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Down Payment vs PMI Calculator

Compare 20% down (no PMI) with a smaller down payment plus PMI on the same property. See monthly payment, total PMI paid until cancellation, and the cash freed up by the smaller down payment.

Property price

Smaller down payment

PMI annual rate

Rate

Term (years)

Months until PMI cancels

Extra cash for 20% down

$45,000

vs 10% down

Monthly with smaller down + PMI

$2,880

PMI portion: $186

Monthly with 20% down

$2,395

$485/mo less

Total PMI paid until cancel

$15,593

84 months

How to think about it

Bigger down payment = lower payment forever. PMI cancels eventually but the smaller loan stays smaller for the full term. The trade-off: the $45,000 you'd put down differently is no longer available for emergencies, investments, or other goals.

A practical rule: take the smaller down payment if your alternative use of the cash earns more than the after-tax cost of the mortgage and PMI combined. Take the bigger down payment if you're rate-sensitive, near the affordability ceiling, or just want lower fixed costs.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Down Payment vs PMI Calculator is built to give a quick, browser-based estimate for down payment vs pmi. Compare 20% down (no PMI) with a smaller down payment plus PMI on the same property. See monthly payment, total PMI paid until cancellation, and the cash freed up by the smaller down payment. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the down payment vs pmi result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this down payment vs pmi estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter the property price.
Enter the smaller down payment percent you're considering (e.g., 5%, 10%).
Enter the PMI annual rate quoted to you.
Enter rate, term, and the months until you expect PMI to cancel (commonly 60–120 based on amortization or value increase).
Compare monthly payments and decide whether the cash freed up justifies paying PMI.

Frequently Asked Questions

When does PMI come off?

Federal law requires automatic PMI termination at 78% LTV based on the original amortization schedule. You can request cancellation at 80% based on either original or current value. Some loans (FHA MIP) require it for the life of the loan.

How much does PMI cost monthly?

Typically 0.30–1.50% of the loan annually, divided by 12. On a $400k loan at 0.55%, that's about $183/month until cancellation. Higher LTV and lower credit score push the rate up.

Does putting 20% down always save money?

On a payment-only basis, yes — no PMI plus a smaller loan. But the larger down payment ties up cash that could have been invested or held as reserves. The right choice depends on your alternative use for that cash.

What about lender-paid PMI?

Some lenders offer LPMI: they pay PMI in exchange for a slightly higher rate (often 0.25–0.50%). LPMI doesn't cancel — it stays for the life of the loan via the higher rate. Run the numbers carefully if you'll refinance soon.