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.
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
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
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.
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.
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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.