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    PMI Calculator

    Updated: April 21 2026

    Written by Bennett Leckrone
    Bennett Leckrone

    Written by
    Bennett Leckrone
    Writer / Reviewer / Expert

    Bennett Leckrone is the editorial manager and an analyst for Lower. He specializes in making complicated mortgage topics accessible for consumers. That includes both in-depth product guides and in-depth analysis on what economic moves mean for homebuyers and refinancers. He was previously a business reporter with a focus on higher education and fintech at BestColleges. In that role, he reported on the development of fintech and AI curriculum, as well as the rapidly changing nature of finance education. He also wrote guides to help business students navigate AI and online education. He also reported on state politics at Maryland Matters, with a focus on how policy affected people and businesses. He holds a bachelor of science in journalism degree from Ohio University.
    Reviewed by Jake Driscoll
    Jake Driscoll

    Reviewed by
    Jake Driscoll
    Reviewer

    Jake Driscoll is an experienced loan advisor and trainer who specializes in simplifying the mortgage process for both homebuyers and loan officers. He’s an expert in all things mortgage and refinance, and currently serves as the Associate Vice President for Training and Development at Lower. In that role, he prepares aspiring loan officers for the NMLS SAFE Exam and serves as a mentor to loan officers across Lower. As an expert reviewer, Jake evaluates mortgage and personal finance content for accuracy, clarity, and real-world applicability. He specializes in ensuring information reflects how lending actually works in practice so consumers can make confident, informed decisions.
    Our Editorial Standards

    Key Takeaways

    • PMI is usually part of the monthly cost when a conventional mortgage starts above 80% loan-to-value, which often means a down payment below 20%.
    • Our PMI calculator estimates the monthly mortgage insurance cost by applying an annual PMI factor to the loan amount and dividing by 12.
    • Our calculator also tells you when PMI might drop off.
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    PMI Calculator

    Estimate monthly PMI and how long it may stick around under a standard fixed-rate loan.

    Estimated Monthly PMI

    $0

    What’s driving this estimateLive from your current assumptions
    Use the sliders for quick comparisons or tap the blue value pills to type exact numbers.
    Loan Term

    PMI estimate only. Actual PMI pricing and cancellation rules vary by credit score, loan program, original value, current value, and servicer requirements. Not a loan offer.

    How this calculator works

    Move the sliders to test scenarios, or tap any blue value pill to type an exact number. The headline result and supporting detail pills update live as you change inputs so you can compare options without resetting your work.

    Methodology: Loan-to-value (LTV) = loan amount ÷ home price × 100. If LTV > 80%, monthly PMI = loan × PMI rate ÷ 12. The drop-off estimate amortizes the loan month by month at the chosen rate and term and reports the first month the balance reaches 80% of the original home price (the LTV threshold at which borrower-paid PMI is typically eligible to be canceled on conventional loans).

    Worked example: Home price $350,000, 10% down, 6.5% rate, 0.5% PMI, 30-yr: loan $315,000; starting LTV 90%; monthly PMI = $315,000 × 0.005 ÷ 12 ≈ $131/mo; estimated drop-off when balance hits $280,000 ≈ 9 years 3 months.

    Use these estimates to compare options and prepare questions for a lender. Final pricing, eligibility, and approval depend on a full application and lender review.

    How to Use Our PMI Calculator

    Use the calculator above to estimate how much private mortgage insurance (PMI) could add to a conventional mortgage payment.

    For many buyers, PMI is one of the biggest differences between a low-down-payment scenario and a 20% down scenario.

    That does not automatically make PMI bad. In many cases, it is the tradeoff that lets you buy sooner with less cash up front. 

    Keep in mind that our calculator is only an estimate. Exact PMI requirements vary by both borrower and down payment. 

    Input What It Means
    Home price Purchase price or estimated value
    Down payment Your initial equity contribution
    Loan amount Amount financed after the down payment
    PMI rate Estimated annual mortgage insurance factor
    Interest rate Rate used to estimate the principal-and-interest payment

    What PMI Means

    PMI stands for private mortgage insurance. On a conventional loan, it generally comes into play when the starting loan-to-value ratio is above 80%. In simple terms, that usually means you are borrowing more than 80% of the home value.

    PMI protects the lender, not the borrower. But for borrowers, its practical role is different. It can make a lower down payment possible when saving 20% would take much longer.

    How To Calculate PMI

    Our calculator's basic estimate uses three parts: the home price, the down payment, and an annual PMI factor. First, the calculator finds the loan amount. Next, it applies the annual PMI rate to that loan amount. Then it divides the annual result by 12 to estimate the monthly PMI cost.

    The core formulas are:

    • Loan-to-value, or LTV = loan amount ÷ home value

    • Monthly PMI = loan amount × annual PMI rate ÷ 12

    When PMI Usually Applies

    For conventional mortgages, PMI is typically required when the loan starts above 80% LTV. A calculator helps you test how the monthly payment changes when you move from one down payment level to another, such as 5% 10%, or 15%down.

    That comparison is often more useful than focusing on PMI by itself, because a bigger down payment also lowers the loan amount and principal-and-interest payment.

    How PMI Ends

    PMI is not necessarily a permanent cost. On many conventional loans, borrowers have the right to request cancellation when the principal balance is scheduled to reach 80% of the home’s original value, subject to the servicer’s requirements. It also generally terminates automatically once the principal balance is scheduled to reach 78% of the original value, assuming the loan is current.

    The Bottom Line

    Our PMI calculator helps you estimate one of the most important moving parts in a low-down-payment conventional mortgage. It shows how down payment, loan amount, and the PMI factor interact inside the monthly payment.

    Frequently Asked Questions

    What Does PMI Stand For?

    PMI stands for private mortgage insurance.

    When Do You Have To Pay PMI?

    On a conventional mortgage, PMI is generally required when the loan starts above 80% loan-to-value.

    How Is PMI Calculated Per Month?

    Our calculator estimates the monthly amount by multiplying the loan amount by the annual PMI factor, then dividing by 12.

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