What is PMI?
Answer
Insurance for the lender when you put down less than 20%.
Private Mortgage Insurance protects the lender if you default. You pay it monthly until your loan-to-value (LTV) drops to 78–80%. Then it cancels automatically.
Interactive tool · Free · Updated for 2026
PMI Calculator
See monthly PMI from your credit score and both removal dates: request at 80% LTV, automatic at 78%.
Calculate private mortgage insurance on a conventional loan: a PMI rate suggested from your credit-score band, the date you can request removal at 80% LTV, the date it auto-terminates at 78%, total PMI paid until then, and your deductible share under the 2026 rules.
- Free calculator
- Score-based rate
- 78/80 removal dates
- Privacy-first
Live calculation
runs locallysee two plans side by side
Loan basics
Home price
Down payment= $40.0K
%
Credit score
Monthly PMI
$174
0.58% annual on a $360.0K loan · added to your payment
P&I + PMI
total monthly payment
$2,509
Request removal
80% LTV · 8 yr 3 mo in
Nov 2034
Auto-cancels
78% LTV · 9 yr 6 mo in
Feb 2036
Total PMI paid
until auto-cancel
$19.8K
LTV today
over 80%, PMI applies
90.0%
Suggested plans
What more down does to your PMI bill.
Current plan
Monthly PMI
$174
Total PMI paid$19.8K
LTV today90.0%
15% down
Monthly PMI
$164
Total PMI paid$12.8K
LTV today85.0%
20% down, no PMI
Monthly PMI
No PMI
Total PMI paid$0
LTV today80.0%
What moves this result
Ways to pay less PMI, ranked.
At 10% down you pay $174 a month of PMI, about $19.8K until it auto-cancels around Feb 2036. You can request removal at 80% LTV as early as Nov 2034. Every move below shrinks that bill.
Lift your credit score into the 760+ bandBiggest impact
PMI reprices from 0.58% to 0.46% annually
+$4.1K PMI avoided
Pay $100 a month extra principal
reach the 80% request point 1 yr 9 mo sooner
+$3.7K PMI avoided
Put 12.5% down instead of 10%
needs $10.0K more cash, smaller loan and earlier cancel
+$3.6K PMI avoided
LTV over time
When PMI drops off
By down-payment tier
PMI cost at each down-payment level.
Down
Loan
Monthly PMI
Lifetime PMI
3%
$388.0K
$188
$27.6K
5%
$380.0K
$184
$25.9K
10%
$360.0K
$174
$19.8K
15%
$340.0K
$164
$12.8K
20%
$320.0K
-
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Quick Answers
PMI Calculator, in 30 seconds.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
How much does PMI cost?
Answer
Typically 0.3% to 1.5% of the loan amount per year.
PMI rate depends on credit score and down payment. Excellent credit + 15% down: ~0.3%. Average credit + 5% down: 1.0–1.5%. On a $300k loan, that's $75–375 per month.
When can I get PMI removed?
Answer
Request at 80% LTV, automatic at 78%, midpoint at the latest.
The Homeowners Protection Act gives you three triggers: you can request cancellation once your balance is scheduled to reach 80% of the original value (clean payment history required), the servicer must auto-terminate at 78%, and PMI must end at the loan's midpoint regardless of LTV. The calculator shows both of your dates. Appreciation can move the request date up: a new appraisal showing 80% LTV or better often gets PMI cancelled years early.
Is PMI tax deductible?
Answer
Yes, again, starting tax year 2026 (with an AGI phase-out).
The One Big Beautiful Bill Act permanently restored the mortgage-insurance deduction beginning with tax year 2026. It phases out 10% for every $1,000 of AGI above $100,000 and disappears at $110,000 ($50,000 and $55,000 if married filing separately). Enter your AGI in the calculator's fine-tune section to see your deductible share.
How do I avoid PMI?
Answer
Put 20% down, take a piggyback loan, or use lender-paid PMI.
Three main routes: (1) 20% down (clean and simple); (2) piggyback 80/10/10 (first mortgage + HELOC + 10% down); (3) lender-paid PMI (slightly higher rate forever, no monthly PMI line).
How it works
How pmi calculator works.
The mechanics in short answers. No jargon, no upsell.
01
PMI is for the lender, not you.
If you put less than 20% down, the lender requires insurance against default. You pay the premium; the lender collects the payout.
02
Rate scales with credit and down payment.
Lower credit + smaller down payment = higher PMI rate. The calculator suggests a rate from your credit-score band; 760+ pays roughly a third of what 620-639 pays. Override it with a lender quote any time.
03
Request at 80%, automatic at 78% LTV.
The federal Homeowners Protection Act lets you request cancellation at 80% LTV of the original price and forces automatic termination at 78%. The calculator computes both dates from your amortization schedule.
04
Or earlier with appreciation.
If your home appreciates and current LTV drops below 80%, you can request cancellation early. Lender requires a new appraisal (~$500), but it pays for itself fast.
The math behind it
Full transparencyMonthly PMI = loan × PMI rate ÷ 12 (charged when down payment < 20%)
Request removal at the first month the balance ≤ 80% of the original price
Auto-termination at the first month the balance ≤ 78% of the original price
Total PMI paid = monthly PMI × months until the 78% point
- loan
- home price minus your down payment
- PMI rate
- annual rate, typically 0.3–1.5%; the calculator suggests one from your credit-score band
- LTV
- loan balance as a % of the original home price
Worked example: A $400,000 home with 10% down means a $360,000 loan; a 740-759 credit score suggests a 0.58%/yr PMI rate, about $174/mo. At 6.75% over 30 years you can request removal at 80% LTV ($320,000 balance) around month 98, and it auto-terminates at 78% ($312,000) around month 112, roughly $19,500 of total PMI if you never act sooner.
Automatic termination at 78% LTV follows the federal Homeowners Protection Act and is based on the original amortization schedule, but you can usually request cancellation at 80% LTV, or sooner if appreciation has boosted your equity. Everything runs locally in your browser.
How to use
Four steps. About 20 seconds.
Designed so anyone can model their situation in under a minute, with or without a finance background.
- Step 1Enter home price and down paymentPMI applies when down is under 20%.
- Step 2Pick your credit score bandThe tool suggests a PMI rate for your band. Override with a lender quote in fine-tune.
- Step 3See cost and both removal datesMonthly PMI, total paid, plus your 80% request date and 78% auto-cancel date.
- Step 4Compare scenariosVary down payment to see PMI removal speed.
Benefits
Why this matters.
See monthly PMI cost
Exact dollars added to your payment, with a rate suggested from your credit-score band.
Get both removal dates
Your 80% LTV request date and the 78% automatic termination date, from your real amortization.
Compare 5%, 10%, 15% down
PMI rate changes by tier; see the trade-off.
Lifetime PMI total
Total dollars paid before cancellation, usually $5–15k.
Bigger down vs PMI
See if a larger down payment beats keeping the cash invested.
Removal strategies
Auto cancellation, manual request, and refinance-out paths.
FAQ
PMI Calculator, answered.
Everything you might ask before, during, or after using this tool.
Written for borrowers, not bankersPlain-language, jargon-freeReviewed quarterly
Is PMI tax-deductible?
Yes. After lapsing from 2022 through 2025, the deduction was permanently restored by the One Big Beautiful Bill Act starting with tax year 2026. It phases out 10% for every $1,000 of AGI above $100,000, disappearing at $110,000 (thresholds are halved if married filing separately), and you must itemize to claim it. Enter your AGI in the calculator to see your deductible share.
Is PMI bad?
Not necessarily; it lets you buy a home with less than 20% down, which can be the right call if home prices are appreciating faster than you can save. PMI ends; missed appreciation doesn't come back.
What's the difference between PMI and MIP?
PMI is on conventional loans and cancels at 78% LTV. MIP is FHA's version and (for loans originated after 2013 with less than 10% down) lasts the entire life of the loan. To kill MIP, you usually have to refinance to conventional.
Should I put 20% down or invest the difference?
Math: if you expect equity returns higher than your PMI rate, investing wins. PMI at 0.5% is easy to beat. PMI at 1.5% is tougher. Most buyers benefit from putting at least 10% down to bring PMI to a moderate level.
What is lender-paid PMI (LPMI)?
The lender pays PMI in exchange for charging you a higher interest rate (typically 0.25–0.5% higher). LPMI never cancels; you pay it via rate for the life of the loan. Only makes sense if you plan to refinance or sell within 5 years.
Does refinancing remove PMI?
Yes, if your new loan-to-value is below 80%. If your home has appreciated or you've paid down enough principal, refinancing into a new conventional loan kills PMI immediately, often the cheapest escape from MIP on an FHA loan.
How fast can PMI cancel with appreciation?
Depends on your local market and lender. Most lenders allow PMI cancellation at 80% LTV with a current appraisal showing the equity. In hot markets, this can happen within 2–3 years even with a 10% down payment.
Can I prepay to eliminate PMI faster?
Yes, every extra principal payment accelerates the LTV drop. With PMI running $200/month, paying an extra $500/month of principal in the early years can pull the cancellation date in by a year or more, saving thousands. The insight card on this page shows what an extra $100/month does to your own dates.
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When PMI applies (and when it doesn't)
Conventional loan, less than 20% down: PMI applies until 78% LTV.
FHA loan: not PMI, but MIP (different rules, often permanent).
VA loan: no PMI ever (the VA funding fee is one-time, not recurring).
USDA loan: not PMI, but a 0.35% annual fee that runs the life of the loan.
PMI cost vs putting more down
Putting 20% down means tying up cash you could invest elsewhere. PMI lets you keep more capital deployed.
At a 0.5% PMI rate, paying PMI for 7 years costs less than the lost return on the down-payment difference if you average 6%+ on the money. At a 1.5% PMI rate, the math flips: bigger down payment wins.
Three paths to cancel PMI
Request: 80% LTV with clean payment history. Lender may require an appraisal. In appreciating markets this can arrive years before the scheduled date; a current appraisal showing 80% LTV or better is usually enough.
Auto: 78% LTV (original price basis). Lender removes it without you asking. Backstop: PMI must also end at the loan's midpoint (year 15 of a 30-year term) even if LTV is still above 78%.
Refinance: into a new conventional loan if current LTV is under 80%.
PMI is tax-deductible again from 2026
The One Big Beautiful Bill Act permanently restored the mortgage-insurance premium deduction starting with tax year 2026, after it lapsed at the end of 2021.
The write-off shrinks by 10% for every $1,000 of AGI above $100,000 and is gone at $110,000 ($50,000 and $55,000 if married filing separately). You must itemize to claim it.
Practical effect: a household under the phase-out paying $2,160/year of PMI in the 22% bracket gets roughly $475 back, cutting the effective PMI cost by about a fifth. Enter your AGI in the calculator to see your deductible share.
PMI vs MIP: the FHA trap
On FHA loans originated after June 2013 with less than 10% down, MIP lasts the life of the loan. It does not auto-cancel.
To escape, you refinance to conventional once you hit ~20% equity. Many buyers who go FHA at 3.5% down end up refinancing in years 4–7 to kill MIP.
Common PMI mistakes
- Forgetting to request cancellation at 80% LTV, waiting for the auto trigger at 78%.
- Not getting a new appraisal in appreciating markets.
- Choosing lender-paid PMI for a home you'll own 15+ years.
- Confusing FHA MIP rules with PMI cancellation rules.
- Underestimating how much faster prepayment cancels PMI.
Trust & transparency
How this tool behaves, and what it isn't.
Two short notes worth reading before you trust any number on this page.
Privacy
Calculations run locally in your browser.
Your loan amount, rate, and prepayment inputs never leave your device. No accounts, no cookies on your numbers, no analytics on the values you type. Disconnect from the internet and it still works.
- No account required
- No data stored or sent
- Works offline
- No third-party trackers
Disclaimer
Lazysmirk is a tools platform, not a financial institution.
We are not a bank, NBFC, advisor, broker, or distributor of any financial product. The numbers shown here are estimates for educational purposes only, based on the inputs you provide.
Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.