PMI Removal Calculator
Find out when your loan-to-value ratio will drop below 80% (or 78% for automatic cancellation) so you can stop paying private mortgage insurance. Use this to plan a timeline or decide whether to make a lump-sum payment to accelerate PMI removal.
Last updated: September 2026
Formula below · 2 sources (CFPB, Wikipedia) · Updated Sep 2026
Compare with similar
About this calculator
Private mortgage insurance (PMI) is required by lenders when a borrower's loan-to-value (LTV) ratio exceeds 80%. Under the Homeowners Protection Act, PMI ends automatically when the balance is scheduled to reach 78% of the home's original value, and you can ask for it to be cancelled once the balance reaches 80% of the original value. This calculator works out your regular principal-and-interest payment from the current balance, rate, and remaining term, then steps through the amortization schedule month by month until balance ≤ threshold × home value. With an appreciation rate of 0% that is exactly the HPA test against the original value. If you enter a positive appreciation rate, the home value grows by that rate each year, which estimates when you could ask your servicer to drop PMI based on a new appraisal; servicers usually require a fresh appraisal and, for Fannie Mae and Freddie Mac loans, an LTV of 75% or less if the loan is 2 to 5 years old (80% after 5 years), so treat that date as optimistic. Extra principal payments are not modeled and would bring the date forward.
How to use
Example: Original home value $350,000, current balance $290,000, interest rate 6.5%, 28 years remaining, automatic removal (78%). With 0% appreciation the HPA target is 0.78 × $350,000 = $273,000. The scheduled payment on $290,000 over 336 months at 6.5% is about $1,876, and the balance falls below $273,000 after 49 months, so PMI would end automatically in about 4 years. Choosing By Request (80%, target $280,000) gives 31 months. With 3% appreciation and a new appraisal, the 78% line moves up each year and is reached after about 17 months — if your servicer accepts appreciation-based removal.
Frequently asked questions
How can I remove PMI from my mortgage faster than the scheduled date?
The fastest way to remove PMI is to make a lump-sum payment directly to your principal, reducing your loan balance below 80% of the home's current appraised value. You can then request a new appraisal and ask your lender to cancel PMI. Home improvements or a rising housing market may have increased your property value, which also lowers your LTV ratio — making an appraisal worthwhile even without extra payments. Some borrowers refinance specifically to eliminate PMI when their equity has grown, though you should run a break-even analysis to ensure refinancing costs are recovered.
What is the difference between automatic PMI cancellation and requesting early PMI removal?
Under the Homeowners Protection Act, automatic PMI cancellation occurs when your loan balance reaches 78% of the original purchase price, as long as you are current on payments — no action is required from you. You can request earlier cancellation when your balance drops to 80% of the original value, but the lender may require a current appraisal and a good payment history. The key distinction is that automatic cancellation uses the original home value, while early removal requests may allow you to use current (appreciated) market value, potentially enabling cancellation much sooner. Contact your servicer directly to understand their specific requirements.
How much money can I save by removing PMI earlier on my mortgage?
PMI typically costs between 0.2% and 1.5% of the original loan amount per year, or roughly $80–$200 per month on a $200,000 loan. Over several years, this adds up to thousands of dollars in non-equity-building expenses. For example, paying $150/month in PMI for 36 extra months costs $5,400. Making a strategic lump-sum principal payment to eliminate PMI sooner can provide an immediate, guaranteed return equivalent to that monthly savings rate. Because PMI protects the lender rather than the borrower, eliminating it as early as possible is almost always financially advantageous.