PMI Removal Calculator
See exactly when you can drop Private Mortgage Insurance. No sign-up, formula shown.
Updated · By Teodor-Cristian Lutoiu
On a standard 30-year conventional mortgage at today's rates, PMI typically drops off around year 9–12 for a 10% down payment and year 5–8 for a 15% down payment. You can request cancellation at 80% LTV; your lender must remove it automatically at 78%.
Fill in the four fields to see your PMI removal timeline.
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How PMI removal works
Private Mortgage Insurance is what your lender charges you every month when you put less than 20% down on a home. It protects the lender, not you. The good news: federal law says it eventually has to come off. The better news: you can force it off earlier than that, if you know when to ask.
There are two milestones that matter, both governed by the Homeowners Protection Act (HPA) of 1998 (12 U.S.C. §§ 4901–4910), which the Consumer Financial Protection Bureau enforces for residential mortgages:
- 80% LTV — you can request cancellation. Once your loan-to-value ratio reaches 80% of the home's original purchase price (based on the original amortization schedule), you have the legal right to send your lender a written request to cancel PMI. They have to consider it. They can require you to be current on payments and in some cases may require a new appraisal at your expense.
- 78% LTV — automatic termination, required by law. When your LTV hits 78% of the original purchase price, your lender is legally required to cancel PMI automatically. No request needed. No paperwork from you. They just have to stop charging you.
There's also a midpoint rule: if you somehow haven't reached 78% by the midpoint of the original loan term (e.g., year 15 of a 30-year mortgage), PMI drops off automatically anyway. This almost never comes into play for standard fixed-rate mortgages at current rates.
A detail most calculators gloss over: "original value" means the purchase price of the home, not what it's worth today. If your home appreciated and you want PMI removed based on that, you're outside the strict HPA path — your lender may allow it, but rules vary and usually require a new appraisal at your cost. This calculator uses the strict legal path: LTV computed against the original purchase price.
Formula
The calculation is a standard amortization simulation: take your current balance, subtract one month of principal each month until the balance drops below the two thresholds.
threshold_request = original_home_value × 0.80
threshold_auto = original_home_value × 0.78
for each month m = 1, 2, 3, ...
interest_m = balance × (APR / 12)
balance_m = balance + interest_m − monthly_payment
if balance_m ≤ threshold_request and not yet flagged → months_to_request = m
if balance_m ≤ threshold_auto and not yet flagged → months_to_auto = m
stop once both flagged
The monthly payment is your principal + interest only — not your escrow payment. If your lender's monthly bill is $2,100 and $400 of that is property tax and homeowners insurance, you enter $1,700 here.
Scenarios at a glance
How quickly PMI comes off depends on down payment and rate. All scenarios below assume a $300,000 original home value, 10% down ($270,000 loan), 30-year fixed, no extra payments.
| Rate | Year 5 balance | LTV at year 5 | First year you can request (80%) | First year auto-terminates (78%) |
|---|---|---|---|---|
| 5.0% | ~$247,000 | 82% | Year 7 | Year 9 |
| 6.0% | ~$252,000 | 84% | Year 9 | Year 11 |
| 7.0% | ~$256,000 | 85% | Year 10 | Year 12 |
Bigger down payments compress the timeline — at 15% down, auto-termination typically hits year 5–8 at the same rates.
Worked example
Sarah bought a $300,000 home with 10% down ($30,000). Her loan is $270,000 at 6.5% over 30 years. Her monthly P&I is $1,705.44.
After four years of on-time payments, her remaining balance is approximately $256,743. Plug those numbers in:
- Current balance: $256,743
- Original home value: $300,000
- Interest rate: 6.5%
- Monthly P&I: $1,705.44
What she sees:
- Current LTV: 85.58% (still above both PMI thresholds)
- Request cancellation at 80% LTV: in ~47 months — about four more years
- Automatic termination at 78% LTV: ~69 months — about six more years
The $5,400 she'd save over those extra 24 months is a big deal, and it's the reason Sarah (and you) should track the 80% milestone. As soon as the calculator says "request eligibility in 0 months," put a certified letter in the mail.
If Sarah makes extra principal payments, the dates shift earlier. Run the calculator again after any extra payment to see the new timeline.
FAQ
How do I actually cancel PMI when I reach 80%?
Send your lender a written request asking for cancellation. Call customer service first and ask for the exact address and any forms they use — most lenders have a specific PMI cancellation department. They'll verify you're current on payments, have no junior liens, and may require a recent appraisal (at your expense) if the loan is less than two years old or if they want to confirm the home hasn't depreciated.
What if my home has appreciated and my new LTV is under 80% based on current value?
You're outside the HPA's strict protection, but many lenders allow cancellation based on current value after 2–5 years. You'll need to pay for a new appraisal (usually $400–$600). Call your servicer and ask about their appreciation-based cancellation policy.
Does this work for FHA loans?
No. FHA loans have a different insurance — MIP (Mortgage Insurance Premium) — with different rules. If you put less than 10% down on an FHA loan originated after June 2013, MIP stays for the life of the loan and can only be removed by refinancing. This calculator is for conventional-loan PMI only.
What if I refinance — does that affect PMI removal?
Refinancing creates a brand-new loan, so it resets the PMI clock. If you refi with a new loan that has LTV under 80%, no PMI applies. If the new loan is above 80% LTV, you'll pay PMI on the new loan under its own rules.
Can my lender require a new appraisal before cancelling?
Yes, usually. Lenders can require an appraisal to confirm the home's value hasn't declined. Cost is on you, typically $400–$600. If the appraisal comes back lower than expected, LTV is recomputed against the lower number and you may still need more principal paid down before PMI comes off.
What counts as the "original value"?
For HPA purposes, "original value" is the lesser of (a) the purchase price and (b) the appraised value at the time of origination. For most borrowers, these are the same number. If your appraisal at purchase was lower than the price you paid (because you were in a bidding war and overpaid), the lower number is what PMI tracks against.
Last updated: April 23, 2026