PMI (Mortgage Insurance) Calculator
See how private mortgage insurance (PMI) affects your monthly outlay and for how long you’ll carry it. This page estimates your PMI cost and projects when you can request removal around 80% loan-to-value and when it typically drops off automatically near 78%—useful if you’re buying with less than 20% down, weighing whether to save longer, or planning extra principal payments to reach the cutoff sooner.
The PMI (mortgage insurance) calculator helps you compare scenarios—different down payments, prices, and payoff speeds—to pinpoint the month PMI ends, approximate total paid before cancellation, and evaluate strategies like one-time curtailments, faster amortization, or refinancing. The goal is clarity: understand the real carrying cost of a low-down-payment loan, budget confidently today, and map the shortest path to eliminating PMI.
Estimate PMI cost and when it can be removed by tracking your loan-to-value (LTV) with amortization and home price appreciation.
Estimate monthly PMI and when you can remove it by tracking your loan-to-value (LTV). We model both amortization and home price appreciation.
LTV trend (assuming appreciation)
Your loan balance declines with amortization while home value can rise with appreciation. LTV falls as the denominator grows and the numerator shrinks.
Results interpretation
How it works
We calculate a 30-year fixed monthly principal & interest payment, project your balance over time, and grow your home value with monthly-compounded appreciation.
Formulas, assumptions, limitations
Loan amount. Price × (1 − down%).
Payment. M = L·r / (1 − (1+r)^−n), with r = APR/12 and n = 360 months.
Balance path. Closed-form balance after m months using standard amortization math.
Home value. Price × (1 + appreciation)^(m/12) with monthly compounding.
LTV thresholds. Eligible removal at 80% LTV; typical automatic removal at 78% (conventional loans).
PMI monthly. PMI% per year × original loan ÷ 12 (simplified pricing convention; lenders vary).
Scope. We exclude taxes, insurance, PMI refunds, escrow nuances, FHA/VA/USDA rules, and servicer-specific policies.
Use cases & examples
Expect PMI initially; removal may occur in ~3–6 years depending on rate and appreciation.
Starting LTV ≤ 80%, so PMI isn’t required; banners show $0.00 and 'Not required'.
Without appreciation, LTV falls more slowly and removal relies mostly on amortization.
PMI FAQs
When can we remove PMI?
Typically when LTV reaches 80% you can request removal; many servicers auto-remove at 78% on conventional loans.
Does appreciation help?
Yes. Rising value lowers LTV; some servicers may require a new appraisal to document it.
Is PMI tax-deductible?
It has been deductible in some years subject to IRS rules and income limits. Check current guidance or ask a tax pro.
What about FHA loans?
FHA uses mortgage insurance premiums (MIP) with different rules; many FHA loans keep MIP for the life of the loan.
Do lenders compute PMI the same way?
No. Premium tables vary by credit score, LTV, loan type, and other factors.
Will extra principal help?
Yes. Paying extra lowers your balance faster, accelerating PMI removal by reducing LTV sooner.
Understanding PMI: cost, timelines, and smart removal strategies
Private mortgage insurance (PMI) protects the lender when a loan begins with a small down payment. While it increases your monthly cost, PMI can enable homeownership sooner. The key is understanding how long PMI will last and what levers shorten that timeline.
What determines your PMI timeline?
Two forces push your loan-to-value (LTV) down over time: principal amortization (you owe less) and appreciation (the home is worth more). When LTV reaches 80%, many servicers allow you to request PMI removal; at 78%, removal is often automatic on conventional loans.
Why starting LTV matters
A 5% down payment starts near 95% LTV, while 15% down starts near 85% LTV. The closer you begin to 80%, the sooner PMI can end—sometimes within a couple of years if appreciation cooperates. Our calculator shows both the earliest request date and an automatic threshold note.
How appreciation changes the math
Even modest appreciation compounds. At 3% per year, a $400,000 home reaches roughly $463,000 in five years, shrinking LTV faster than amortization alone. Some servicers may require a new appraisal to recognize appreciation; factor the appraisal cost into the decision.
Practical tactics to accelerate PMI removal
- Round up your payment. Even small extra principal reduces balance and LTV faster.
- Apply windfalls. Tax refunds and bonuses applied to principal can shave months off PMI.
- Monitor home value. Track local comps; if LTV may be ≤ 80% with a new appraisal, request removal.
- Avoid risky renovations. Over-improving relative to the neighborhood may not yield the value bump you expect.
- Compare PMI quotes. Rates vary by credit score and LTV; shop lenders and ask for rate cards.
Caveats and special programs
FHA, VA, and USDA programs have different insurance structures (MIP or guarantee fees) and cancellation rules. Jumbo and investment properties may follow different policies. Always verify your loan’s specific guidelines before counting on a timeline.
Decision framework
- Confirm your loan type (conventional vs FHA/VA/USDA).
- Check current servicer policy for PMI removal and appraisal requirements.
- Estimate your amortization-only path and an appreciation-assisted path.
- Plan cash strategies (round-ups or lump-sum principal) to hit 80% earlier.
- Track market value and request removal as soon as you qualify.
Bottom line
PMI is a tool, not a forever fee. With a clear view of your LTV path and a few smart moves, you can shorten the PMI timeline and lower total cost of ownership.