PMI Calculator: What Private Mortgage Insurance Costs and When It Ends
Published 06/10/2026 by
Ante Mazalin
Summary:
A PMI calculator estimates the cost of private mortgage insurance and shows when you can drop it as you pay down your loan.
A few factors set the cost and the end date.
- Loan amount and rate: PMI is charged as a yearly percentage of the loan, then split across your payments.
- Down payment: PMI applies when you put down less than 20%, and a larger down payment lowers the rate.
- Cancellation point: You can request removal once you build enough equity, and it ends automatically after that.
PMI feels like money down the drain because it protects the lender, not you. The good news is it is temporary, and knowing the cancellation rules lets you end it as early as the law allows.
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What PMI is and why you pay it
Private mortgage insurance is a fee lenders require when your down payment is under 20%. It protects the lender if you default, but you pay the premium, usually bundled into your monthly mortgage payment.
The annual cost typically runs from 0.46% to 1.5% of the loan amount, set by your credit score and down payment. A stronger credit profile and a larger down payment both push the rate toward the low end.
The math: what PMI costs per month
The table shows annual and monthly PMI on a $300,000 loan across the common rate range.
| PMI rate | Annual cost | Monthly cost |
|---|---|---|
| 0.46% (strong credit) | $1,380 | $115 |
| 0.50% | $1,500 | $125 |
| 1.00% | $3,000 | $250 |
| 1.50% (lower credit) | $4,500 | $375 |
The credit-score swing is the headline: the same $300,000 loan can carry $115 or $375 a month in PMI depending on your profile, a $260 monthly gap for identical debt.
Because PMI ends once you build enough equity, the total you pay depends on how fast you reach the cancellation point.
Pro Tip: For 2026, PMI premiums are deductible as mortgage interest if you itemize, under the One Big Beautiful Bill Act. That softens the cost while you still carry it, but canceling PMI as soon as you hit 80% still beats keeping it for the write-off.
When PMI ends: the 80% and 78% rules
The Homeowners Protection Act sets two cancellation triggers based on your loan-to-value ratio against the home’s original value:
- 80% LTV, by request: Once your balance reaches 80% of the original value, you can ask your lender in writing to cancel PMI. You must be current and may need an appraisal.
- 78% LTV, automatic: The lender must cancel PMI automatically when your scheduled balance hits 78% of the original value, with no request needed.
You can reach 80% faster with extra principal payments, which is the one lever fully in your control.
How to get rid of PMI faster
Five steps can end PMI years ahead of schedule.
- Find your original home value and current balance, then divide to get your loan-to-value ratio.
- Make extra principal payments to reach 80% LTV sooner than the amortization schedule would.
- At 80%, send a written cancellation request to your servicer and ask what they require.
- If your home has appreciated, ask about cancellation based on current value, which may need a lender-ordered appraisal ($300 to $600).
- If your servicer resists, the 78% automatic termination still applies by law once the scheduled balance gets there.
How to avoid PMI in the first place
- Put down 20%. The simplest route; no PMI at all.
- Lender-paid PMI. The lender covers PMI in exchange for a higher rate, which can cost more over a long hold.
- Piggyback loan. A second loan covers part of the down payment to keep the first mortgage at 80%, though the second loan carries its own rate.
- VA loan. Eligible veterans skip mortgage insurance entirely, replaced by a one-time funding fee.
Key takeaways
- PMI applies when you put down less than 20% and costs roughly 0.46% to 1.5% of the loan per year.
- On a $300,000 loan that is about $115 to $375 a month, driven mostly by your credit score.
- You can request PMI removal at 80% loan-to-value, and it ends automatically at 78%.
- Extra principal payments reach the cancellation point faster, the one lever fully in your control.
- PMI premiums are deductible as mortgage interest for 2026 if you itemize.
FAQ
How much does PMI cost per month?
Typically 0.46% to 1.5% of the loan amount per year, split into monthly payments. On a $300,000 loan that is roughly $115 to $375 a month, with your credit score the biggest factor.
When can I cancel PMI?
You can request cancellation when your balance reaches 80% of the home’s original value, and your lender must cancel it automatically at 78%. You must be current on payments.
Can I cancel PMI if my home value went up?
Often yes. Many lenders allow cancellation based on a higher current value, usually requiring a lender-approved appraisal that costs about $300 to $600.
How can I get rid of PMI faster?
Make extra principal payments to reach 80% loan-to-value ahead of schedule, then request cancellation in writing. Appreciation can also get you there sooner.
Is PMI tax-deductible?
For the 2026 tax year, PMI premiums are deductible as mortgage interest under the One Big Beautiful Bill Act, provided you itemize.
Does FHA mortgage insurance work the same way?
No. FHA loans carry a separate mortgage insurance premium that, for most loans, lasts the life of the loan and cannot be canceled by reaching 80% equity. Only conventional loan PMI follows the 80% and 78% rules.
PMI is a cost you can actively shorten, and the rest of your mortgage plan affects how fast. Sense AI, the AI assistant in the SuperMoney app, can help you see whether extra payments toward dropping PMI beat your other uses for the cash.
Reaching 80% equity faster is the whole game with PMI. The mortgage payoff calculator shows how extra payments accelerate that, and if you have a lump sum, the mortgage recast calculator can lower your payment once the balance drops.
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