How this calculator works
PMI is estimated as a yearly percentage of the loan that rises as credit scores fall and drops with larger down payments. Using your amortization schedule, the calculator finds when the balance reaches 80% of the home price (when you can ask to cancel PMI) and 78% (when it's removed automatically).
Worked example
With the example values below: Monthly PMI, $140 (about 0.47% of the loan per year). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Home price | $400,000 |
| Down payment | 10% |
| Interest rate | 6.25% |
| Loan term | 30 years |
| Credit score | 720–739 |
When PMI is required
Conventional lenders generally require private mortgage insurance when the down payment is under 20%, because the loan-to-value ratio is above 80%. PMI protects the lender if you default; it doesn't protect you. It lets lenders offer conventional loans with as little as 3% down.
FHA loans have their own mortgage insurance (MIP), with different rules; see the FHA loan calculator. VA loans have no monthly mortgage insurance, and USDA loans charge an annual guarantee fee instead.
What affects your PMI rate
The calculator estimates PMI from your score and down payment, then uses your amortization schedule to find when it can be removed.
- Credit score: the biggest factor. Rates can be several times higher at 620 than at 760.
- Down payment: the closer you are to 20%, the lower the rate.
- Loan type and term: 15-year loans and fixed rates usually cost less than 30-year or adjustable loans.
- Debt-to-income ratio and occupancy also play a role.
Ways to pay PMI
Borrower-paid monthly PMI is the most common: a monthly charge that ends when you reach the removal thresholds. Single-premium PMI is paid once at closing, or financed, and doesn't add to the monthly payment, but you don't get it back if you sell or refinance early. Lender-paid PMI builds the cost into a higher interest rate for the life of the loan and can't be cancelled.
Some buyers use a piggyback loan, an 80% first mortgage plus a 10% second mortgage with 10% down, to avoid PMI entirely; compare it with the mortgage comparison calculator.
Removing PMI
Under the Homeowners Protection Act, you can request cancellation when your balance reaches 80% of the home's original value, and the lender must cancel it automatically at 78%, as long as you're current on payments. Extra principal payments reach those thresholds sooner; see the mortgage payoff calculator.
If your home has risen in value, some lenders will remove PMI based on a new appraisal, usually after you've owned the home for two to five years and reached 75% to 80% loan-to-value on the new value.
Frequently asked questions
What is PMI?
Private mortgage insurance protects the lender, not you, if you stop paying a conventional mortgage. Lenders usually require it when your down payment is less than 20% of the home price. It's added to your monthly payment until you build enough equity.
How much is PMI?
Typically about 0.3% to 1.5% of the loan amount per year, depending mostly on your credit score and down payment. On a $360,000 loan with a 720 score and 10% down, that works out to about $140 a month.
When does PMI go away?
You can ask your lender to cancel PMI once your balance reaches 80% of the home's original value, and it must end automatically at 78% if you're current on payments. It also ends at the midpoint of the loan term. FHA mortgage insurance follows different rules.
How can I get rid of PMI sooner?
Make extra principal payments to reach 80% loan-to-value faster, or, if your home has gained value, ask your lender about a new appraisal. Refinancing once you have 20% equity also removes it.
Is PMI tax-deductible?
Starting with 2026 returns, mortgage insurance premiums can again be deducted as mortgage interest if you itemize, under the 2025 federal tax law. The deduction phases out at higher incomes, starting at $100,000 of adjusted gross income, and doesn't help if you take the standard deduction.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.