PMI Calculator

About this calculator

Private mortgage insurance (PMI) is typically required by conventional lenders when a homebuyer puts down less than 20% of the purchase price, protecting the lender — not the borrower — against loss if the loan defaults. The premium is usually expressed as an annual rate applied to the loan balance and then divided into twelve monthly payments added on top of principal and interest.

In the United States, the Homeowners Protection Act generally allows borrowers to request cancellation once the loan balance drops to 80% of the original home value, and requires automatic termination at 78%, so PMI is usually a temporary cost rather than a permanent one — but it can add a meaningful amount to the monthly payment in the meantime. This calculator takes the loan amount and the annual PMI rate to estimate both the monthly and annual PMI cost.