$400k value, 10% down, 6.75%/30yr, 0.6% PMI, drop at 80% LTV
- Loan = $360k; start LTV = 90%
- Monthly PMI ≈ $180; P&I ≈ $2,335
- PMI lasts ≈ 98 months; total PMI ≈ $17,640
finance calculator
PMI Cost Calculator
Estimate your monthly PMI, how long you’ll pay it, and total PMI cost until it drops based on LTV and amortization.
Results
- Loan amount
- $360,000
- Starting LTV
- 90.00%
- Monthly PMI
- $180
- Monthly payment (P&I)
- $2,335
- Payment with PMI
- $2,515
- Months until PMI drops
- 98.00
- Total PMI paid
- $17,640
- Total interest (P&I)
- $480,583
How to use this calculator
- Enter home value and down payment percent to compute the loan amount and starting LTV.
- Enter your mortgage APR, term, PMI rate, and LTV threshold for dropping PMI.
- Review monthly PMI, payment with PMI, and months until PMI ends.
- See total PMI paid until the LTV threshold is reached.
Inputs explained
- Down payment %
- Lower down increases LTV and PMI duration/cost.
- PMI rate
- Annual PMI as a % of the loan; varies by credit/loan type.
- PMI drop LTV
- Commonly 80% for requests or 78% automatic.
How it works
Loan amount = Home value − down payment. Starting LTV = loan ÷ value.
Monthly P&I uses your APR/term. Monthly PMI = loan × (PMI annual %) ÷ 12.
We amortize monthly until balance hits the target LTV (e.g., 80%). Total PMI = monthly PMI × months until drop.
Formula
Loan = Home value × (1 − Down%) PMI monthly = Loan × (PMI% ÷ 12) Payment = standard amortization at APR/term Drop when Balance ≤ Value × LTV threshold
When to use it
- Budgeting total PMI cost on a low-down-payment mortgage.
- Planning extra principal to reach 80% LTV faster and drop PMI.
- Comparing PMI cost to buying points or increasing down payment.
Tips & cautions
- If you’re close to 20% down, compare the extra down vs PMI cost over time.
- Use a conservative PMI rate if you don’t have a firm quote yet.
- Many lenders auto-drop at 78% but allow requests at 80% with good payment history—set the threshold accordingly.
- Assumes fixed-rate amortization and constant PMI until LTV hits the threshold; FHA/MIP rules differ.
- Does not include taxes/insurance/HOA/MI rate changes.
- PMI rate used is user-entered; actual quotes vary by credit score, LTV, and program.
Worked examples
$350k value, 5% down, 7.1%/30yr, 0.9% PMI, drop at 78% LTV
- Loan = $332,500; start LTV = 95%
- Monthly PMI ≈ $249; P&I ≈ $2,235
- PMI lasts ≈ 143 months; total PMI ≈ $35,661
Deep dive
This PMI cost calculator estimates your monthly PMI, payment with PMI, how long it lasts, and total PMI paid until your loan reaches the target LTV.
Use it to compare down payment options, plan extra principal, or decide if PMI is worth it versus waiting to buy.
FAQs
- Does this handle FHA MIP?
- No. FHA MIP rules differ (often last 11 years or life of loan). This models conventional PMI with an LTV drop threshold.
- What if I pay extra principal?
- Extra payments can drop PMI sooner. Add them by re-running with a lower balance or shorter expected PMI duration.
- Can I request removal at 80% LTV?
- Usually yes with good payment history. Automatic drop is often at 78%. Set your threshold accordingly.
- Does PMI change with credit score?
- Yes. PMI rates vary by credit, LTV, and loan type. Enter the rate quoted by your lender for best accuracy.
- Are taxes/insurance included?
- No. This focuses on P&I and PMI only. Add escrow items separately to see full payment.
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Estimates only. PMI pricing, drop rules, and eligibility vary by lender/investor. Confirm with your lender before relying on these figures.