount, and lender. Your lender will provide the exact rate. This calculator uses the rate you enter as an estimate.
: On many conventional mortgages, borrowers may be able to request PMI cancellation when the principal balance reaches 80% of the home's original value, subject to applicable requirements. PMI generally terminates automatically when the scheduled principal balance reaches 78% of the home's original value, provided applicable requirements are met and the loan is current. Lender, loan-program, and Homeowners Protection Act rules vary. FHA, VA, USDA, and lender-paid PMI follow different structures.
: Some lenders offer "piggyback" loans or lender-paid PMI options. VA loans generally do not require PMI, though a VA funding fee typically applies instead. These alternatives have their own costs and requirements. Consult your lender for options.

Sources

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Estimates only. Not a lender commitment. See our financial disclaimer.

Loan Details

How PMI Is Calculated

Frequently Asked Questions

Sources

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