Enter mortgage details
Example data table
| Scenario | Home Price | Down Payment | Loan Amount | Rate | PMI Rate | Estimated Monthly PMI |
|---|---|---|---|---|---|---|
| Starter home | $300,000 | 5% | $285,000 | 6.50% | 0.90% | $213.75 |
| Move-up buyer | $425,000 | 10% | $382,500 | 6.75% | 0.75% | $239.06 |
| Lower PMI profile | $500,000 | 15% | $425,000 | 6.25% | 0.45% | $159.38 |
Formula used
1) Loan amount
Loan Amount = Home Price − Down Payment
2) Down payment percent
Down Payment % = (Down Payment ÷ Home Price) × 100
3) Starting LTV
LTV = (Loan Amount ÷ Home Price) × 100
4) Monthly principal and interest
Monthly P&I = P × [r(1 + r)n] ÷ [(1 + r)n − 1]
where P is loan amount, r is monthly interest rate, and n is the number of months.
5) Monthly PMI
Monthly PMI = (Loan Amount × Annual PMI Rate) ÷ 12
6) Total monthly housing payment with PMI
Total = Monthly P&I + Monthly PMI + Monthly Property Tax + Monthly Insurance + Monthly HOA
7) PMI removal timing
The calculator builds an amortization schedule month by month and checks when balance ÷ original value reaches 80% and 78%.
It also shows an illustrative 80% threshold using projected appreciated value.
Actual lender rules can vary. This page provides an estimate, not a lending decision or servicing notice.
How to use this calculator
- Enter the purchase price of the property.
- Choose whether your down payment is a percentage or a fixed amount.
- Add the mortgage interest rate and loan term.
- Enter the annual PMI rate from your quote or estimate.
- Include annual property tax, annual insurance, and any monthly HOA dues.
- Add an optional extra monthly principal payment to see faster PMI removal and payoff.
- Use the appreciation field for an illustrative value-based cancellation estimate.
- Press the calculate button to view the result summary above the form.
- Export the displayed result section using the CSV or PDF buttons.
FAQs
1. What is PMI?
PMI is private mortgage insurance. It usually protects the lender when a borrower makes a smaller down payment and starts with a higher loan-to-value ratio.
2. When is PMI usually required?
PMI is commonly required when the initial down payment is below 20% and the starting LTV is above 80%, though product rules differ by lender.
3. Does this calculator include taxes and insurance?
Yes. The calculator adds annual property tax and homeowners insurance, then converts them into monthly amounts to estimate a fuller housing payment.
4. How is PMI removal estimated?
The page calculates an amortization schedule and checks when the remaining balance reaches 80% and 78% of the original value. It also shows an illustrative appreciated-value estimate.
5. Can extra payments remove PMI faster?
Yes. Extra principal payments reduce the balance sooner, which can move the estimated 80% and 78% LTV dates earlier and cut total PMI cost.
6. Is the PMI amount constant every month?
This estimator assumes a level monthly PMI based on the original loan amount and annual PMI rate. Some real loan structures may calculate premiums differently.
7. Why show both 80% and 78% LTV?
Many borrowers track 80% LTV because it is a common cancellation target, while 78% LTV is often discussed as a common automatic termination benchmark.
8. Can I rely on this result for closing documents?
Use it for planning and comparison. Final mortgage, escrow, PMI, servicing, and cancellation details should always be confirmed with your lender or loan servicer.