Mortgage Insurance (PMI) Calculator

Calculate your monthly PMI cost, annual PMI expense, current LTV ratio, and when PMI will automatically drop off at 78% LTV. Compare conventional PMI vs FHA MIP.

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Monthly PMI
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Annual PMI —
Current LTV —
Months Until PMI Removal —
Extended More scenarios, charts & detailed breakdown ▾
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Monthly PMI
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Annual PMI Cost —
LTV Ratio —
Professional Full parameters & maximum detail ▾
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Monthly PMI/MIP
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Annual PMI Cost —
Total PMI Over Loan Life —
LTV Ratio —
Months Until PMI Removal —
Refi Break-even PMI Savings (mo) —

How to Use This Calculator

  1. Enter your home price and down payment %.
  2. Enter your interest rate and loan term.
  3. Results show monthly PMI, annual PMI, and months until PMI automatically drops off at 78% LTV.
  4. Use the Lump Sum vs Monthly tab to compare paying PMI monthly vs. an upfront single premium.
  5. Use the Professional tab to compare conventional PMI vs FHA MIP and see lifetime PMI costs.

Formula

PMI Rate by LTV: >95%: 1.5% | 90–95%: 1.0% | 85–90%: 0.7% | 80–85%: 0.5%

Monthly PMI = Loan Amount × PMI Rate ÷ 12

PMI Removal: When amortized balance reaches 78% of original home value

Example

Example: $400,000 home, 10% down ($40,000). Loan = $360,000. LTV = 90%. PMI rate = 1.0%. Monthly PMI = $360,000 × 1.0% ÷ 12 = $300/month. PMI drops off in approximately 109 months at 6.8% rate.

Frequently Asked Questions

  • Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20%. It protects the lender — not you — if you default. PMI typically costs 0.5–1.5% of the loan amount annually, paid monthly.
  • By law (Homeowners Protection Act), your lender must cancel PMI when your mortgage balance reaches 78% of the original home value (22% equity), based on the original amortization schedule.
  • Yes — you can request cancellation once you reach 80% LTV (20% equity). You may need a new appraisal to prove the home value. Significant appreciation can help you reach 80% LTV faster.
  • FHA Mortgage Insurance Premium (MIP) differs from PMI. FHA loans require both an upfront MIP (1.75% of loan) and annual MIP (0.55–0.85%). For loans with less than 10% down, MIP lasts the entire loan term.
  • PMI deductibility has varied by year. As of recent tax law, PMI deductions have not been permanently extended — check the current IRS guidance for your tax year.

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Sources & References (5) ▾
  1. CFPB — Private Mortgage Insurance (PMI) — Consumer Financial Protection Bureau
  2. Fannie Mae — PMI Requirements — Fannie Mae
  3. HUD — FHA Mortgage Insurance Premiums — U.S. Department of Housing and Urban Development
  4. IRS — PMI Deductibility Information — Internal Revenue Service
  5. Freddie Mac — Understanding Mortgage Insurance — Freddie Mac