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, when it cancels, and lifetime PMI cost at any down payment.
Calculate private mortgage insurance on a conventional loan: exact monthly cost, the month it auto-cancels at 78% LTV, and the total dollars paid before that happens.
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- Privacy-first
Live calculation
runs locallysee two plans side by side
Loan basics
Home price
Down payment= $40.0K
%
Interest rate
%
Loan term
yr
PMI
PMI rate0.3–1.5% typical
%
Monthly PMI
$180
0.6% annual on a $360.0K loan · added to your payment
P&I + PMI
$2,515
monthly cost
PMI cancels
9y 6m
78% LTV trigger
Total PMI paid
$20.5K
until cancel
LTV today
90.0%
over 80%, PMI applies
Suggested plans
What more down does to your PMI bill.
Current plan
Monthly PMI
$180
Total PMI paid$20.5K
LTV today90.0%
15% down
Monthly PMI
$170
Total PMI paid$13.3K
LTV today85.0%
20% down, no PMI
Monthly PMI
No PMI
Total PMI paid$0
LTV today80.0%
What moves this result
Three ways to pay less PMI, ranked.
At 10% down you pay $180 a month of PMI, about $20.5K before it auto-cancels at 78% LTV around year 10. Every move below shrinks that bill.
Shop for a 0.40% PMI rate instead of 0.6%Biggest impact
PMI pricing varies by insurer and credit score
+$6.8K PMI avoided
Pay $100 a month extra principal
reaches the 78% LTV cancel point sooner
+$3.8K PMI avoided
Put 12.5% down instead of 10%
needs $10.0K more cash, smaller loan and earlier cancel
+$3.7K 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
$194
$17.7K
5%
$380.0K
$190
$17.3K
10%
$360.0K
$180
$20.5K
15%
$340.0K
$170
$15.5K
20%
$320.0K
-
-
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 does PMI cancel?
Answer
Automatically at 78% LTV, by request at 80% LTV.
Federal law requires automatic cancellation at 78% LTV based on original purchase price (or current appraisal, lender option). You can request cancellation at 80% LTV with a clean payment history.
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. 740+ credit with 10% down is often around 0.4–0.6% annually.
03
Cancels automatically at 78% LTV.
Federal Homeowners Protection Act requires automatic cancellation when LTV reaches 78% based on original price. No request needed.
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%)
PMI cancels at the first month the balance ≤ 78% of the original price
Total PMI paid = monthly PMI × months until cancellation
- loan
- home price minus your down payment
- PMI rate
- annual rate, typically 0.3–1.5% depending on credit score and LTV
- LTV
- loan balance as a % of the original home price
Worked example: A $400,000 home with 10% down means a $360,000 loan; at a 0.6%/yr PMI rate that is $180/mo. At 6.75% over 30 years, the balance reaches 78% LTV ($312,000) around month 112 (about 9.3 years) for roughly $20,160 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 2Set credit-tier PMI rateConservative: 0.5–1.5%. Use lender quote if you have one.
- Step 3See monthly cost and cancellationPMI dollar amount, total paid, month it cancels.
- Step 4Compare scenariosVary down payment to see PMI removal speed.
Benefits
Why this matters.
See monthly PMI cost
Exact dollars added to your payment, based on credit and down payment.
Project the drop-off
See the month PMI cancels, usually years sooner than expected.
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?
It was through 2021. Currently (2026), PMI is not federally tax-deductible. Some states still allow it on state returns. Don't count on the deduction when evaluating whether to take PMI.
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. The math: at a 5% PMI rate of $200/month, paying an extra $500/month principal in early years can drop PMI a year+ earlier, saving thousands.
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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
Auto: 78% LTV (original price basis). Lender removes it without you asking.
Request: 80% LTV with clean payment history. Lender may require an appraisal.
Refinance: into a new conventional loan if current LTV is under 80%.
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.