PMI Calculator — monthly cost and when it ends

How it works

The premium is one multiplication: PMI per month = loan × annual PMI rate ÷ 12, with the rate an adjustable assumption (0.5% by default) because lenders price it by credit score and loan-to-value. The end dates come from the loan's scheduled balance — the same amortization arithmetic as the payment, M = P·r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1), run forward month by month. The month the scheduled balance reaches 80% of the home's original value is when you can request cancellation; at 78% the servicer must end PMI automatically, current payments assumed (CFPB). "Original value" is the lower of the contract price or the appraised value when you bought (CFPB). The total shown is the no-action cost: every premium from closing to the automatic month — asking at 80% saves the difference between the two dates.

Worked example

Take CFPB's loan: $100,000 at 4% over 30 years, bought with nothing down. CFPB's own example shows the schedule still owes $90,448 after five years — above 90% of the original value, so PMI is still running. This calculator walks the same schedule further: the balance first reaches 78% of the original value ($78,000) at month 124 — just past year ten — and at the default 0.5% assumption the premium is about $41.67 a month, roughly $5,167 in total if it runs to automatic termination. The month-124 crossing and the totals are this calculator's computation on the published schedule; only the $90,448 balance is a published value (CFPB).

Frequently asked questions

What is PMI and why am I paying it?

Private mortgage insurance protects the lender — not you — if you stop making payments, and it may be required on a conventional loan when your down payment is under 20 percent of the purchase price (CFPB). It is added to your monthly payment; this page estimates it as the loan times an annual rate you can adjust, since lenders price PMI by credit score and loan-to-value.

When can I get rid of PMI?

Two dates matter under the Homeowners Protection Act (CFPB): you have the right to ask your servicer to cancel PMI on the date the principal balance is scheduled to fall to 80 percent of the home's original value, and the servicer must terminate it automatically when the balance is scheduled to reach 78 percent, if you are current on payments. This calculator reports both months for your loan.

What does "original value" mean?

Generally the lower of the contract sales price and the appraised value at the time you purchased the home; if you have refinanced, it is the appraised value at the time of the refinance (CFPB). The 80% and 78% thresholds are measured against that fixed original value, not against today's market price — appreciation does not move the scheduled dates, though it can support an appraisal-based request.

How much does PMI cost in total?

The total shown is the no-action figure: your monthly premium multiplied by every month from closing until the automatic 78% termination. Requesting cancellation at the 80% date trims months off that total, and paying extra principal reaches both thresholds sooner — the balance schedule, not the calendar, is what the law tracks.

Why does the chart show a flat line?

The falling curve is your scheduled loan balance; the flat line is 78% of the home's original value, which never moves. The year they cross is when automatic termination is scheduled. A bigger down payment starts the balance closer to the line; a higher interest rate flattens the curve's early years and pushes the crossing out.

Can I avoid PMI entirely?

A down payment of 20 percent or more on a conventional loan generally avoids it — set the slider to 20% and the premium goes to zero. Some loan types price the protection differently (FHA loans carry their own mortgage insurance with different rules), which is outside this page's conventional-loan model.

How accurate is this, and what does it exclude?

The balance schedule and threshold months are exact for a fixed-rate loan paid as scheduled. The premium is an estimate — lenders quote PMI by credit and loan-to-value, so confirm the rate on your loan estimate. It excludes appraisal-based early cancellation from appreciation, extra payments (which pull the dates in), FHA/VA insurance rules, and lender-paid PMI structures.