PMI Calculator
Private mortgage insurance (PMI) is required on conventional loans with less than 20% down, and it protects the lender — not you — in the event you default. It typically costs 0.3% to 1.5% of the loan amount per year, added to your monthly payment, and it's one of the hidden costs of a low-down-payment loan that many buyers underestimate. This calculator estimates your monthly and annual PMI based on your home price, down payment, and PMI rate, and it shows the down payment needed to remove PMI. Enter the home price, your down payment, and the PMI rate (as a percentage of the loan), and the calculator returns your monthly and annual PMI cost and the down payment needed to reach 80% loan-to-value and remove PMI. The exact PMI rate depends on your credit score, down payment, and loan type, with better credit and larger down payments earning lower rates. Once your loan-to-value reaches 80% — through payments or appreciation — you can request PMI cancellation, and it auto-terminates at 78% LTV, so PMI is temporary on conventional loans. PMI is different from the Mortgage Insurance Premiums (MIP) charged on FHA loans, which often last the life of the loan and usually can't be removed, which is a key reason to compare conventional and FHA financing carefully. Whether to wait until you have 20% down to avoid PMI is a judgment call: PMI may be worth paying to buy sooner, especially if home prices or rates are rising, so compare the PMI cost against the cost of waiting and potentially paying a higher price or rate. Use this calculator to estimate a hidden cost of low-down-payment loans, to see the down payment needed to remove PMI, and to compare low-down-payment options against waiting to put 20% down.
PMI Calculator
Estimate private mortgage insurance (PMI) when your down payment is under 20%.
Monthly PMI
$165
LTV 90% — PMI required
Loan amount
$360,000
Annual PMI
$1,980
Down payment to remove PMI
$80,000
20% of home price
PMI is required on conventional loans with less than 20% down. It protects the lender, not you. Once your loan-to-value reaches 80%, you can request to cancel it.
How to Use This Calculator
- 1Enter the home price.
- 2Enter your down payment.
- 3Enter the PMI rate (as a percentage of the loan).
- 4Read your monthly and annual PMI cost.
Why It Helps
- ✓Estimates a hidden cost of low-down-payment loans.
- ✓Shows the down payment needed to remove PMI.
- ✓Helps compare low-down-payment options.
- ✓Encourages reaching 20% down to avoid PMI.
About This Calculator
Private mortgage insurance (PMI) is required on conventional loans with less than 20% down, and it protects the lender — not you — in the event you default. It typically costs 0.3% to 1.5% of the loan amount per year, added to your monthly payment, and it's one of the hidden costs of a low-down-payment loan that many buyers underestimate. This calculator estimates your monthly and annual PMI based on your home price, down payment, and PMI rate, and it shows the down payment needed to remove PMI. Enter the home price, your down payment, and the PMI rate (as a percentage of the loan), and the calculator returns your monthly and annual PMI cost and the down payment needed to reach 80% loan-to-value and remove PMI. The exact PMI rate depends on your credit score, down payment, and loan type, with better credit and larger down payments earning lower rates. Once your loan-to-value reaches 80% — through payments or appreciation — you can request PMI cancellation, and it auto-terminates at 78% LTV, so PMI is temporary on conventional loans. PMI is different from the Mortgage Insurance Premiums (MIP) charged on FHA loans, which often last the life of the loan and usually can't be removed, which is a key reason to compare conventional and FHA financing carefully. Whether to wait until you have 20% down to avoid PMI is a judgment call: PMI may be worth paying to buy sooner, especially if home prices or rates are rising, so compare the PMI cost against the cost of waiting and potentially paying a higher price or rate. Use this calculator to estimate a hidden cost of low-down-payment loans, to see the down payment needed to remove PMI, and to compare low-down-payment options against waiting to put 20% down.
Disclaimer: This calculator provides estimates for educational purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation.
Frequently Asked Questions
What is PMI?
Private mortgage insurance, required on conventional loans with less than 20% down. It protects the lender if you default — not you.
How much does PMI cost?
Typically 0.3% to 1.5% of the loan amount per year, depending on your credit score, down payment, and loan type. It is added to your monthly payment.
When can I remove PMI?
Once your loan-to-value reaches 80% (through payments or appreciation), you can request cancellation. It auto-terminates at 78% LTV.
Is PMI the same as MIP on FHA loans?
No. FHA loans charge Mortgage Insurance Premiums (MIP), which often last the life of the loan. Conventional PMI can be removed; FHA MIP usually cannot.
Should I wait until I have 20% down to avoid PMI?
Not always. PMI may be worth paying to buy sooner, especially if home prices or rates are rising. Compare the PMI cost against the cost of waiting.
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Written by
James MitchellSenior Financial Analyst & Personal Finance Expert
Certified Financial Planner (CFP) • MBA in Finance, University of Chicago Booth School of Business