PMI Calculator
The monthly cost of mortgage insurance at your lender's rate, your loan-to-value, and when the schedule brings it down to 80% and 78% of the home's value.
Result…
How it's calculated
Monthly insurance = loan × yearly insurance rate ÷ 12 Loan-to-value = loan ÷ home value × 100 Each month: balance = balance × (1 + i) − payment, i = yearly rate ÷ 12, until balance ≤ 80% (or 78%) × value
Lenders often ask for mortgage insurance when you borrow a large share of the home's value. This prices it at the yearly rate on your quote and follows the normal repayment schedule to show when the balance falls to 80% and 78% of the original value, points at which some lenders let you cancel it or end it.
Your numbers, step by step
About the PMI calculator
This PMI calculator prices mortgage insurance, the cover many lenders ask for when you borrow a large share of a home's value. Enter the home value, the loan amount, the interest rate, the term and the yearly insurance rate from your lender's quote. It shows the monthly premium, your loan-to-value today, your full monthly payment with the insurance, and the month the normal repayment schedule brings the balance down to 80% and 78% of the original value. Those are points at which some lenders let you cancel the cover or end it automatically. Rules on who needs mortgage insurance, how it is priced and when it stops differ by country and lender, so the rate always comes from your own quote.
How to use it
- Enter the “Home value” your lender used and the “Loan amount”.
- Enter the “Interest rate” and the “Loan term”.
- Enter the “Mortgage insurance rate” from your quote, as a yearly percentage of the loan.
- Read the monthly premium, the loan-to-value and the months until it reaches 80% and 78%.
Worked example
A 360,000 loan on a 400,000 home is a 90% loan-to-value. At an insurance rate of 0.5% a year the premium is 360,000 × 0.5% ÷ 12 = 150 a month. At 6.5% over 30 years the principal and interest is 2,275.44, or 2,425.44 with the insurance. The schedule reaches 80% after payment 95 (7 years 11 months) and 78% after payment 109 (9 years 1 month), by which time 16,350 of insurance has been paid.
Updated
Questions people ask
How do I calculate PMI per month?
Multiply the loan amount by the yearly insurance rate and divide by 12. A 360,000 loan at 0.5% a year costs 150 a month.
What is loan-to-value and why does it matter for PMI?
Loan-to-value is the loan divided by the home's value. Lenders often ask for mortgage insurance when it is high, and some let it end once the balance falls far enough. Check your figure with the loan-to-value calculator.
When can mortgage insurance be removed?
It depends on the country, the lender and the loan. In some places it can be cancelled on request at 80% of the original value and ends automatically at 78%; elsewhere the rules are different or the insurance is paid once upfront.
Can extra payments end PMI sooner?
Often, yes, because they bring the balance down faster than the schedule. This calculator follows the regular schedule, so model overpayments with the mortgage payoff calculator and compare the balance to 80% of the value.
Is this the exact premium my lender will charge?
Only if the rate you enter is the one on your quote and it is charged on the original loan. Some insurers price it differently or charge it upfront. Confirm the terms with your lender or a mortgage adviser.