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Finance

PMI Calculator

Find out exactly what PMI costs you — and when it ends.

Mortgage & PMI Details

Loan-to-Value Ratio

LTV: 90.00%
0%80% threshold100%

Your LTV of 90.00% is above 80%, so PMI is required. You need $40,000.00 more equity to eliminate PMI.

PMI Cost Breakdown

Monthly PMI$165.00added to your payment
Annual PMI$1,980.00at 0.55% of loan
Down Payment10.00%$40,000.00
Est. PMI Drop-off8 yrs 5 mountil 80% LTV at ~7% rate

Total PMI Cost Estimate

Total PMI Paid

$16,665

over ~8 yrs 5 mo

Equity Needed to Cancel

$40,000.00

to reach 80% LTV

Target Balance

$320,000.00

80% of home value

Tip: You can request PMI cancellation once your loan balance reaches 80% of the original home value. Lenders are required to automatically cancel PMI at 78% LTV under the Homeowners Protection Act.

PMI Rate Comparison

PMI RateMonthly PMIAnnual PMITotal (est.)
0.20%$60.00$720.00$6,060
0.35%$105.00$1,260.00$10,605
0.55%current$165.00$1,980.00$16,665
0.75%$225.00$2,700.00$22,725
1.00%$300.00$3,600.00$30,300
1.25%$375.00$4,500.00$37,875
1.50%$450.00$5,400.00$45,450

Disclaimer: PMI costs and drop-off estimates are for informational purposes only. The drop-off timeline uses an assumed 7% annual interest rate for illustration. Actual PMI rates, terms, and cancellation rules vary by lender, loan type, and credit profile. Consult your lender or a licensed mortgage professional for precise figures.

About

Private mortgage insurance (PMI) is typically required when your down payment is less than 20%, adding $50–$200+ to your monthly payment. Our free PMI calculator estimates your monthly PMI cost, annual premium, and loan-to-value (LTV) ratio instantly. See how long you'll pay PMI and exactly how much equity you need to cancel it.

FAQ
What is PMI and when is it required?+

Private mortgage insurance (PMI) protects the lender if you default on your loan. It is typically required on conventional loans when your down payment is less than 20% of the home's purchase price — meaning your loan-to-value ratio (LTV) exceeds 80%.

How much does PMI cost per month?+

PMI rates typically range from 0.20% to 1.50% of the original loan amount per year, billed monthly. On a $360,000 loan at 0.55%, that equals about $165 per month. Your exact rate depends on your credit score, down payment size, and loan type.

How do I get rid of PMI?+

You can request PMI cancellation once your loan balance falls to 80% of the original home value. Under the Homeowners Protection Act, lenders must automatically cancel PMI when your balance reaches 78% LTV. You may also request cancellation earlier if your home has appreciated and a new appraisal supports a lower LTV.

Does PMI protect me as the borrower?+

No. PMI protects the lender, not you. It covers the lender's losses if you default. It provides no direct financial benefit to the borrower, which is why eliminating it as quickly as possible — by paying down principal or making extra payments — saves you real money.

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