Mortgage PMI Removal Calculator

Find when your private mortgage insurance can be removed — the month your loan reaches 80% LTV (request) and 78% LTV (automatic termination).

Result

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How to use this calculator

Enter the original home value and your starting loan amount.
Enter the interest rate and loan term.
Read the month PMI auto-terminates (78% LTV) and when you can request removal (80%).
Consider extra payments or a new appraisal to remove PMI sooner.

About this calculator

Private mortgage insurance (PMI) is usually required when you put down less than 20% on a home, but it does not last forever. Under the federal Homeowners Protection Act, your lender must automatically terminate PMI once your loan balance reaches 78% of the home’s original value (on the scheduled amortization), and you have the right to request cancellation once you hit 80% loan-to-value (LTV). This calculator amortizes your mortgage and pinpoints the month each threshold is reached, so you know when to ask your servicer to drop PMI (the 80% request) and when it falls off automatically (78%). Note the law uses the original value, so simply paying down the scheduled balance gets you there — though extra principal payments, or a new appraisal showing the home has appreciated, can let you cancel even sooner.

How it works — the formula

Starting LTV = Loan ÷ Original value
Amortize monthly; find first month balance ≤ 80% and ≤ 78% of original value
Request at 80%, automatic at 78%

The scheduled balance is tracked down each month; the law keys cancellation to fixed LTV thresholds of the original value.

Source: CFPB — When can I remove PMI?

Worked examples

Example 1

$300k value, $270k loan, 6%, 30 yr

Inputs:: homeValue=300000, loan=270000, rate=6, term=30
Output:: 80% at month 89, 78% at month 103

Example 2

$400k value, $380k loan, 7%, 30 yr

Inputs:: homeValue=400000, loan=380000, rate=7, term=30
Output:: later removal (higher start LTV)

Example 3

$300k value, $240k loan (80%)

Inputs:: homeValue=300000, loan=240000, rate=6, term=30
Output:: No PMI (starts at 80%)

Limitations

Uses scheduled amortization vs original value, per the HPA.
Extra payments or appreciation-based cancellation handled separately.
FHA MIP follows different rules and is not modeled.

Estimate per the Homeowners Protection Act; confirm with your servicer.

Frequently asked

When does PMI automatically come off?+

By law, your lender must terminate PMI when your mortgage balance reaches 78% of the home’s original value, based on the original amortization schedule, provided you are current on payments. This calculator finds that month for your loan.

What is the difference between the 80% and 78% thresholds?+

At 80% LTV you have the right to request PMI cancellation in writing. At 78% LTV the servicer must cancel it automatically without you asking. The 80% request comes a few months earlier, so it can save you money if you act on it.

Does the value used the original or current home value?+

For automatic and requested cancellation under the Homeowners Protection Act, lenders use the original value (purchase price or original appraisal). To cancel based on a higher current value from appreciation, you typically need to pay for a new appraisal and meet the servicer’s seasoning rules.

Can I remove PMI faster?+

Yes. Making extra principal payments reaches the 80%/78% balance sooner. Alternatively, if your home has appreciated, a new appraisal may show you already have enough equity — many servicers allow cancellation at 80% LTV based on current value after a couple of years.

Do all loans have PMI?+

No. PMI applies to conventional loans with less than 20% down. FHA loans have a different, often longer-lasting mortgage insurance premium (MIP), and loans starting at 80% LTV or below generally have no PMI at all.

Does PMI removal lower my payment?+

Yes. PMI is an extra monthly charge on top of principal, interest, taxes, and insurance. Once it is removed, your total monthly payment drops by the PMI amount — often $30 to $150+ per $100,000 borrowed.