PMI Calculator
Your monthly PMI, when you can request cancellation at 80% LTV and when it ends automatically at 78% (sooner with appreciation or extra payments), total PMI paid, the cash needed to skip it and the effective cost of not putting 20% down.
| Loan and LTV | — |
|---|---|
| Monthly PMI | — |
| Principal and interest | — |
| Request cancellation at 80% LTV (original value) | — |
| Automatic cancellation at 78% LTV | — |
| With appreciation (new appraisal) | — |
| Total PMI paid until cancellation | — |
| Cash to skip PMI entirely (20% down) | — |
| Effective cost of borrowing the extra down payment | — |
In short
Private mortgage insurance costs roughly 0.2%–2.25% of the loan per year on conventional loans with less than 20% down, depending on credit score and LTV. Under the Homeowners Protection Act you can request cancellation once the balance reaches 80% of the original value, it must end automatically at 78%, and most servicers allow cancellation at 80% of a new appraisal after two years. Extra principal payments and appreciation shorten the PMI period.
Who this is for: US buyers with under 20% down working out PMI cost and how soon it ends.
How PMI works and when it ends
- Cost: roughly 0.2%–2.25% of the loan per year, set by credit score, LTV, loan type and whether it is monthly, single-premium or lender-paid. On a $360,000 loan at 0.6% that is $180 a month.
- Cancellation (Homeowners Protection Act): you may request cancellation when the balance hits 80% of the original value (good payment history, no second lien); the lender must cancel automatically at 78%, and at the loan's midpoint regardless of balance.
- Appreciation shortcut: after two years, most servicers allow cancellation at 75–80% of a new appraised value — in a rising market this can cut years off.
- Extra principal accelerates the 80% date faster than almost anything else, because early payments are mostly interest.
- Is PMI worth it? Compare total PMI paid with the return you would forgo by tying up the extra down payment. Buying earlier with PMI often wins in appreciating markets; waiting to save 20% wins when PMI is expensive or prices are flat.
See also: FHA Loan Calculator 2026.
Assumptions
- PMI = loan × annual rate ÷ 12, charged until the month the scheduled balance (with any extra payments) reaches 80% (request) or 78% (automatic) of the original price.
- Appreciation path: 80% of price × (1 + rate)^years.
- Effective cost = PMI paid ÷ extra down payment avoided ÷ years to cancellation.
Worked example
Loan $360,000 at 90% LTV; PMI $180 a month on top of $2,275 P&I. The balance reaches 80% of the original value ($320,000) after about 7 years 11 months, so you could request cancellation having paid roughly $17,100 of PMI; automatic cancellation at 78% comes at 9 years 1 month ($19,620). With 3% appreciation a new appraisal would show 80% LTV after about 2 years 10 months, cutting PMI paid to about $6,120. Skipping PMI would have needed $40,000 more down.
Frequently asked questions
How much is PMI?
Typically 0.2%–2.25% of the loan amount per year, depending mainly on credit score and down payment — about $50–$190 a month per $100,000 borrowed.
When can I cancel PMI?
Request it once the balance is 80% of the original value (or ~80% of a new appraisal after two years); it must be cancelled automatically at 78% or at the loan midpoint.
Is PMI tax-deductible?
The mortgage insurance deduction expired after 2021 and has not been renewed for 2026 at the time of checking.
Is FHA MIP the same as PMI?
No — FHA MIP has an upfront 1.75% premium and usually lasts the life of the loan; PMI on a conventional loan cancels at 78–80% LTV.
What is lender-paid PMI?
The lender covers the premium in exchange for a higher interest rate for the life of the loan — cheaper early, more expensive if you keep the loan long after 80% LTV.
Does a piggyback loan avoid PMI?
Yes — an 80% first mortgage plus a 10–15% second mortgage keeps the first at 80% LTV, though the second carries a higher rate.
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