PMI Calculator
Estimate monthly PMI and your loan-to-value ratio, then see how much principal this estimate suggests paying down to reach 80% LTV.
How monthly PMI is estimated
PMI is usually quoted as an annual percent of the loan amount. Example: a $320,000 loan at 0.5% annual PMI costs $1,600 a year, or about $133 a month.
The rate applies to the loan balance, not the purchase price. As you pay the mortgage down, some PMI structures lower the premium; others keep a set amount until you hit cancellation or automatic termination thresholds tied to original value — rules and timing depend on the loan and lender.
What the results mean
Monthly PMI is the estimated insurance premium divided into 12 payments. Annual PMI is loan amount × your entered rate. LTV shows how much you borrowed relative to home value — above 80% on many conventional loans is when PMI often applies. Principal to 80% LTV is how much balance you would need to pay down to reach 80% of the price you entered (not necessarily today's market value).
What is PMI?
Private mortgage insurance is coverage for the lender — not for you — on many conventional loans when the down payment is less than 20%. If you stop paying and the home sells for less than what is owed, PMI helps the lender recover part of the loss.
Read the full explainer: What is PMI?
How PMI is calculated
Monthly PMI = Annual PMI ÷ 12
PMI is based on the loan amount, not the home's full price. The rate is set by your lender or insurer — enter what you were quoted. See how PMI is calculated for more detail.
PMI vs interest vs homeowners insurance
| PMI | Mortgage interest | Homeowners insurance | |
|---|---|---|---|
| Who it protects | Lender | N/A (cost of borrowing) | You (property coverage) |
| Based on | Loan amount & insurer rate | Rate & balance | Home value & policy |
| Builds equity? | No | No — principal does | No |
| Typical when | LTV above 80% on many conventional loans | Any loan with a balance | Most financed homes |
FHA loans use mortgage insurance premiums (MIP), not PMI. See PMI vs mortgage insurance.
How loan-to-value affects PMI
LTV = loan amount ÷ home value. A 10% down payment on a $400,000 home is 90% LTV. Insurers often charge higher annual rates at higher LTV and lower credit scores. As you pay down principal, you may qualify to remove PMI on qualifying conventional loans.
When PMI may be removed
On many conventional loans, you may request cancellation near 80% of the home's original value. Automatic termination on the scheduled balance often applies near 78% of original value if requirements are met. FHA MIP, lender-paid PMI, and appraisal-based requests follow different rules.
Important assumptions
- Applies to conventional PMI estimates — not FHA MIP or VA funding fees.
- Uses the annual rate you enter; we do not look up insurer pricing.
- PMI is calculated on the initial loan amount in this calculator, not a declining balance schedule unless your insurer uses that structure.
- 80% LTV threshold is a common conventional benchmark; your loan program may differ.
- Does not model automatic PMI drop-off inside an amortization schedule.