PMI Calculator
The PMI premium, its removal date and total cost for a mortgage. Live calculator with worked steps, charts.
Calculator
The purchase price of the property.
Advanced options (2)
Private mortgage insurance, roughly 0.3%–1.5% of the loan per year.
PMI is removable once amortisation reaches this loan-to-value ratio.
This taxes, insurance & closing calculator runs on the standard amortisation model: interest is charged on the outstanding balance each month, and anything extra you enter is applied to principal immediately.
Results
Monthly PMI Premium
$133.33/month
0.50% of the loan per year.
$1,600
80.00%
Already below threshold
No PMI needed.
$48,000
A pure cost — builds no equity.
$80,000
20% down on conventional loans.
$0
—
Lenders must auto-cancel at 78% LTV (HPA).
Live results update as you type — currently showing monthly pmi premium of $133.33 /month on 12 payments a year. Replace the defaults with your own quote for an exact comparison.
Visualizations
PMI Cost Stack
LTV Over Time
Formula
The cost and lifecycle of private mortgage insurance: the monthly premium below the down-payment threshold, the amortisation month it disappears, and the total paid until then.
Variables
| Symbol | Name | Unit | Description |
|---|---|---|---|
| B | Loan balance | currency | Amortises toward the removal threshold |
| r | PMI rate | percent | 0.3%–1.5% of loan per year, by credit and LTV |
| M | Monthly premium | currency | B × r ÷ 12 — pure cost, no equity |
| k | Removal month | count | When balance ≤ 78%–80% of original value |
Explanation
This is what the sub-20% down payment costs per month, when it ends, and the total premium over that window — the number to weigh against waiting to save 20%.
Step-by-Step Calculation
Follow each step to understand how the result is calculated from your inputs.
PMI is priced as an annual percentage of the loan.
Amortisation reaches the drop LTV at a predictable payment.
Total PMI is a sunk cost over that window.
Worked Examples
See how the calculator works with different scenarios.
Scenario
The pmi calculator run on the values above, showing the full calculation path rather than only the answer.
Inputs
Calculation
1. PMI is priced as an annual percentage of the loan. → $133.33 per month 2. Amortisation reaches the drop LTV at a predictable payment. → Starts below the threshold 3. Total PMI is a sunk cost over that window. → $48,000
Result
Monthly PMI Premium: $133.33 /month
Interpretation
PMI $133.33/month (80.0% LTV), dropping after payment — — $48,000 total.
Understanding Your Result
Your Result: Monthly PMI Premium: $133.33 /month
Typical range: Conventional PMI runs 0.3%–1.5% of the loan annually depending on credit and LTV; FHA MIP is 0.15%–0.75% annually plus 1.75% upfront.
What This Means
This is what the sub-20% down payment costs per month, when it ends, and the total premium over that window — the number to weigh against waiting to save 20%.
Why It Matters
PMI $133.33/month (80.0% LTV), dropping after payment — — $48,000 total.
Professional Interpretation
PMI $133.33/month (80.0% LTV), dropping after payment — — $48,000 total.
How this is calculated
The cost and lifecycle of private mortgage insurance: the monthly premium below the down-payment threshold, the amortisation month it disappears, and the total paid until then.
What drives the result
Carrying costs are budgeted monthly through escrow: the servicer collects one-twelfth of the annual tax and insurance premium with each payment. Taxes rise with assessments, insurance with rebuild costs and weather, and HOA dues with the association’s budget — none of them stop at payoff.
Recommendations
- •Request PMI cancellation in writing at 80% LTV — do not wait for the automatic date.
- •A smaller down payment plus PMI can beat a draining-savings 20% down in a high-appreciation market.
Educational Content
Introduction
The mortgage payment is only part of owning a home. Property taxes, insurance, HOA dues, PMI and maintenance continue for as long as you own it, and several of them compound faster than the loan amortises.
Concept Explanation
Carrying costs are budgeted monthly through escrow: the servicer collects one-twelfth of the annual tax and insurance premium with each payment. Taxes rise with assessments, insurance with rebuild costs and weather, and HOA dues with the association’s budget — none of them stop at payoff.
Applications
Benefits
- •Separates escrowed costs from principal and interest
- •Shows the removal date for PMI and the growth path for taxes
- •Quantifies maintenance — the most-omitted cost of ownership
- •Supports apples-to-apples comparison between properties
Limitations
- •Assessment growth and insurance pricing are local and cyclical
- •Special HOA assessments are unpredictable; the reserve study is the best guide
- •Tax appeals, exemptions and abatements can change the bill materially
- •Maintenance averages 1%–2% of value per year but arrives in lumps
Best Practices
- •Review the escrow analysis every year and contest errors quickly
- •Appeal assessments when comparable sales support a lower value
- •Re-quote insurance every 2–3 years
- •Read the HOA reserve study before buying into a community
Common Misconceptions
Practical Tips
- •Request cancellation at 80% LTV — do not wait for the automatic 78% date.
- •Compare total PMI cost against the interest cost of waiting to save 20%.
- •Watch appreciation: a rising value can support early removal with an appraisal.
Common Mistakes
Assumptions
This calculator makes the following assumptions to provide estimates:
Limitations
Be aware of these limitations when using this calculator:
Frequently Asked Questions
Answers to common questions about this calculator.
How do I get PMI removed early?
Is FHA MIP the same?
Who uses the pmi calculator?
How accurate is the pmi calculator?
How current are the rates and thresholds used here?
Does rounding change the results?
Should I use the payment or the total cost to compare offers?
Can I use this calculator for a business or commercial loan?
What information should I have ready before applying?
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Related Guides
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Glossary
Technical terms used in mortgage calculations explained in plain language.
- PMI (Private Mortgage Insurance)
- Insurance protecting the lender when the down payment is below 20% of price; paid by the borrower and removable once equity is sufficient.
- MIP (Mortgage Insurance Premium)
- The FHA equivalent of PMI: an upfront premium (UFMIP) financed into the loan plus an annual premium paid monthly.
- Loan-to-value ratio
- The loan amount divided by the value of the asset securing it.
- UFMIP (Upfront MIP)
- The FHA upfront premium of 1.75% of the base loan amount, usually financed rather than paid in cash.
Authoritative References
Trusted sources and standards referenced by this calculator.
Applicable Standards
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Page Information
2026-09-21
2.0.0
- Consumer Financial Protection Bureau — Loan options and disclosures
- Consumer Financial Protection Bureau — What is a debt-to-income ratio?
- Federal Reserve — Consumer credit (G.19) statistical release
- Federal Reserve — Consumer credit and leasing guides
- U.S. Small Business Administration — Loan programmes
- Federal Student Aid — Income-driven repayment plans
- Federal Student Aid — Public Service Loan Forgiveness
- Federal Trade Commission — Consumer credit guidance
Free to use for educational and professional purposes.