PMI Calculator
It estimates monthly private mortgage insurance and identifies the month the loan reaches 80% loan-to-value, when cancellation can be requested.
Monthly PMI
$196.33
Loan amount
$380,000
Starting LTV
95.0%
PMI rate
0.62%
Request at 80%
4y 1m
Automatic at 78%
4y 8m
Total if you request
$9,620
Requesting cancellation at 80% rather than waiting for the automatic drop-off saves about $1,374. Diarize the month and write to your servicer.
Estimate only. PMI rates are set by the insurer and vary by lender, loan type and credit profile. FHA mortgage insurance works differently and often cannot be cancelled at all.
What it calculates
It estimates monthly private mortgage insurance and identifies the month the loan reaches 80% loan-to-value, when cancellation can be requested.
Why it matters
PMI protects the lender, not you, and it can run to hundreds a month. Knowing exactly when you may cancel it stops you paying for months you did not owe.
Who it's for
Buyers putting down less than 20%, and existing owners checking whether their loan has already crossed the cancellation threshold.
Formula
- L
- Loan amount
- V
- Property value
- r
- Annual PMI rate as a percent of the loan
- LTV
- Loan-to-value, which falls as the balance amortizes
Worked example
$380,000 loan on a $400,000 home at 0.5%
- 1Annual PMI = 380,000 × 0.5% = $1,900
- 2Monthly PMI = 1,900 ÷ 12 = $158.33
- 3Amortize until the balance reaches 80% of value
About $158 a month until the request point
How the pmi calculator works
PMI is charged as an annual percentage of the loan balance, spread across twelve monthly payments. The rate depends on loan-to-value and credit score, ranging roughly from 0.2% to over 1%. Under the Homeowners Protection Act, you may request cancellation once the balance reaches 80% of the original value, and the servicer must cancel automatically at 78%. The gap between those two points is often a year or more of premiums, which is why requesting rather than waiting is worth doing. Rising property values can also reach the threshold sooner, though that usually requires a new appraisal.
PMI is an annual percentage of the loan, spread across twelve payments. The rate depends on loan-to-value and credit score, ranging from roughly 0.2% to over 1%.
You may request cancellation at 80% LTV, and the servicer must cancel automatically at 78%. The gap between those two points is often a year of premiums you did not have to pay.
Common mistakes
- Waiting for automatic cancellation at 78% instead of requesting it at 80%.
- Assuming PMI is tax deductible, which depends on rules that have lapsed and returned repeatedly.
- Confusing PMI with the mortgage insurance premium on an FHA loan, which often cannot be cancelled at all.
- Forgetting that appreciation can reach the threshold years before the amortization schedule does.
Tips and best practice
- Diarize the month your balance hits 80% and write to the servicer that month.
- A single extra principal payment each year pulls the cancellation point noticeably closer.
- If local prices have risen sharply, an appraisal may cancel PMI far sooner than the schedule.
Frequently asked questions
How much is PMI per month?
Typically 0.2% to 1.1% of the loan a year, divided by twelve. On a $380,000 loan at 0.5% that is about $158 a month.
When does PMI go away?
You may request cancellation at 80% loan-to-value of the original value, and the servicer must cancel automatically once the balance reaches 78%.
How can I get rid of PMI faster?
Pay extra toward principal, or request a new appraisal if the property has appreciated enough to push the loan-to-value below the threshold.
Does PMI protect me?
No. It protects the lender against default. You pay the premium, but the coverage exists entirely for the lender's benefit.
Is FHA mortgage insurance the same as PMI?
No. FHA charges its own mortgage insurance premium, which on most modern FHA loans lasts the life of the loan unless you refinance out of it.
Related calculators
Methodology & trust
- Formula source
- Homeowners Protection Act cancellation thresholds and published PMI rate cards
- Last updated
- 2026-07-28
- Privacy
- Every calculation runs in your browser. No inputs are sent to a server or stored.