How to use this PMI calculator
Choose Estimate conventional PMI to model borrower-paid private mortgage insurance for one conventional mortgage scenario. Enter the home or original value, down payment percentage, mortgage interest rate, loan term, and the annual PMI rate you want to evaluate.
The annual PMI rate is an assumption rather than a quote from an insurer or lender. Use a rate that reflects the mortgage option you are considering, or test several reasonable assumptions to see how PMI pricing could affect the monthly cost.
Choose Compare two PMI scenarios when you want to see how different down payments or PMI rates affect the same home and mortgage. The home value, mortgage interest rate, and loan term are shared, while Scenario A and Scenario B can use different down payment percentages and annual PMI rates.
Understanding your PMI results
Initial loan-to-value ratio, or LTV, shows the mortgage amount relative to the home or original value at the start of the modeled loan. A smaller down payment generally produces a higher initial LTV.
Loan amount is the estimated mortgage balance after accounting for the entered down payment. The calculator also shows the resulting monthly PMI and annual PMI based on the PMI-rate assumption you entered.
Principal and interest plus PMI combines the regular modeled mortgage principal-and-interest payment with the estimated monthly PMI cost. It is not a complete monthly housing-cost estimate because other expenses such as property taxes, homeowners insurance, HOA dues, and other charges are outside this calculator.
The calculator also provides planning estimates for several potential PMI-ending milestones. The 80% request milestone represents the point at which the modeled mortgage reaches an LTV commonly associated with borrower-requested PMI cancellation. Reaching that point does not itself guarantee that a cancellation request will be approved.
The 78% automatic termination milestone represents a later modeled LTV benchmark associated with automatic termination rules for eligible conventional borrower-paid PMI. Actual eligibility can depend on the mortgage, payment status, servicing requirements, and other conditions.
The calculator also identifies a midpoint backstop as an additional planning benchmark. These milestones are intended to help you understand the possible duration of PMI rather than predict the exact date on which your lender or servicer will remove it.
Estimated PMI paid through the modeled milestones can help put a recurring monthly premium into a longer-term cost context. The calculator may also show the potential PMI savings associated with successfully ending PMI at the earlier 80% request milestone instead of continuing to the later modeled termination point.
What can affect your PMI estimate
Down payment and initial LTV
The size of the down payment is one of the most important factors in the comparison. A larger down payment reduces the starting loan amount and initial LTV and may reduce or eliminate the period during which borrower-paid PMI is needed.
That does not automatically mean the largest down payment is the best choice. Putting more cash into the home means committing more money upfront, so the PMI savings should be considered alongside emergency savings, closing costs, other financial goals, and the value of keeping some cash available.
The PMI rate you actually qualify for
PMI pricing can vary. The rate available to a borrower may depend on factors that are not represented by a single calculator input, including characteristics of the borrower, mortgage, property, and insurance arrangement.
Because the calculator asks you to supply an annual PMI-rate assumption, the result is most useful for testing a known quote or comparing plausible rates rather than treating one assumed rate as a guaranteed future premium.
Mortgage interest rate and term
The mortgage interest rate and term affect the underlying mortgage payment and the way the loan balance changes over time. That can affect both the combined principal-and-interest-plus-PMI cost and the projected timing of PMI milestones.
A shorter term may reduce the time needed to pay down the mortgage but usually requires a larger monthly principal-and-interest payment. A longer term can reduce the regular mortgage payment while extending the repayment period.
Why the 80% and 78% PMI milestones are different
Borrower-requested cancellation and automatic termination are not the same event. The earlier 80% benchmark can be useful for estimating when a borrower may be able to ask for qualifying PMI to be removed, while the 78% benchmark represents a separate automatic-termination concept for eligible loans.
A projected date therefore should not be interpreted as a promise that PMI will disappear on that exact month. The conditions that apply to your mortgage and servicer remain important, especially when requesting cancellation before an automatic termination point.
Comparing two PMI scenarios
Comparison mode keeps the home value, mortgage interest rate, and loan term the same so you can focus on the effect of changing the down payment and annual PMI rate.
This can be useful when deciding whether putting more cash down is worth the tradeoff. One scenario may require more money upfront but produce a smaller loan, lower LTV, lower monthly PMI, or a shorter modeled PMI period. Another may preserve more cash at closing while carrying a higher ongoing mortgage-insurance cost.
Review the comparison as a package rather than choosing a scenario only because one number is lower. The calculator can help compare upfront cash, monthly cost, projected PMI duration, PMI cost, and total modeled mortgage interest so that the tradeoff between cash today and financing costs over time is easier to see.
Important assumptions and limitations
This calculator is designed specifically for conventional borrower-paid private mortgage insurance. It is not intended to model FHA mortgage insurance premiums, VA or USDA program fees, lender-paid mortgage insurance, mortgage life insurance, or other insurance and guarantee structures.
The PMI rate is a visitor-entered assumption. Actual mortgage-insurance pricing, eligibility, payment structure, and removal requirements can differ by lender, insurer, loan program, borrower profile, property, and other circumstances.
The projected 80% request, 78% automatic-termination, and midpoint milestones are planning estimates. They are not guarantees of cancellation or termination on a specific date. A servicer may require applicable eligibility conditions to be satisfied before borrower-requested cancellation.
The calculator does not assume that future home-price appreciation or a new appraisal will create an earlier PMI-removal opportunity. It also does not model every situation in which additional principal payments, refinancing, loan modification, changes in property value, or other events could alter the actual PMI timeline.
The principal-and-interest-plus-PMI result is not a complete housing payment. Property taxes, homeowners insurance, HOA dues, closing costs, maintenance, utilities, and other homeownership expenses should be considered separately when evaluating affordability.
Use the results as planning estimates and compare them with the actual loan terms, PMI disclosures, quotes, and servicing requirements provided for a mortgage you are considering.
Related calculators
Mortgage Affordability Calculator
How PMI fits into the bigger mortgage decision
PMI can make it possible to buy a home with a smaller down payment, but it also adds to the cost of carrying the mortgage. When weighing your options, consider PMI alongside the size of your down payment, monthly housing costs, cash reserves, and the type of mortgage that fits your situation. See more guidance in MarketReview's mortgage section.