PMI Calculator United States

US buyers who put down less than 20% on a conventional loan usually pay private mortgage insurance. Enter your home price, down payment and quoted PMI rate, and this PMI calculator shows your loan-to-value ratio, whether PMI is required, and the monthly and annual premium. It also shows how close you are to the 20% mark and what reaching it would save.

How PMI works on a conventional loan

When your down payment on a conventional mortgage is below 20%, the lender treats the loan as higher risk and requires private mortgage insurance until you build enough equity. The policy insures the lender against default and does nothing for you directly; it is the cost of buying with a smaller down payment instead of waiting years to save the full 20%. The premium is added to your monthly mortgage payment and comes off once your equity is high enough.

The 80% LTV threshold

The loan-to-value ratio is the loan amount as a percentage of the home price. Put down 10% on a $300,000 home and you borrow 270,000, an LTV of 90%, above the 80% line, so PMI applies. Put down the full 60,000 (20%) and the loan is 240,000, an LTV of exactly 80%, and PMI is not required.

How the premium is calculated

PMI is quoted as an annual percentage of the loan amount, not the home price. Multiply the loan by the rate to get the yearly premium, then divide by twelve for the monthly figure. There is no national PMI rate. Lenders set their own, usually between 0.3% and 1.5% a year, based on your credit score, down payment size and loan type, so the calculator takes the rate as an input. Plug in each quote you have been given to compare offers.

A worked example

Take a $300,000 home with 30,000 down. The loan is 270,000, giving an LTV of 90%, so PMI applies. At a quoted rate of 0.5%, the annual premium is 270,000 × 0.5% = $1,350, or $112.50 a month on top of your principal, interest, taxes and insurance. Increase the down payment to 60,000 and the LTV drops to 80%, PMI no longer applies, and you keep that 112.50 a month.

Should you wait until you have 20%?

Delaying a purchase to avoid PMI has costs of its own. While you save the extra deposit, home prices may rise and you keep paying rent with no equity to show for it. Buying earlier with PMI lets you start building equity sooner, and conventional PMI, unlike FHA insurance, drops off automatically once you reach the equity threshold. The answer depends on how fast prices are moving in your market, how close you already are to 20%, and how much the premium strains your budget. Compare the premium with your expected home-price growth.

Other ways to handle PMI

Single-premium PMI pays the whole cost upfront in one lump sum, which can be cheaper if you keep the loan for years but is lost if you sell or refinance soon. Lender-paid PMI folds the cost into a slightly higher interest rate, removing the separate line item but raising the rate for the life of the loan. A piggyback structure, a first mortgage at 80% plus a second loan covering part of the down payment, avoids PMI entirely but adds a second payment, often at a higher rate. Standard borrower-paid monthly PMI, the version this calculator models, is the most common because it is simple and ends on its own as equity grows.

Getting rid of PMI

As you pay down the balance your LTV falls, and once it reaches 80% of the original value you can ask the lender to cancel PMI. Federal rules require automatic termination at 78% LTV based on the original amortization schedule. Extra principal payments, or a rise in your home value confirmed by an appraisal, can get you there faster.

Automatic termination at 78% is measured against the price you paid, so it arrives on the lender's schedule regardless of what the home is now worth. If your market has risen, you can often reach the 80% mark much sooner by paying for a new appraisal and requesting cancellation on the higher value. Ask as soon as you cross the threshold instead of waiting for automatic removal.

Assumptions and limitations

This calculator is an estimate for planning a conventional-loan purchase. The only rule it applies is the standard 80% LTV threshold for PMI. It assumes borrower-paid monthly PMI and does not model lender-paid PMI, single-premium PMI, or FHA mortgage insurance, which follows different rules. The result depends on the PMI rate you enter, so use an actual lender quote, and confirm cancellation terms with your servicer.

About This PMI Calculator

Use this PMI calculator to get an instant, accurate estimate. The figures follow official guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.