PMI Calculator
Calculate the monthly private mortgage insurance premium, the total you will pay, and the month your loan reaches the equity thresholds where PMI can be cancelled.
PMI Calculator
Results recalculate instantly on every keystroke. Nothing you type is transmitted.
What this result does not account for
- Results are a model, not a quotation — an institution's own figures govern.
- Every input is an assumption; change one and the answer changes with it.
- Rounding is applied only at the display layer, so totals may differ by a cent from a statement that rounds each line.
In short: Private mortgage insurance is required on conventional loans when the deposit is under 20%. It typically costs 0.3% to 1.5% of the loan annually. On a $378,000 loan at 0.55%, that is $173.25 a month, and it can be cancelled at 80% loan-to-value — reached in 7 years 11 months here.
Formula
Cancellation thresholds are measured against the original purchase price, not a current appraisal, unless the servicer agrees to a new valuation.
Worked Example
- Find the loan. $420,000 less 10% leaves $378,000, an LTV of 90.0%.
- Apply the PMI rate. $378,000 × 0.55% = $2,079.00 per year.
- Divide by twelve. $173.25 added to every monthly payment.
- Amortise to 80% LTV. The balance reaches $336,000 after 94 payments — 7 years 11 months.
- Total the cost. $16,285.50 of premiums paid before cancellation can be requested.
Analyst note. Waiting for automatic termination at 78% rather than requesting cancellation at 80% costs an extra $2,425.50 here. The request is not automatic — you must ask, in writing, and the loan must be current.
Strengths & Limits Of This Model
Where this engine is strong
- Runs entirely in your browser — no figure you type is transmitted or stored.
- Shows the full working, so every number can be traced and challenged.
- Free, unmetered and free of affiliate incentives.
Where it stops
- Generalised assumptions cannot capture every individual circumstance.
- Jurisdiction-specific rules and mid-year changes may not be reflected.
- A model output is not a substitute for a professional review of your position.
Practical Use Cases
Deciding whether to wait and save a larger deposit
The extra-deposit output shows precisely what is needed to reach 20%. Weigh that against the total premium cost and continued rent; the Mortgage Payment Calculator shows the payment difference both ways.
Planning the cancellation request
Servicers must terminate PMI automatically at 78% LTV but will only cancel at 80% if you ask. Knowing the month you cross that line is worth thousands. Accelerate it with the Extra Payment Mortgage Calculator.
Comparing conventional PMI against an FHA loan
FHA mortgage insurance usually lasts the life of the loan, whereas conventional PMI terminates. Price both with the FHA Loan Calculator before assuming the lower deposit is cheaper overall.
Methodology & Editorial Standards
The premium is the annual PMI rate applied to the original loan amount and divided by twelve, which is how most conventional lenders bill it; some instead recalculate annually on the declining balance, which produces a slightly lower total. Cancellation timing is derived by amortising the loan month by month until the balance falls below 80% and 78% of the original purchase price, the thresholds set by the Homeowners Protection Act. Borrower-requested cancellation at 80% requires a written request, a current payment history and sometimes an appraisal; termination at 78% is automatic. Appreciation is deliberately not modelled, because statutory thresholds are measured against original value rather than current market value. The engine implements the standard published formula for this calculation. Inputs are validated for domain and sign before evaluation, and any undefined case returns an em-dash rather than a spurious value.
Computation runs in IEEE-754 double precision at full internal precision; rounding to two decimal places occurs strictly at the display layer, so no cumulative drift enters the result. All monetary outputs use accounting presentation — grouped thousands, two decimals, negatives in parentheses — so figures can be transcribed directly into a model or working paper. Division-by-zero and out-of-domain inputs return an em-dash rather than a misleading number.
This engine was reconciled against an independent reference implementation and hand-verified for the worked example above before release. Our full five-stage review process is published on the About Us page.
Disclaimer. This calculator is provided for informational and modelling purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Verify all figures with a qualified professional before acting on them.
PMI Calculator — 20 Expert FAQs
20 analyst-written answers to the questions practitioners actually ask — optimised for voice and answer-engine retrieval.
How much does PMI cost per month?
Typically 0.3% to 1.5% of the loan annually, divided by twelve. On a $378,000 loan at 0.55% that is $173.25 monthly. The rate depends chiefly on your credit score and loan-to-value ratio.
When can I stop paying PMI?
You may request cancellation once the balance reaches 80% of the original purchase price — 7 years 11 months into this example — and the servicer must terminate it automatically at 78%, which takes 9 years 1 month here.
Is PMI cancellation automatic?
Only at 78% loan-to-value. At 80% you must request it in writing, and the loan must be current with a good payment history. Waiting for the automatic point instead of asking costs $2,425.50 in this example.
Does PMI protect me as the borrower?
No. It protects the lender against loss if you default. You pay the premium but receive none of the benefit, which is precisely why eliminating it as early as possible is worthwhile.
Can home appreciation remove PMI faster?
Sometimes. Statutory thresholds are measured against the original purchase price, but many servicers will cancel early on the basis of a new appraisal showing 20% equity. You pay for the appraisal, and policies vary.
How can I avoid PMI entirely?
Put down 20%, which here means an extra $42,000. Alternatives include lender-paid PMI in exchange for a higher rate, or a piggyback second mortgage — both simply relocate the cost rather than removing it.
Is FHA mortgage insurance the same as PMI?
No. FHA charges an up-front premium plus an annual premium that, on most modern FHA loans, lasts the entire life of the loan rather than terminating at 78%. Refinancing to a conventional loan is usually the only way out.
Does a bigger deposit always beat paying PMI?
Not necessarily. If waiting two years to save the difference costs you appreciation and continued rent, the premium can be the cheaper route. Compare total cost over your expected holding period rather than following the convention.
What PMI rate should I enter?
Around 0.5% to 0.6% is typical for good credit at 90% LTV. Rates rise sharply below a 700 credit score and above 95% LTV, where 1.0% or more is common. Your lender provides the exact figure in the loan estimate.
Do extra payments remove PMI sooner?
Yes, and it is one of the highest-return uses of an overpayment. Every dollar of extra principal brings the 80% threshold closer, and the saving is the entire remaining premium stream, not just the interest.
Is PMI tax deductible?
It has been deductible in some tax years and not others, subject to income limits, as the provision has repeatedly lapsed and been reinstated. Check the current year's rules rather than assuming.
Does PMI apply to VA or USDA loans?
No. VA loans carry no mortgage insurance at all, funded instead by a one-time funding fee. USDA loans charge a guarantee fee that works similarly to PMI but under a different name and rate structure.
Is this pmi calculator free to use?
Yes. It is free, requires no account, and has no usage limits. ApexConverter is funded by contextual advertising, never by selling user data.
Is my data sent to a server?
No. The engine runs as Vanilla JavaScript inside your browser under our Zero-Server Client-Side Execution model. Your figures are computed locally and are never transmitted, logged, or stored.
How accurate is this calculator?
It applies the standard closed-form formula in IEEE-754 double precision, rounding only at the display layer. The engine is reconciled against an independent reference implementation before release.
Does it work on mobile?
Yes. The interface is mobile-first with numeric keypad hints and is tested down to a 320-pixel viewport with no horizontal scrolling.
Can I use it offline?
Largely, yes. Because computation is client-side, the page continues to calculate without a network connection once it has loaded.
Which currency does it use?
Amounts display in US$ accounting format, but the underlying mathematics is currency-agnostic. The result is identical in any currency, so simply read the figures in your own.
Why does a result show an em-dash?
An em-dash indicates the calculation is not defined for the inputs given — typically a division by zero or a value outside the valid domain. We show a dash rather than a misleading number.
How do I report an error?
Email apexconverter.praxiscalc@gmail.com with the tool URL, your exact inputs, the output received and the output you expected. Verified mathematical errors are patched within 72 hours.