Your inputs

Estimate mortgage insurance

Home value

Appraised value or purchase price, from $1 through $100,000,000.

Loan amount

Current loan balance, from $0 through $100,000,000.

Annual PMI rate

Yearly PMI rate as a percent of the loan, from 0% through 5%. Often 0.3%–1.5%.

Your inputs are calculated locally and are not stored.

Estimated monthly PMI$150.00

At 90.00% loan-to-value, PMI is typically required.

Current LTV: 90.00%
PMI typically required: Yes
Balance for automatic removal: $320,000.00

Lenders generally require PMI when the loan-to-value ratio is above 80%, and must automatically cancel it once the balance reaches 78% of the original home value.

Formula & methodology

How PMI is estimated

Private mortgage insurance is quoted as an annual percentage of the loan amount. The monthly premium is that annual cost divided by 12. The loan-to-value ratio (LTV) is the loan balance divided by the home value. Lenders generally require PMI when LTV is above 80% and, under US federal rules, must automatically cancel it once the balance reaches 78% of the original value — the removal balance shown here.

Monthly PMI = Loan amount × (annual PMI rate ÷ 100) ÷ 12
LTV % = (Loan amount ÷ Home value) × 100
Removal balance = Home value × 0.80

Loan amount: Current mortgage balance
Home value: Appraised value or purchase price
Annual PMI rate: Yearly premium as a percent of the loan

Worked example

$400,000 home, $360,000 loan, 0.5% PMI rate

A $360,000 loan on a $400,000 home is a 90% loan-to-value ratio, so PMI is typically required. At a 0.5% annual rate, the monthly PMI is $150.00. PMI can be requested for removal once the balance reaches 80% of value — $320,000 — and lenders must cancel it automatically at 78%.

This is an educational calculation based only on the values you provide. It does not reflect any specific lender's PMI pricing, and it is not financial advice.

Assumptions

What this calculator assumes

PMI is a flat annual percent of the loan amount, billed monthly.
The removal balance is 80% of the home value; automatic cancellation applies at 78% under US rules.
Actual PMI rates depend on credit score, down payment, and loan type, and can change.
Lender-paid or single-premium PMI structures are not modeled.
Money values are rounded to the nearest cent for display.

Common questions

PMI FAQ

When can I stop paying PMI?

You can usually request PMI cancellation once your balance reaches 80% of the original home value. Under the US Homeowners Protection Act, the servicer must automatically terminate it when the balance is scheduled to reach 78%, provided you are current on payments.

Does a higher home value remove PMI faster?

Rising value can help if you refinance or request cancellation based on a new appraisal, since it lowers your loan-to-value ratio. Automatic termination, however, is based on the original value and your amortization schedule, not current market value.

Primary sources

Sources and review notes

Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.