PMI calculator
What private mortgage insurance costs and — more usefully — the exact month you can demand it stops, which no lender will remind you about.
Covers 2026 · rates as at 2026-01-01
Estimated PMI each month
Estimate$129.00
90.0% loan-to-value, above the 80% threshold
- Months until you can request removal
- 95 months
- Months until automatic termination
- 109 months
- Cost of not asking at 80%
- $1,808.00
| Home price | $420,000 |
|---|---|
| Deposit | -$42,000 |
| Loan amount | $378,000 |
| Loan-to-value | 90% |
| Annual premium | $1,550.00 |
| Total paid before you could cancel | $12,269 |
- The premium is an indicative estimate. Actual rates are set by the insurer and depend on credit score, loan type and term — ask your lender for the quoted figure.
- Cancellation is measured against the original purchase price, not the current market value, so a rising market does not remove PMI any faster.
On $420,000 with 10% down the loan-to-value is 90%, so PMI applies until the balance falls to $336,000 — the 80% mark where you can request removal.
Over the life of it
How this is calculated
Two dates, and only one is automatic
At 80% of the original value you may request cancellation in writing. At 78% the servicer must terminate it without being asked. The gap between those dates is typically 6 to 10 months of premiums nobody has to refund you.
request at balance ≤ 80% of price, automatic at 78%It is measured against the original price
Cancellation tracks the original purchase price, not today’s market value. A home that appreciates 20% does not cancel PMI any sooner — only paying down the balance does, which is why extra payments have a second benefit here.
The premium is not published anywhere
Rates are set by the insurer from credit score, loan type and term, and run roughly 0.28% of the loan a year at 80–85% loan-to-value up to about 1.15% above 95%. The figure here is indicative; your lender must give you the quoted one.
Worked example: $420,000 home with $42,000 down at 6.5% over 30 years
| Price | $420,000 |
|---|---|
| Down payment | $42,000 |
| Rate | 6.5% |
| Loan-to-value | 90% |
|---|---|
| Request at | $336,000 balance |
| Automatic at | $327,600 balance |
Waiting for automatic termination instead of writing to the servicer at 80% typically costs several hundred dollars of premiums that are never refunded.
What this assumes
- A conventional loan, not FHA.
- Borrower-paid monthly PMI, not a single upfront premium.
- Payments made on schedule with no extra principal.
- The premium rate is indicative unless you entered a quote.
Where this commonly goes wrong
- FHA loans are different: mortgage insurance runs for the life of the loan when the down payment is under 10%, and only refinancing removes it.
- Lender-paid PMI is not free — it is priced into a permanently higher interest rate that never cancels at any loan-to-value.
- Cancellation requires the loan to be current, so a single late payment near the threshold can push the date back months.
Questions
How much does PMI cost?
Roughly 0.28% of the loan a year at 80–85% loan-to-value, rising to about 1.15% above 95%. On a $378,000 loan at 90% that is a few hundred dollars a month, though the exact rate is set by the insurer.
When can I cancel PMI?
You may request cancellation once the balance reaches 80% of the original purchase price, and the servicer must terminate it automatically at 78%. Asking at 80% rather than waiting saves several months of premiums.
Does my home value increasing remove PMI?
Not under the automatic rules, which track the original purchase price. Some servicers will cancel early on a new appraisal you pay for, but they are not obliged to and the criteria vary.
How do I avoid PMI?
Put down 20%, use a piggyback second mortgage, or take a lender-paid arrangement priced into the rate. Each has a cost — the question is whether it is less than the premiums you would otherwise pay before cancelling.
Is FHA mortgage insurance the same?
No. FHA charges an upfront premium plus an annual one that lasts the entire loan term when the down payment is under 10%. It does not cancel at 78%, so refinancing to a conventional loan is the only exit.
Does paying extra remove PMI sooner?
Yes, and it is one of the strongest arguments for extra payments early on. Every extra dollar brings the balance to the 80% threshold sooner, which ends the premium months or years earlier than the schedule would.
Related tools
Sources
Estimate only, based on published IRS figures for 2026. Not tax or legal advice. Confirm your position with the IRS, a CPA, or an enrolled agent.
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