InputsLive
Home price
$
Down payment
$
Interest rate
%
Loan term
yrs
Annual property tax
$/yr
Annual homeowners insurance
$/yr
Result
Monthly payment (PITI)
$2,313
P&I: $1,863 · Loan: $280,000
Monthly PITI$2,313
P&I only$1,863
Total interest$390,625
Total cost$832,625

Estimate only. Actual payments may vary. PMI rate assumed 0.5% if down payment < 20%. Consult a licensed lender for exact terms.

Results are estimates. Consult a professional.

How it's calculated

How the mortgage with PMI calculator works

Private mortgage insurance (PMI) is required on conventional loans when the down payment is less than 20% of the home's purchase price. The calculator adds the monthly PMI cost to your principal-and-interest payment so you can see the true all-in payment from day one — and the month PMI drops off as you build equity.

loan amount = purchase_price down_payment
LTV = loan_amount ÷ purchase_price
monthly P&I M = P × r × (1+r)^n ÷ ((1+r)^n 1)
annual PMI cost = loan_amount × PMI_annual_rate
monthly PMI = annual_PMI_cost ÷ 12
total monthly = M + monthly_PMI (until LTV reaches 80%)
PMI drops when balance ≤ purchase_price × 80% (Homeowners Protection Act)
PMI cancellation rules: Homeowners Protection Act 1998; CFPB PMI explainer.
Example

Worked example: $400,000 home, 5% down, 7% rate, 0.7% PMI

Example: $400,000 purchase, $20,000 down (5%), $380,000 loan

A buyer purchases a $400,000 home with a 5% down payment ($20,000). Loan: $380,000 at 7% over 30 years. PMI rate: 0.7% annually. What is the total monthly payment and when does PMI end?

P&I = $380,000 × 0.005833 × (1.005833)^360 ÷ ((1.005833)^360 1) = $2,529/mo
monthly PMI = $380,000 × 0.007 ÷ 12 = $222/mo
total monthly = $2,529 + $222 = $2,751/mo
PMI drop-off: when balance reaches $320,000 (80% of $400k)
That occurs at approximately month 110 (~year 9.2)
After month 110: total monthly drops to $2,529/mo
$222/mo PMI, drops at year 9
PMI adds $222 a month for roughly 9 years — about $23,800 total. A 10% down payment instead of 5% would cut the PMI period nearly in half and the total PMI cost by more than $10,000.
Quick reference

Total monthly payment and PMI drop-off by purchase price and down payment

The table shows total monthly payment (P&I + PMI) and the approximate month PMI ends for $300k, $400k, and $500k homes at three down payment levels — all at 7% rate, 0.7% annual PMI, 30-year fixed.

Home price / DownP&IPMI/moTotal/moPMI ends (mo)
$300k / 5% down$1,897$167$2,064~mo 110
$300k / 10% down$1,796$158$1,954~mo 55
$300k / 15% down$1,696$148$1,844~mo 27
$400k / 5% down$2,529$222$2,751~mo 110
$400k / 10% down$2,394$210$2,604~mo 55
$400k / 15% down$2,260$197$2,457~mo 27
$500k / 5% down$3,161$278$3,439~mo 110
$500k / 10% down$2,993$263$3,256~mo 55
$500k / 15% down$2,824$246$3,070~mo 27

Source: HPA 1998; Fannie Mae PMI guidelines. 7% rate, 0.7% annual PMI, 30-year fixed. PMI drop-off month approximated from amortization schedule. Actual month depends on property appreciation and lender procedures.

Practical tips

Tips for managing and removing PMI

PMI is not permanent. Several routes exist to eliminate it sooner than the standard amortization schedule predicts. Here is how to minimize the cost and accelerate the exit.

  • Request PMI cancellation at 80% LTV — don't wait — under the Homeowners Protection Act, lenders must automatically cancel PMI when your balance reaches 78% of the original purchase price. But you can request cancellation one step earlier at 80% LTV. Submit a written request; lenders don't proactively remind you.
  • Use home appreciation to your advantage — if your home's value has risen, your LTV may already be at or near 80% even though the loan balance hasn't fallen that far. Order a formal appraisal (typically $400–$700) and present it to your servicer to support early cancellation.
  • Extra payments shorten the PMI period — every dollar of extra principal payment moves the drop-off month earlier. Even $100 extra per month can cut the PMI period by 12–18 months on a typical loan.
  • Lender-paid PMI (LPMI) trades a higher rate for no monthly PMI — some lenders offer to absorb PMI in exchange for a rate 0.25%–0.75% higher. This lowers your monthly payment but is permanent — you cannot cancel LPMI as you build equity.
  • A piggyback loan (80/10/10) avoids PMI entirely — borrow 80% as a first mortgage, 10% as a HELOC or second mortgage, and put 10% down. No PMI required. The second mortgage rate is higher, but the combined payment may beat PMI-included totals for high-credit borrowers.
Accuracy & limits

Accuracy and limitations

PMI drop-off months are calculated from the standard amortization schedule assuming no extra payments and no change in home value. In practice, if your home appreciates, you may be eligible for earlier PMI cancellation via appraisal — the calculator cannot model future appreciation. PMI rates vary by lender, insurer, credit score, and LTV tier; the rate you enter should come from your Loan Estimate. The calculator models borrower-paid PMI only — lender-paid PMI and FHA MIP have different structures and cancellation rules.

Not financial advice — consult a mortgage professional for your specific situation.

Glossary

PMI mortgage terms defined

Insurance that protects the lender — not the borrower — if you default on the loan. Required on conventional loans when the down payment is less than 20%. Added to the monthly payment.
The loan balance divided by the home's value, expressed as a percentage. PMI is required when LTV exceeds 80% at origination. It cancels when LTV falls to 80% (or automatically at 78%).
The 1998 federal law requiring automatic PMI cancellation when loan balance reaches 78% of the original purchase price, and allowing borrower-requested cancellation at 80% LTV.
FHA's version of PMI. Paid as an upfront premium plus an annual charge. Unlike conventional PMI, FHA MIP on loans with less than 10% down remains for the life of the loan.
An arrangement where the lender pays the PMI premium in exchange for a slightly higher interest rate. Eliminates the monthly PMI line item but cannot be cancelled as equity builds.
A structure using a first mortgage at 80% LTV and a second mortgage (HELOC or fixed) at 10% LTV, with a 10% down payment. Eliminates PMI while keeping the first mortgage below 80% LTV.
About

About this mortgage with PMI calculator

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Questions

Frequently asked questions about the free mortgage with pmi calculator

A mortgage with PMI calculator is a free online tool that helps you mortgage calculator with private mortgage insurance for down payments < 20%. PMI is added monthly when down < 20% of home price. Typical PMI: 0.3-1.5% of loan per year. It runs entirely in your browser with instant results and no sign-up.
No — actual loan terms depend on credit, income docs, and lender underwriting. Use this for planning and what-if scenarios; get a real Loan Estimate before making decisions.
When the calculator asks for them. PITI calculations include property tax, insurance, and PMI; raw P&I calculations don't.
Lenders round payment amounts and may include escrow buffers. Property tax and insurance change over time. Real payments vary 1-5% from these estimates.

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