Home Down Payment vs PMI Break-Even Calculator
Putting less than 20% down on a home usually means paying private mortgage insurance (PMI). Use this calculator to estimate your monthly PMI cost and how many months of payments it will take before your loan balance drops enough to eliminate it.
About this calculator
Find out how long it takes for PMI costs to outweigh the benefit of a smaller down payment, and when you can drop PMI by reaching 20% equity.
Frequently Asked Questions
How is PMI calculated?
PMI is typically charged as an annual percentage of your loan balance, divided into monthly payments. As your loan balance decreases, so does the PMI amount if it recalculates, though many lenders keep it fixed based on the original loan amount.
When can I remove PMI?
Most lenders allow PMI removal once your loan balance reaches 80% of the home's original value, either automatically or upon request with a qualifying appraisal.
Does a bigger down payment always beat paying PMI?
Not always — it depends on opportunity cost of the extra cash, but a larger down payment reduces or eliminates PMI and lowers your monthly payment.