PMI Calculator

How much is PMI, and when does it go away? This PMI calculator works out your monthly private mortgage insurance from the home price and down payment, and shows the month the loan balance reaches 80% of the home value — when PMI can usually be dropped.

How to use this calculator

Enter the home price and your down payment.
Enter the rate and the loan term.
Enter the PMI rate — 0.5% of the loan per year is the example here.
The calculator shows the monthly PMI, when it drops off, and the total PMI you pay until then.

Formula and method

PMI is charged when the loan is more than 80% of the home value — when the down payment is under 20%. Monthly PMI = loan × PMI rate / 12. The calculator runs the amortization schedule month by month and finds the first month where the balance is 80% of the home price or less. Total PMI is the monthly amount times the number of months until that point.

Worked example

$400,000 home, $40,000 down (10%): the loan is $360,000, loan-to-value is 90%, and PMI at 0.5% a year is $150.00 a month. The balance reaches 80% of the home value ($320,000) in month 95 — about 7.92 years, or 7 years 11 months — and the total PMI paid by then is $14,100.00.

With 5% down ($20,000) on the same home, the loan is $380,000, PMI is $158.33 a month, it drops off in month 124 (10.33 years), and the total PMI paid is $19,475.00. With 20% down there is no PMI at all.

Frequently asked questions

How much is PMI on a $400,000 house?

With 10% down, PMI at 0.5% a year is $150.00 a month. With 5% down it is $158.33 a month. With 20% down there is no PMI. The rate varies by lender, credit score and loan type, so use the rate you are quoted.

When does PMI drop off?

Usually when the loan balance falls to 80% of the home's value. On the 10% down example above, that is month 95 — about 7 years 11 months in. You can ask your lender to remove it then; on many loans it drops off on its own at 78%.

How do I get rid of PMI early?

Pay extra toward principal, so the balance reaches 80% sooner — the extra payment calculator shows how much that helps. A higher home value helps too: if the home is reappraised at a higher value, the loan-to-value falls and PMI can end sooner.

Is PMI the same as homeowners insurance?

No. Homeowners insurance protects your home against damage. PMI protects the lender if you stop paying. PMI is an extra cost for you, with no benefit to you — which is why most buyers want it gone as soon as they can.

Do all loans have PMI?

No. Conventional loans charge PMI when the down payment is under 20%. FHA loans charge a mortgage insurance premium instead, with different rules. VA loans for eligible veterans have no PMI at all.

Sources and method. Standard amortization formula: monthly rate r = annual rate / 12, n = years × 12, payment M = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1). PMI usually ends when the loan balance reaches 80% of the home value (Consumer Financial Protection Bureau guidance). Affordability uses the 28/36 rule of thumb used by many lenders. Rates in examples are examples only, not live market rates. Results are estimates, not financial advice.

Estimate, not financial advice. This calculator uses the standard amortization formula and the numbers you type in. It is not a loan offer and not financial advice. A lender will check your credit, income and debts and quote its own rate and fees before you borrow.