Mortgage Insurance (PMI) Calculator

About this calculator

Private mortgage insurance protects the lender, not you, when a conventional loan closes with less than 20% down — a loan-to-value above 80%. The premium is typically quoted as an annual percentage of the loan balance, commonly between 0.3% and 1.5% depending on your credit score and down payment size, and lenders usually split it into equal monthly installments added to your mortgage payment.

Homebuyers run this calculation before closing to see how much PMI adds to their true monthly cost, and again during the loan term to track when they can drop it. Under the U.S. Homeowners Protection Act, a lender must automatically cancel PMI once the loan amortizes down to 78% of the home's original value, and a borrower can request cancellation earlier, at 80% LTV, once they have a solid payment history.

This calculator takes your loan amount, PMI rate and home value and returns your monthly and annual PMI premium, plus the loan balance at which it can be cancelled, so you know exactly what you are paying and for how long.