Home › Calculators › PMI Calculator

PMI Calculator — Monthly Cost & Removal Timeline

Private mortgage insurance (PMI) is required when you put down less than 20% on a conventional loan. It protects the lender — not you — and adds $100–$300/month to your payment. This calculator shows your exact monthly PMI cost and the precise month it drops off your loan, both via scheduled payments and via home appreciation.

Your loan details

Home purchase price

Down payment

Mortgage rate

PMI rate

Typical: 0.5–1.5% of loan/year

Annual home appreciation

Used for appreciation-based removal

Monthly PMI cost

—

Added to your payment

PMI drops off (payments only)

—

Via scheduled amortization

PMI drops off (with appreciation)

—

Faster via rising home value

Total PMI paid

—

Appreciation scenario

Loan amount—

Down payment %—

Monthly PMI premium—

Annual PMI cost—

PMI cancels (payments only) — month—

PMI cancels (with appreciation) — month—

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 do not have to wait for automatic cancellation at 78%. If your home has appreciated significantly, pay for a new appraisal ($300–$600) to establish a higher current value. If new value puts your LTV below 80%, your lender must remove PMI. This can save years of payments worth thousands of dollars.

PMI Cost by Down Payment Percentage

Down payment	On $400K home	Loan amount	Est. monthly PMI	PMI cancels approx.
3%	$12,000	$388,000	~$275/mo	Year 11–12
5%	$20,000	$380,000	~$269/mo	Year 10–11
10%	$40,000	$360,000	~$255/mo	Year 8–9
15%	$60,000	$340,000	~$193/mo	Year 5–6
20%	$80,000	$320,000	$0 — no PMI	N/A

PMI Removal Rules You Must Know

What is PMI and when is it required?

📚 PMI (Private Mortgage Insurance) protects the lender if you default. Required on conventional loans when your down payment is less than 20%. Costs 0.5%–1.5% of the loan amount annually, paid monthly. Does NOT protect you — only the lender. FHA loans have a different product called MIP (Mortgage Insurance Premium) which works differently and is often permanent.

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 scheduled amortization. You can request cancellation at 80% LTV with a good payment history. PMI also cancels at the midpoint of your loan term regardless of balance. None of these thresholds account for appreciation — you need a new appraisal to use your home's increased value.

Is FHA mortgage insurance the same as PMI?

No. FHA loans have MIP (Mortgage Insurance Premium), not PMI. Critical difference: if you put less than 10% down on an FHA loan, MIP is permanent for the life of the loan. The only way to remove it is to refinance into a conventional loan once you have 20% equity. This is a major reason to choose conventional over FHA if you qualify — conventional PMI cancels automatically, FHA MIP does not.

How do I use my home's appreciation to remove PMI early?

Once you believe your home has appreciated enough to push your LTV below 80%, contact your lender and request PMI cancellation based on current value. The lender will require a formal appraisal (typically $300–$600, which you pay). If the appraisal confirms your LTV is 80% or below based on the new value, PMI must be removed. Most lenders require you to have had the loan for at least 2 years before allowing appreciation-based removal.