Mortgage Calculator Without PMI (Calculating Your Payment with 20% Equity)

Reaching the point where you can use a mortgage calculator without PMI is a major financial milestone. Private Mortgage Insurance (PMI) is a monthly fee required for buyers who put down less than 20%, but once you have enough equity, that fee disappears. Removing PMI can instantly lower your monthly housing cost by $100 to $300 or more.

In this guide, we will explore how to calculate your new “clean” payment, the steps required to prove to your lender that you have 20% equity, and how to use our tools to plan for a PMI-free future in 2026. Understanding the impact of this insurance is a vital part of learning how mortgage payments are calculated.

How the 20% Rule Works

The “Magic Number” in the mortgage world is 20%. If you pay 20% of the home’s value upfront as a down payment, you never have to pay PMI. If you start with a smaller down payment, you must continue paying PMI until your loan balance reaches 80% of the original home value.

Using a mortgage calculator without PMI helps you see the “reward” at the end of the tunnel. It shows you exactly how much your cash flow will improve once that insurance requirement is dropped. This is why many homeowners use our Home Page Calculator to see how much faster they can reach that 20% mark by learning how extra payments reduce interest.

Quick Tip: Don’t wait for the bank to notice you hit 20% equity. While they are legally required to cancel it at 78%, you can often request cancellation as soon as you hit 80%, saving you months of extra fees.

Takeaway: Eliminating PMI is the easiest “raise” you can give yourself; it lowers your monthly bill without requiring you to refinance your interest rate.

Side-by-Side: With PMI vs. Without PMI

To see the true impact, let’s look at a $400,000 home with a 6.5% interest rate. Notice how the monthly breakdown changes when you cross that 20% threshold:

Component	5% Down (With PMI)	20% Down (No PMI)
Loan Amount	$380,000	$320,000
Principal & Interest	$2,401	$2,022
PMI Fee (Estimate)	$253	$0
Total Monthly Savings	—	$632 / month

The savings are twofold: you have a smaller loan balance (which lowers your interest), and you have completely deleted the PMI fee. You can run these scenarios for your own home using our guide on how loan term affects monthly payments.

Takeaway: A 20% down payment doesn’t just lower your debt; it removes a “dead-weight” fee that offers you no financial benefit.

How to Get Rid of PMI in 2026

If you are already a homeowner and want to use a mortgage calculator without PMI to see your potential savings, you have three main paths to get there:

• The Waiting Game: Continue making your standard payments. You can check your amortization schedule to see exactly which month your balance hits 80%.
• Appreciation: In a hot 2026 housing market, your home value may have gone up. If your home is now worth significantly more than when you bought it, you can pay for a new appraisal to prove you have 20% equity.
• Aggressive Paydown: By adding extra principal each month, you accelerate the date that you can stop paying PMI.

To learn more about our tools and how we help homeowners save money, visit our About Us page.

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Ready to see your PMI-free payment? Contact us if you have questions here.