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PMI Calculator

Calculate private mortgage insurance cost and check LTV against the 80%/78% PMI thresholds.

Introduction

PMI Calculator — Calculate private mortgage insurance cost and check LTV against the 80%/78% PMI thresholds. Enter Loan amount, Appraised value, PMI rate (%) to get an instant, accurate result.

Formula

LTV = loan amount / appraised value × 100. Annual PMI = loan amount × PMI rate% / 100 (default 0.75%, typical adjustable range roughly 0.5%–1.5% depending on credit and LTV). Monthly PMI = annual PMI / 12. PMI is generally required once LTV exceeds 80%, and under the Homeowners Protection Act it must automatically terminate at 78% LTV of the original value.

Step-by-step

  1. Enter the Loan amount.
  2. Enter the Appraised value.
  3. Enter the PMI rate (%).
  4. Click Calculate to see your result instantly.

Real-world example

Example: With Loan amount = 180000, Appraised value = 200000, PMI rate (%) = 0.75, the PMI Calculator gives Ltv Pct: 90, Annual Pmi: 1350, Monthly Pmi: 112.5.

Frequently Asked Questions

When does PMI go away?
By federal law (the Homeowners Protection Act), PMI must automatically terminate once your loan balance reaches 78% of the home's original value, assuming payments are current; you can also request cancellation earlier once you reach 80%.
Why does my PMI rate differ from the default 0.75% used here?
Actual PMI rates are set by mortgage insurers based on your credit score, down payment, and loan type — 0.75% is just a commonly cited midpoint, not a fixed rate.
Can I avoid PMI entirely?
Yes, typically by putting down at least 20% (LTV of 80% or less), using a piggyback second loan, or choosing a loan program that doesn't require it.
What inputs does the PMI Calculator need?
You'll need to provide: Loan amount, Appraised value, PMI rate (%). All fields use sensible defaults, so you can see a working example immediately and then adjust the values to match your own numbers.
How accurate is the PMI Calculator?
The PMI Calculator applies the formula exactly as calculated — LTV = loan amount / appraised value × 100. Annual PMI = loan amount × PMI rate% / 100 (default 0.75%, typical adjustable range roughly 0.5%–1.5% depending on credit and LTV). Monthly PMI = annual PMI / 12. PMI is generally required once LTV exceeds 80%, and under the Homeowners Protection Act it must automatically terminate at 78% LTV of the original value. — so results are precise for the inputs you provide. Accuracy depends on entering correct, realistic input values.
Is the PMI Calculator free to use?
Yes, the PMI Calculator is completely free, requires no signup, and runs instantly in your browser.

About the PMI Calculator

The PMI Calculator uses a real, verifiable formula — LTV = loan amount / appraised value × 100. Annual PMI = loan amount × PMI rate% / 100 (default 0.75%, typical adjustable range roughly 0.5%–1.5% depending on credit and LTV). Monthly PMI = annual PMI / 12. PMI is generally required once LTV exceeds 80%, and under the Homeowners Protection Act it must automatically terminate at 78% LTV of the original value. — so results are accurate every time, not an approximation.