PMI Calculator
Estimate your monthly private mortgage insurance cost and see exactly when you can request cancellation (80% LTV) and when your lender must remove it automatically (78% LTV).
Loan Details
Down payment: $30,000 (7.5%)
Typically 0.5%–1.0% of the loan per year
Monthly PMI Cost
$185
Current LTV is 92.5% — PMI applies until you reach 78%
When Does PMI Go Away?
Request at 80% LTV
You can ask your lender to cancel PMI
9 yr 2 mo
into the loan (by scheduled payments)
Auto-Cancel at 78% LTV
Lender must terminate PMI automatically
10 yr 3 mo
into the loan (by scheduled payments)
Monthly PMI
$185
Annual PMI
$2,220
Total PMI Until Auto-Cancel
$22,570
How Private Mortgage Insurance Works
When you put down less than 20% on a conventional loan, your lender requires private mortgage insurance to protect itself against the higher risk of a smaller down payment. PMI is added to your monthly mortgage payment and continues until you build enough equity in the home. It does not protect you — it only reimburses the lender if you default.
The cost is expressed as an annual percentage of your loan balance, usually between 0.5% and 1.5%, and is paid in twelve monthly installments. Borrowers with higher credit scores and larger down payments pay lower PMI rates. Because the premium is based on your loan amount, PMI gradually becomes a smaller share of your payment as you pay down principal.
The Homeowners Protection Act gives you two key milestones, both measured against the home's original value. At 80% loan-to-value you may request that PMI be cancelled. At 78% the lender must terminate it automatically, as long as your payments are current. The calculator above uses standard amortization to show you the month each threshold is reached based on your scheduled payments — and remember, extra principal payments can get you there faster.
Frequently Asked Questions
What is PMI and why do I have to pay it?
Private mortgage insurance (PMI) is a policy that protects the lender — not you — if you default on a conventional loan. Lenders require it whenever your down payment is less than 20% (a loan-to-value ratio above 80%) because a smaller down payment is considered higher risk. PMI lets you buy a home sooner without saving a full 20% down.
How much does PMI cost per month?
PMI typically costs between 0.5% and 1.5% of the loan amount per year, divided into monthly payments. The exact rate depends on your credit score, loan-to-value ratio, and loan type. On a $370,000 loan at 0.6%, PMI is about $2,220 per year, or roughly $185 per month, until you reach the cancellation threshold.
When does PMI get cancelled?
Under the Homeowners Protection Act, you can request PMI cancellation once your loan balance reaches 80% of the home's original value, and the lender must automatically terminate it at 78% — both based on the original purchase price and your scheduled payment schedule. PMI also ends at the loan's midpoint regardless of balance. Making extra payments can reach 80% sooner and let you request removal early.
How can I avoid paying PMI?
The most direct way is to put down 20% or more. Other options include a piggyback loan (an 80-10-10 structure where a second loan covers part of the down payment), lender-paid PMI (built into a higher interest rate), or VA loans, which require no PMI for eligible borrowers. You can also reach the 80% threshold faster by making extra principal payments.