PMI Calculator
PMI is charged until you have enough equity. You can request cancellation at 80% loan-to-value; it terminates automatically at 78%.
$187.50 / month in PMI
- Can request removal
- 10 yr at 80% LTV
- Automatic removal
- 11 yr 1 mo at 78% LTV
- Total PMI paid
- $22,500
How it works
Monthly PMI is the annual premium rate applied to the original loan balance. The amortising balance is tracked against the original home price to find the 80% and 78% LTV months.
Frequently asked questions
When does PMI go away?
You can request cancellation once your loan balance reaches 80% of the original home price (loan-to-value), and the lender must automatically terminate it at 78% LTV as long as you're current on payments — both based on the original amortization schedule, not a new appraisal.
How is monthly PMI calculated?
PMI is typically quoted as an annual percentage of the original loan balance — commonly 0.3% to 1.5% depending on your credit score and down payment — divided by 12 for the monthly charge. It doesn't shrink as your balance does; it simply stops once you hit the LTV threshold.
Can I get PMI removed early?
Making extra principal payments reaches 80% LTV sooner, and a few lenders will also remove PMI early based on a new appraisal showing enough value appreciation — ask your servicer about their specific policy.
Is PMI the same as homeowners insurance?
No. PMI protects the lender if you default; it pays nothing to you and doesn't cover damage to the home. Homeowners insurance is separate and protects you and the property.
Learn more: PMI explained: what it costs and how to remove it — Why private mortgage insurance exists, what it costs per year, and the three ways to get rid of it — automatic termination, requesting cancellation, and refinancing.