Answer: Enter your values and the PMI Calculator returns the exact result instantly — formula, worked example, and a plain-English explanation are included below the tool.
Estimate private mortgage insurance and when it drops off your loan
| Credit Score | Typical Annual PMI Rate | Monthly Cost on a $360,000 Loan |
|---|---|---|
| 760+ | 0.30% – 0.60% | $90 – $180 |
| 720 – 759 | 0.40% – 0.75% | $120 – $225 |
| 680 – 719 | 0.55% – 0.95% | $165 – $285 |
| 640 – 679 | 0.85% – 1.30% | $255 – $390 |
| 620 – 639 | 1.10% – 1.65% | $330 – $495 |
Rates also climb with higher loan-to-value ratios and larger loan sizes. A 5% down loan pays noticeably more than a 15% down loan at the same credit score, so these bands are a starting point, not a quote.
Private mortgage insurance protects the lender (not you) when you put down less than 20%. It gets tacked onto your monthly payment until your loan balance falls to a set share of the home's original value. This calculator shows what PMI costs each month, and just as importantly, when it goes away.
Loan amount = home price − down payment. LTV = loan ÷ price. Monthly PMI = loan × annual PMI rate ÷ 12. For the removal timeline, the calculator runs your amortization schedule month by month at your interest rate and finds when the balance hits 80% of the original value (you can request removal) and 78% (your servicer must cancel it automatically).
Enter the home price and down payment, as either a percentage or a dollar amount; the two fields stay in sync. The default 0.55% PMI rate is a reasonable middle estimate, but swap in a quote if you have one, since your credit score moves this number a lot. If your down payment is 20% or more, you'll see the "No PMI required" message instead of a cost.
Take a $400,000 home with 10% down. That leaves a $360,000 loan at 90% LTV. At a 0.55% annual PMI rate, you'd pay $1,980 a year, which is $165 a month on top of principal, interest, taxes, and insurance.
Now the timeline. At 6.5% on a 30-year loan, the balance reaches $320,000 (80% of the original value) in month 95, about 7 years 11 months in, when you can request removal. Automatic termination at $312,000 (78%) lands at month 109, roughly 9 years 1 month. Wait for the automatic cutoff and you'll have paid about $17,985 in PMI. That's a strong argument for requesting removal early, making extra principal payments, or asking for a reappraisal if prices in your area have climbed.
| Milestone | Trigger | What happens |
|---|---|---|
| Requested cancellation | Balance hits 80% of the home's original value (on schedule or via prepayments) | You ask in writing; servicer must cancel if you're current with a good payment history |
| Requested via appreciation | New appraisal showing ~75% LTV after 2 years, or ~80% after 5 years | Servicer may cancel based on current value instead of the payoff schedule |
| Automatic termination | Scheduled balance reaches 78% of original value | Servicer must cancel on that date, provided payments are current |
| Final termination | Midpoint of the amortization schedule (month 180 on a 30-year loan) | PMI must end outright, regardless of LTV |
These rights come from the Homeowners Protection Act and apply to conventional loans closed on or after July 29, 1999. FHA loans follow different rules — FHA mortgage insurance premiums mostly run for the life of the loan unless you put 10% or more down.
Extra principal shortens the wait on the same $400,000 example (10% down, 6.5% on a 30-year loan, 0.55% PMI rate) — and every month cut saves $165 in PMI on top of the interest you skip:
| Extra principal / month | Hit 80% LTV (can request removal) | Hit 78% (auto-terminated) | Total PMI paid to auto-termination |
|---|---|---|---|
| $0 | Month 95 (7 yr 11 mo) | Month 109 | $17,985 |
| $50 | Month 85 (7 yr 1 mo) | Month 98 | $16,170 |
| $100 | Month 77 (6 yr 5 mo) | Month 89 | $14,685 |
| $200 | Month 64 (5 yr 4 mo) | Month 75 | $12,375 |
| $300 | Month 56 (4 yr 8 mo) | Month 65 | $10,725 |
$300 a month extra — about the cost of the PMI itself plus a bit — clears the mortgage insurance in under five years and saves roughly $7,260 in PMI alone. For the step-by-step playbook, see how to get rid of PMI, including the appraisal route when home prices, not payments, are what moved your equity.
With 10% down, the loan is $360,000 and a typical 0.55% PMI rate works out to $1,980 a year, or $165 a month. Your actual rate depends mostly on credit score and loan-to-value: strong credit can pay 0.30% while lower scores can pay 1.5% or more on the same loan.
You can request cancellation once your balance falls to 80% of the home's original value, and your servicer must drop it automatically at 78%. You can also get there faster with extra principal payments, or ask for removal based on a new appraisal if your home's value has risen enough.
Yes. Under the Homeowners Protection Act, lenders must cancel PMI when your balance reaches 78% of the original purchase price, as long as you're current on payments. That happens on the scheduled amortization date, so it can take years. Requesting removal at 80% LTV gets it done sooner.
PMI pricing is heavily credit-driven. Borrowers at 760 or above typically pay around 0.30% to 0.60% of the loan per year, while scores in the 620 to 639 range can pay 1.10% to 1.65%. On a $360,000 loan, that's the difference between roughly $90 and $495 a month.
Sometimes. Lender-paid PMI trades the monthly fee for a higher rate, piggyback 80-10-10 loans use a second mortgage to keep the first at 80% LTV, and VA loans skip PMI entirely. Each option has trade-offs, so compare the total monthly cost against just paying PMI until it cancels.
At the midpoint of your loan's amortization schedule — month 180 on a 30-year loan — the Homeowners Protection Act requires PMI to be cancelled outright, no matter what your balance is, as long as you're current on the loan.
Not currently. The deduction existed for years but expired after tax year 2021 and has not been reinstated. Mortgage insurance premiums have been non-deductible since the 2022 tax year, unlike mortgage interest itself.