PMI Removal Calculator

This PMI removal calculator shows the two dates that matter most for private mortgage insurance (PMI) on a conventional loan. The first is when your balance reaches 80% of your home’s original value, the point where you can ask to cancel. The second is when it reaches 78%, when PMI must end on its own if you are current.

How do you use this calculator?

Enter the numbers from your closing documents, not today’s statement. The tool rebuilds your payment schedule from day one, month by month, so it needs the original loan amount, rate, term and first payment month. Then add any extra principal you pay to see how much sooner you reach 80%.

A few tips on each input:

• Original home value. Use the lower of your purchase price or the appraised value at purchase. If you refinanced, use the appraised value from the refinance.
• Original loan amount. Use the amount on your note at closing. Today’s balance would throw the schedule off.
• First payment month. This is usually the first or second month after closing. Your Closing Disclosure shows it.
• Extra principal. Enter only money that goes to principal, not to escrow.

How is the PMI date calculated?

The calculator builds a standard amortization schedule and finds the first month your balance falls to 80% and then 78% of original value. Each month, interest is the balance times the monthly rate, and the rest of your payment, plus any extra, reduces principal.

The monthly principal-and-interest payment uses the standard formula:

M = P × r(1 + r)^n / ((1 + r)^n − 1)

Here P is the loan amount, r is the annual rate divided by 12, and n is the number of monthly payments. The targets are simple:

• 80% target = original value × 0.80
• 78% target = original value × 0.78
• Starting loan-to-value = loan amount ÷ original value

The calculator does not include taxes, insurance or escrow, since those do not reduce your balance. It assumes every payment is made on time and in full.

Worked example

Down payment and loan term change the picture a lot. Here is the same $400,000 home at the same example rate.

What does your result mean?

Your 80% date is the earliest month you can ask your servicer to cancel PMI based on original value. Your 78% date, read with no extra payments, is when PMI should end automatically. Your servicer must grant an 80% request if you meet the legal conditions.

The Consumer Financial Protection Bureau (CFPB) says your servicer “is legally required to grant your request” when you ask in writing, have a good payment history, are current, certify there are no junior liens, and show the home’s value has not dropped below original value (CFPB). These rules cover single-family primary homes with loans closed on or after July 29, 1999.

Several rules can change your answer:

• Payment history. Fannie Mae requires no payment 30+ days late in the last 12 months and none 60+ days late in the last 24 months (Fannie Mae Servicing Guide).
• Current value. Fannie Mae also lets owners of a one-unit primary home or second home cancel based on current value: 75% LTV or less after two to five years, or 80% or less after five years, with a new valuation.
• Property type. For investment properties and two- to four-unit homes, Fannie Mae’s request threshold is 70%.
• Midpoint. PMI must end the month after your loan’s midpoint even if 78% has not been reached.
• Lender-paid insurance. If the lender paid for mortgage insurance through a higher rate, the CFPB says different rules apply.

For a full walk-through of every path, read when you can remove PMI. If you have not bought yet, see how much down payment you need to weigh PMI against a bigger down payment.

Is this calculator right for FHA loans?

No. FHA loans carry mortgage insurance premiums set by HUD, not PMI. Under HUD’s current rates, FHA loans with 10% or more down pay annual MIP for 11 years, and most with less down pay it for the life of the loan. The 80% and 78% PMI rules do not apply.

HUD’s Mortgagee Letter 2023-05 sets those durations (HUD). Use the FHA MIP calculator for an FHA loan, and the FHA vs conventional calculator to compare the two before you buy.

Common mistakes

Most errors come from using today’s numbers instead of the original ones, or from assuming PMI drops off without a request. Check these before you rely on your dates.

• Entering today’s balance instead of the original loan amount.
• Using today’s market value instead of original value.
• Waiting for the automatic 78% date instead of asking at 80%.
• Forgetting that a second mortgage or HELOC can block a request.
• Counting extra payments that went to escrow rather than principal.
• Assuming the dates apply to an FHA or VA loan.