Mortgages
PMI Removal Calculator
PMI protects the lender, not you, and it disappears once you owe little enough against the home. Federal rules cancel it automatically at 78% loan-to-value, and you can request removal at 80%. This works out when you get there.
Tested against worked examplesHow we verify
Use the original purchase price for the automatic cancellation date; a current appraisal may qualify you sooner.
PMI drops off in: 11 years 3 months
PMI drops off in
11 years 3 months
Based on your current payment, with no extra principal.
Paying extra principal moves this date closer, and PMI stops costing you the moment it is removed — one of the few guaranteed returns in a mortgage.
- Loan-to-value today
- 95%
- Balance needed
- $312,000
- PMI still to pay
- $20,250
Compare scenariosTry three values of one input
| Home value | |||
|---|---|---|---|
| PMI drops off in | 14 years 7 months | 11 years 3 months−3 years 4 months | 7 years 1 month−7 years 6 months |
| Loan-to-value today | 105.56% | 95%−10.56% | 86.36%−19.19% |
| Balance needed | $280,800 | $312,000+$31,200 | $343,200+$62,400 |
| PMI still to pay | $26,250 | $20,250−$6,000 | $12,750−$13,500 |
Every other input stays at the value you set above — currently $400,000 for home value. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
The loan is amortised month by month at your rate: interest on the balance, the rest of your payment to principal. We stop at the first month the balance falls to or below the threshold percentage of the home value, then multiply those months by your monthly PMI.
This assumes a fixed rate, no extra principal, and the value you enter. Cancellation also requires being current on payments, and some loans have seasoning requirements — your servicer's written policy is the authority.
What this assumes
- Conventional PMI rules: cancellable on request at 80% of the original value, removed automatically at 78%, provided payments are current.
- The threshold is measured against the original purchase price, not today's value — appreciation alone may require a new appraisal.
- FHA loans work differently and are not modelled: with less than 10% down the insurance lasts the life of the loan.
What changes this number
- Extra principal payments
- The only lever that reaches the threshold sooner without an appraisal.
- Original purchase price
- The reference for the automatic threshold, which is why a rising market does not cancel PMI on its own.
- PMI rate
- Scaled to credit score and down payment, so improving credit before buying reduces both the rate and its duration.
A worked example
Take the 95% ltv at 6.5% scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Home value
- $400,000
- Current loan balance
- $380,000
- Interest rate
- 6.5%
- Monthly principal & interest
- $2,402
What it returns
- PMI drops off in
- 11 years 3 months
- Loan-to-value today
- 95%
- Balance needed
- $312,000
- PMI still to pay
- $20,250
Paying extra principal moves this date closer, and PMI stops costing you the moment it is removed — one of the few guaranteed returns in a mortgage.
Try an example
Frequently asked questions
When does PMI automatically go away?
Under the federal Homeowners Protection Act, your servicer must cancel PMI automatically once the balance reaches 78% of the home's original value, provided you are current on payments. You can request cancellation in writing at 80%. Neither happens by itself if you never ask and never reach the threshold.
Can a higher home value remove PMI faster?
Sometimes. Automatic cancellation uses the original purchase price, but many servicers will consider a new appraisal showing the loan is now under 80% of current value — useful after renovations or a strong market. You pay for the appraisal, and each lender sets its own seasoning rules.
Does PMI removal apply to FHA loans?
No, and this is a costly surprise. FHA mortgage insurance usually lasts the life of the loan when you put less than 10% down, no matter how much equity you build. Escaping it generally means refinancing into a conventional loan once you have 20% equity.
How much is PMI actually costing me?
Typically 0.3% to 1.5% of the loan a year, which on a $380,000 balance is roughly $95 to $475 a month. Because it buys you nothing, the total shown above is the clearest argument for paying down principal early or refinancing once the market allows.
Related calculators
Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, PMI and HOA — plus total interest and a full amortization breakdown. Free, fast, no signup.
Home Equity Calculator
Calculate your home equity and how much you could borrow with a HELOC or home equity loan, based on your lender's combined loan-to-value limit.
Mortgage Payoff Calculator
See how much faster you'd pay off your mortgage — and how much interest you'd save — by adding a little extra to your payment each month.
Mortgage Refinance Calculator
Should you refinance? Compare payments, find your break-even month on closing costs, and see the honest lifetime cost — including the term-reset trap.
Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.