Mortgage Calculator with PMI
Estimate your monthly payment including private mortgage insurance, and see when PMI drops off as you build equity.
A worked example
Running this tool on current national benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)) — swap in your own numbers to see how the result moves.
- Home price
- $340,000
- Down payment
- $34,000
- Interest rate
- 6.50%
- Loan term (years)
- 30
- PMI rate (per year)
- 0.70%
includes $178.50 PMI at 90% LTV
- Principal & interest$1,934.13
- Monthly PMI$178.50
- PMI ends in95 mo
How the monthly payment with PMI changes with home price
Holding the other inputs at the example above, here is how the result moves as home price changes.
| Home price | Monthly payment with PMI | Principal & interest |
|---|---|---|
| $250,000 | $1,491.27 | $1,365.27 |
| $350,000 | $2,181.67 | $1,997.33 |
| $500,000 | $3,217.27 | $2,945.44 |
| $750,000 | $4,943.27 | $4,525.61 |
The math behind it
The loan is your home price minus down payment, amortized at your rate over the term for the principal-and-interest payment. If your loan-to-value is above 80% — less than 20% down — the calculator adds monthly PMI equal to your annual PMI rate times the loan, divided by twelve. It then walks the amortization schedule to find the month your balance falls to 80% of the original price, which is when PMI can be removed, and totals the PMI you would pay until then.
Assumptions & limits
- PMI applies only when loan-to-value starts above 80%. With 20% or more down, no PMI is charged.
- PMI removal is estimated at 80% of the original home price, reached through scheduled payments alone — it does not assume home appreciation, which could get you there sooner.
- The PMI rate is a flat annual percentage of the loan you enter; real PMI varies with credit score and down payment.
- The payment covers principal, interest, and PMI only. Property taxes, insurance, and HOA dues are not included.
- A single fixed interest rate is assumed for the whole term.
PMI removal thresholds
For conventional loans, based on the original home value under the Homeowners Protection Act.
| Loan-to-value | PMI status |
|---|---|
| Above 80% | PMI generally required |
| 80% (20% equity) | You may request cancellation |
| 78% | Servicer must cancel automatically if payments are current |
Source: Freddie Mac PMMS via FRED. Annual averages; latest weekly reading shown.
Common questions
When does PMI go away?
On a conventional loan you can request cancellation once your balance reaches 80% of the original home value, and the servicer must drop it automatically at 78% if you are current. This calculator estimates that month from your amortization schedule. Reaching the threshold faster through extra payments or a new appraisal after improvements can move the date up.
How is PMI different from FHA mortgage insurance?
PMI is private insurance on conventional loans and cancels once you build 20% equity. FHA mortgage insurance is a government program that, with less than 10% down, usually lasts the life of the loan and can only be removed by refinancing. This calculator models conventional PMI.
What is a typical PMI rate?
PMI commonly runs from roughly 0.3% to over 1% of the loan per year, driven mainly by your credit score and down payment. The calculator defaults to a mid-range figure, but enter your own quoted rate for an accurate estimate.