Does this calculator handle FHA mortgage insurance premiums (MIP)?

No. FHA MIP has its own rules and often lasts 11 years or for the life of the loan depending on down payment and case number date. This calculator is designed for conventional PMI tied to LTV thresholds on standard conforming loans.

What if I plan to make extra principal payments?

Extra principal payments can reduce your balance faster and help you hit the PMI drop LTV earlier than the standard schedule suggests. This calculator assumes scheduled payments only; you can approximate prepayments by mentally shortening the PMI duration or by re‑running the numbers with a lower effective balance.

Can I request PMI removal at 80% LTV?

Many conventional loan servicers allow you to request PMI cancellation when your loan reaches 80% of the original value, assuming you are current and meet other conditions. Automatic cancellation often occurs around 78% LTV. Always confirm the exact rules with your lender or servicer.

How does my credit score affect PMI?

PMI pricing is heavily influenced by your credit score, LTV, and loan characteristics. Borrowers with stronger credit and lower LTVs generally receive lower PMI rates. This calculator uses the PMI rate you enter; you should obtain an actual quote from your lender for accuracy.

Does this calculator include property taxes, insurance, or HOA dues?

No. It focuses on the mortgage principal and interest payment plus PMI. You should add estimates for property taxes, homeowners insurance, and HOA dues separately to see your full monthly housing payment.

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

Overview

Private mortgage insurance (PMI) is one of the biggest wild cards in the cost of a low‑down‑payment conventional mortgage. It lets you buy with less than 20% down, but it also adds a monthly charge on top of your principal and interest until your loan balance drops far enough relative to your home’s value. Understanding how big that monthly PMI line item is, how long it sticks around, and how much you will pay in total can make a huge difference when you are choosing between down payment options or deciding whether to pay extra toward principal.

How to use this calculator

Enter the home value you are buying or refinancing. This should match either the purchase price or the appraised value your lender will use for LTV calculations.
Enter your planned down payment as a percentage of the home value. The calculator will compute the loan amount and starting LTV from this value.
Input your mortgage APR (annual percentage rate) and the term in years (for example, 30 years for a standard fixed‑rate mortgage). These determine your base P&I payment and amortization schedule.
Enter an annual PMI rate as a percentage of the loan amount. If you have a quote from your lender, use that rate; otherwise, choose a conservative estimate in the typical range for your credit profile and LTV.
Set a PMI drop LTV (%) threshold—80% if you are modeling removal by request, or 78% if you want to approximate automatic cancellation under many conventional PMI rules.
Review the outputs: your loan amount, starting LTV, monthly PMI, basic monthly P&I payment, monthly payment with PMI while in effect, months until PMI drops, total PMI paid, and total interest on the loan.
Adjust down payment, PMI rate, or the drop LTV threshold to see how each factor changes PMI duration and total cost. You can also experiment with different rates and terms to reflect changing market conditions or product choices.

Inputs explained

Home value: The home’s purchase price or appraised value used to calculate loan‑to‑value (LTV). PMI is usually based on LTV relative to this value, so accurate numbers matter. For purchases, this is typically the contract price unless the appraisal comes in lower.
Down payment (%): The percentage of the home value you plan to pay upfront. A lower down payment means a higher starting LTV, which can trigger PMI and extend how long you pay it. A higher down payment may reduce or eliminate PMI altogether.
Interest rate (APR %): The annual interest rate on your mortgage, expressed as APR. The calculator uses this rate with your term to compute the monthly P&I payment and amortization pattern, which determine how quickly your balance falls toward the PMI drop threshold.
Term (years): The length of your mortgage in years (for example, 30 years). Longer terms have lower payments but slower principal paydown, which can keep PMI in place longer. Shorter terms accelerate principal reduction and may shorten the PMI period.
PMI rate (annual % of loan): The annual cost of PMI as a percentage of the original loan amount. Actual PMI rates vary based on credit score, LTV, loan type, and other risk factors. Using the rate from your lender’s quote will give the most accurate estimate; otherwise, choose a reasonable value in the typical range (for many borrowers, roughly 0.3–1.5% annually).
PMI drop LTV (%): The LTV percentage at which PMI is modeled to end. Many conventional loans allow you to request PMI removal at 80% LTV (based on the original value) and require automatic cancellation near 78% LTV, assuming you are current on payments. Set this to the threshold that matches your policy or what you want to model.

Outputs explained

Loan amount: The mortgage principal calculated from your home value and down payment. This is the starting loan balance used for both the payment calculation and the PMI charge.
Starting LTV: Your initial loan‑to‑value ratio, computed as Loan amount ÷ Home value. Values above 80% typically require PMI on conventional loans; lower LTVs may avoid PMI entirely.
Monthly PMI: The estimated monthly PMI charge based on your loan amount and annual PMI rate. This amount is added to your base P&I payment while PMI is in effect.
Monthly payment (P&I): The mortgage payment for principal and interest only, calculated using the standard fixed‑rate amortization formula with your rate and term. This does not include PMI, taxes, insurance, or HOA dues.
Payment with PMI: Your combined P&I payment plus the monthly PMI amount, showing the total mortgage payment while PMI is being charged (before adding any escrow items like taxes and insurance).
Months until PMI drops: The estimated number of months from the start of the loan until your balance falls to the LTV threshold you set. If your starting LTV is already at or below the threshold, this value is zero, indicating that PMI is not needed under the modeled rules.
Total PMI paid: The cumulative PMI amount you pay over all months where PMI is in force, from the start of the loan until the balance reaches the drop LTV threshold. This shows how much the risk protection you are buying for the lender actually costs you over time.
Total interest (P&I): The total interest paid on the mortgage over the full term, assuming you make scheduled payments and do not prepay. While not directly a PMI cost, it provides context for the overall cost of financing versus the cost of PMI alone.

How it works

This PMI cost calculator starts by computing your loan amount from the home value and down payment percentage you enter. Loan = Home value × (1 − Down payment %). It also computes your starting loan‑to‑value ratio (LTV) as Loan ÷ Home value, which tells you how far you are from the 80%–78% LTV thresholds where many conventional PMI policies can be removed.

Next, the calculator determines your monthly principal‑and‑interest (P&I) payment using a standard fixed‑rate amortization formula based on the loan amount, annual interest rate (APR), and term in years that you choose. This matches how many mortgage calculators compute the base payment before escrows and PMI.

You then provide an annual PMI rate expressed as a percentage of the original loan amount. The calculator converts this to a monthly PMI charge using PMI monthly = Loan × (PMI annual rate ÷ 12). For example, a 0.6% annual PMI rate on a $360,000 loan works out to about $180 per month.

With the monthly P&I payment and monthly PMI set, the calculator simulates your mortgage amortization month by month. For each month, it splits the P&I payment into interest (Balance × Monthly rate) and principal (Payment − Interest), then reduces the balance by the principal portion.

At the same time, the calculator tracks a loan balance threshold corresponding to your chosen PMI drop LTV. That threshold is Value × LTV threshold—for example, 80% of the original home value if you set the drop point at 80% LTV.

The simulation continues until either the loan is paid off, the balance drops to or below the LTV threshold, or the full term is reached. For each month where PMI is in force, the calculator adds one month of PMI to a running total.

The number of months in the simulation before hitting the threshold becomes Months until drop. If your starting LTV is already at or below the drop LTV (for example, you put 20% down or more), Months until drop is zero and PMI never applies.

Finally, the calculator reports your monthly PMI, your base P&I payment, your monthly payment with PMI while it is in effect, and total PMI paid until the drop LTV is reached. It also shows total interest over the full term for context.

Formula

Loan = Home value × (1 − Down%)
PMI monthly ≈ Loan × (PMI annual % ÷ 12)
Monthly P&I = standard fixed‑rate amortization at APR and term
LTV threshold balance = Home value × PMI drop LTV%
Simulate month‑by‑month: Balance_{next} = Balance − (P&I payment − Balance × monthly rate)
Stop PMI when Balance ≤ LTV threshold balance; Total PMI ≈ PMI monthly × Months until drop

When to use it

Budgeting the full monthly payment on a low‑down‑payment mortgage, including both P&I and PMI, so you know whether the payment fits your budget before you make an offer.
Comparing how different down payment percentages affect PMI duration and total cost—especially when you are close to the 20% threshold that can eliminate PMI entirely.
Planning extra principal payments to reach an 80% LTV sooner, shorten the PMI period, and see how much you could save by dropping PMI a few years early.
Evaluating whether it makes more sense to use extra cash to increase your down payment and avoid or reduce PMI versus using that cash for other goals and accepting PMI for a while.
Testing different PMI drop LTV assumptions, such as removal at 80% versus 78%, to approximate lender-specific PMI policies or your own plans for requesting cancellation.

Tips & cautions

If you are one or two percentage points away from a 20% down payment, it can be useful to compare the added upfront cash to the total PMI you would pay over time. Sometimes a slightly higher down payment can save thousands in PMI.
Because PMI rates are sensitive to credit score and LTV, using an actual quote from your lender will produce much more accurate results than generic estimates.
PMI is only one piece of your total housing cost. Be sure to also factor in property taxes, homeowners insurance, HOA dues, and maintenance when deciding whether a payment is affordable.
If you plan aggressive principal prepayments, consider modeling your own expected PMI duration rather than assuming the full schedule. The sooner your balance hits the drop LTV, the less PMI you will pay.
Keep in mind that lender policies for requesting PMI removal may include requirements beyond hitting a specific LTV, such as a clean payment history, minimum time elapsed, or a new appraisal.
The calculator assumes a fixed interest rate and standard amortization over the chosen term. Adjustable‑rate mortgages or loans with interest‑only periods can have very different paydown patterns and PMI timelines.
It models PMI as a constant monthly amount based on the original loan balance and your input PMI rate. In reality, some PMI structures can change over time or have different pricing tiers.
It treats the home value as fixed for LTV calculations. Actual PMI cancellation rules may consider current market value via a new appraisal, which could shorten or lengthen the PMI period.
FHA, VA, USDA, and other non‑conventional mortgage insurance structures often follow different rules for when and whether insurance can be removed. This tool is focused on conventional PMI tied to LTV thresholds.
Results are estimates and do not reflect lender‑specific underwriting policies, credit overlays, or regulatory nuances. Only your lender can tell you the exact PMI terms and cancellation rules for your loan.

Worked examples

$400k value, 10% down, 6.75%/30yr, 0.6% PMI, drop at 80% LTV

Loan = $400,000 × (1 − 10%) = $360,000; starting LTV = 360,000 ÷ 400,000 = 90%.
Monthly P&I at 6.75% over 30 years is roughly $2,335 (principal and interest only).
PMI monthly ≈ $360,000 × 0.6% ÷ 12 ≈ $180, making the combined payment with PMI about $2,515 before taxes and insurance.
Simulating amortization, the balance falls to 80% LTV (320,000) after roughly 98 months, so Months until drop ≈ 98.
Total PMI paid ≈ 98 × $180 ≈ $17,640 before PMI ends under these assumptions.

$350k value, 5% down, 7.1%/30yr, 0.9% PMI, drop at 78% LTV

Loan ≈ $350,000 × (1 − 5%) = $332,500; starting LTV ≈ 95%.
Monthly P&I at 7.1% over 30 years is about $2,235 before PMI.
PMI monthly ≈ $332,500 × 0.9% ÷ 12 ≈ $249, bringing the payment with PMI to roughly $2,484 before escrows.
The balance reaches 78% LTV (≈ $273,000) after about 143 months in this scenario, so PMI persists for roughly 12 years.
Total PMI paid ≈ 143 × $249 ≈ $35,600 under the modeled assumptions.

Deep dive

This PMI cost calculator estimates your monthly PMI charge, your mortgage payment with PMI, how many months PMI will last based on LTV, and total PMI paid until it drops.

Use it to compare down payment options, see how extra principal payments might shorten your PMI timeline, and decide whether paying PMI is worth it versus waiting or buying a smaller home.

FAQs

Does this calculator handle FHA mortgage insurance premiums (MIP)?: No. FHA MIP has its own rules and often lasts 11 years or for the life of the loan depending on down payment and case number date. This calculator is designed for conventional PMI tied to LTV thresholds on standard conforming loans.
What if I plan to make extra principal payments?: Extra principal payments can reduce your balance faster and help you hit the PMI drop LTV earlier than the standard schedule suggests. This calculator assumes scheduled payments only; you can approximate prepayments by mentally shortening the PMI duration or by re‑running the numbers with a lower effective balance.
Can I request PMI removal at 80% LTV?: Many conventional loan servicers allow you to request PMI cancellation when your loan reaches 80% of the original value, assuming you are current and meet other conditions. Automatic cancellation often occurs around 78% LTV. Always confirm the exact rules with your lender or servicer.
How does my credit score affect PMI?: PMI pricing is heavily influenced by your credit score, LTV, and loan characteristics. Borrowers with stronger credit and lower LTVs generally receive lower PMI rates. This calculator uses the PMI rate you enter; you should obtain an actual quote from your lender for accuracy.
Does this calculator include property taxes, insurance, or HOA dues?: No. It focuses on the mortgage principal and interest payment plus PMI. You should add estimates for property taxes, homeowners insurance, and HOA dues separately to see your full monthly housing payment.

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This PMI cost calculator provides educational estimates of PMI and mortgage costs based on the assumptions you enter. It simplifies amortization and PMI rules and does not account for all lender‑specific policies, credit factors, or regulatory requirements. The results are not mortgage, financial, or legal advice. Always review official loan disclosures and consult your lender or a qualified professional before making borrowing or home‑buying decisions.