PMI Calculator — Cost & Removal Timeline

Private mortgage insurance (PMI) is required when you put down less than 20%. It protects the lender — not you — and adds $100–$300/month to your payment. This calculator shows your exact PMI cost and the exact month it drops off.

Your loan details

Home purchase price

Down payment

Mortgage rate

PMI rate

Typical: 0.5–1.5% of loan/year

Annual home appreciation

Used to find appreciation-based PMI removal

Monthly PMI cost

—

Added to your payment

PMI drops off at

—

Via scheduled payments

With appreciation

—

Faster via rising home value

Total PMI paid

—

Before cancellation

Loan amount—

Down payment %—

Monthly PMI premium—

Month PMI cancels (payments only)—

Month PMI cancels (with appreciation)—

Months saved by appreciation—

Total PMI paid (appreciation scenario)—

How to remove PMI faster: You can request PMI cancellation once your loan balance reaches 80% of the original purchase price — you don’t have to wait for automatic cancellation at 78%. If your home has appreciated significantly, you can pay for a new appraisal (typically $300–$600) to establish a higher current value, which may get you to 80% LTV much sooner and save thousands in PMI premiums.

PMI Removal Rules You Must Know

What is PMI and when is it required?

📚 PMI (Private Mortgage Insurance) is insurance that protects the lender if you default on your loan. It is required on conventional loans when your down payment is less than 20% of the purchase price. PMI costs between 0.5%–1.5% of the loan amount annually, paid monthly. It does NOT protect you — only the lender.

When does PMI automatically cancel?

Under the Homeowners Protection Act of 1998, lenders must automatically cancel PMI when your loan balance reaches 78% of the original purchase price (based on your original amortization schedule). You can request cancellation at 80% LTV if you have a good payment history. PMI also cancels at the midpoint of your loan term regardless of balance.

Is FHA mortgage insurance the same as PMI?

No — FHA loans have MIP (Mortgage Insurance Premium), not PMI. FHA MIP works differently: if you put less than 10% down, MIP is permanent for the life of the loan. The only way to remove it is to refinance into a conventional loan. This is a major reason to choose conventional over FHA if you can qualify — PMI on conventional loans eventually cancels automatically.