PMI Calculator

Use this free PMI calculator to estimate your private mortgage insurance payment, see when you can drop it, and find out how much you’ll pay in PMI before it ends. You can also see how extra principal payments help you cancel PMI sooner.

How to Use This PMI Calculator

1. Enter the home price and your down payment. PMI usually applies to conventional loans when you put down less than 20%.
2. Enter your mortgage rate and loan term. These set your principal and interest payment and how fast your balance falls.
3. Enter your PMI rate. Use the rate from your Loan Estimate if you have one. Otherwise, start with the default and adjust.
4. Try extra payments (optional). Open Get rid of PMI sooner to see how extra principal moves up the date you can cancel.

What Is PMI?

Private mortgage insurance (PMI) protects the lender, not you, if you stop making payments on a conventional mortgage. Lenders usually require it when your down payment is less than 20% of the home’s price. It’s most often added to your monthly mortgage payment.

How PMI Is Calculated

Monthly PMI = Loan amount × Annual PMI rate ÷ 12

Your PMI rate depends mainly on your credit score, your down payment, and your loan type. Freddie Mac estimates PMI often costs roughly $30 to $70 a month for every $100,000 borrowed.

PMI Example

You buy a $400,000 home with 10% down ($40,000), so you borrow $360,000 on a 30-year loan at 6.50%. With a 0.60% PMI rate:

Principal and interest	$2,275.44 a month
PMI	$180.00 a month
Total (before taxes and insurance)	$2,455.44 a month
Can request cancellation (80% of original value)	After about 7 years, 11 months
Ends automatically (78%)	After about 9 years, 1 month
Total PMI if it runs until automatic removal	About $19,440

Adding $200 a month in extra principal would let you request cancellation after about 5 years, 4 months, cutting the PMI you pay to about $11,340.

When Does PMI Go Away?

Under the federal Homeowners Protection Act, PMI on most conventional loans can end in three ways:

• At 80%, if you ask: When your principal balance reaches 80% of the home’s original value, you can request cancellation in writing. You generally need a good payment history, no second mortgage, and proof the home hasn’t lost value.
• At 78%, automatically: Your servicer generally must end PMI on the date your balance is scheduled to reach 78% of the original value, as long as you’re current on payments.
• At the midpoint: PMI must end the month after you reach the halfway point of your loan term (15 years on a 30-year loan), even if you haven’t hit 78%, as long as you’re current.

“Original value” usually means the lower of the purchase price or the appraised value when you bought the home.

Ways to Avoid or Lower PMI

• Put 20% down. In the example, that’s $40,000 more up front.
• Improve your credit score before you apply. Higher scores usually get lower PMI rates.
• Make extra principal payments. You’ll reach 80% sooner and can ask to cancel.
• Ask about other options. Some lenders offer lender-paid mortgage insurance (usually a higher rate instead of a monthly PMI charge) or a piggyback second loan. Compare the total cost carefully.

PMI vs. FHA Mortgage Insurance

FHA loans don’t use PMI. They charge their own mortgage insurance premium (MIP), which includes an upfront fee and an annual premium, and it follows different cancellation rules. This calculator covers conventional loans only.

Frequently Asked Questions

How much is PMI on a $300,000 loan?

Using Freddie Mac’s rough range of $30 to $70 a month per $100,000 borrowed, PMI on a $300,000 loan would be about $90 to $210 a month. Your credit score and down payment set the exact amount.

Can I remove PMI if my home value goes up?

Possibly. The federal rules use your home’s original value, but many lenders and loan investors allow cancellation based on a new appraisal if your home has gained value. Ask your servicer about their requirements.

Is PMI tax deductible?

Tax rules for mortgage insurance premiums have changed several times. Check current IRS guidance or ask a tax professional for the year you’re filing.

Is PMI worth it?

PMI adds cost, but it can let you buy sooner instead of waiting years to save 20%. Compare the total PMI you’d pay with how long it would take to save the rest of the down payment.

Sources

• Consumer Financial Protection Bureau: When can I remove PMI from my loan?
• Consumer Financial Protection Bureau: What is private mortgage insurance?
• Freddie Mac: Breaking down PMI

This calculator provides estimates for educational purposes only and is not financial advice. Your lender’s Loan Estimate and servicer set your actual PMI cost and removal date. Last updated: October 12, 2026.