PMI calculator
Private mortgage insurance protects the lender, not you, and it disappears on a schedule you should know in advance. This calculator prices the premium, shows the LTV path, and finds the month the balance reaches the 78% automatic-termination point.
| LTV | Balance | Meaning |
|---|---|---|
| 90% | $360,000 | Typical purchase LTV with 10% down |
| 80% | $320,000 | May request cancellation |
| 78% | $312,000 | Automatic termination |
| Current | $360,000 | 90.0% |
Based on the original value and scheduled payments; appreciation and extra payments change the timing.
loan / home value · Above 80% usually triggers PMI.
loan × annual PMI rate · Charged monthly as part of the payment.
balance ≤ 78% of original value · Automatic under the Homeowners Protection Act.
A clear path from inputs to results.
Private mortgage insurance protects the lender, not you, and it disappears on a schedule you should know in advance. This calculator prices the premium, shows the LTV path, and finds the month the balance reaches the 78% automatic-termination point.
How to use
- Enter the purchase price and down payment.
- Set the lender’s annual PMI rate.
- Enter the mortgage rate.
- Read the monthly premium and the months to cancellation.
The formula
Reference: Homeowners Protection Act: automatic termination at 78% LTV, cancellation on request at 80%.
Worked example
$400,000 home, $40,000 down, 0.5% PMI
- Price $400,000.
- Down payment $40,000.
- PMI rate 0.50% a year.
- Mortgage rate 6.5%.
- 1
Loan: $360,000; LTV 90%.
- 2
Annual PMI: 360,000 × 0.005 = $1,800; monthly $150.
- 3
Cancellation balance: 78% of 400,000 = $312,000.
- 4
Scheduled payments reach that balance in 109 months.
- 5
Total PMI paid: 150 × 109 = $16,350.
PMI $150/month · LTV 90% · ends after 109 months · $16,350 total.
Interpreting the result
PMI is priced on the loan, not on the risk you feel. At 90% LTV it typically costs 0.3–1.5% of the loan a year, which on $360,000 is $1,080–$5,400. Paying the loan down to 80% early — or getting a reappraisal after appreciation — can remove it years sooner than the scheduled date.
Assumptions & limitations
- US conventional loan; FHA mortgage insurance follows different rules.
- Cancellation is based on the original value and scheduled amortisation.
- No extra principal payments, which would shorten the period.
Frequently asked questions
When does PMI end automatically?
At 78% of the original value on the original amortisation schedule. You can usually request cancellation at 80%.
Is PMI tax deductible?
It has been deductible in some years subject to income limits. Check the current rules before relying on it.
Does appreciation remove PMI?
Sometimes, but the lender must agree and may require an appraisal. Scheduled amortisation is the guaranteed path.
Methodology last reviewed 2026-10-21. Results are informational and not financial or engineering advice — see our disclaimer.