PMI Removal Timeline Calculator
Find the month your loan hits 80% loan-to-value and private mortgage insurance can drop — from scheduled payments alone.
How it works
80% target = original value × 0.80 · Amortize the balance each month (interest = balance × r) until it reaches the target · Automatic termination at 78% LTV
Private mortgage insurance protects the lender when your down payment is under 20%. Under the federal Homeowners Protection Act you can request cancellation once the balance reaches 80% of the original value, and the servicer must drop it automatically at 78%. This tool walks the amortization schedule to find those months — extra principal payments or a higher appraised value can get you there faster.
Worked example
On a $400,000 home with a $370,000 balance at 6.5% paying $2,340/mo, 80% of value is $320,000. It takes roughly 6–7 years of scheduled payments to grind the balance down to that mark, after which cancelling PMI saves $180/mo — over $2,000 a year.
Frequently asked questions
When can I cancel PMI?
You can request cancellation when your balance reaches 80% of the home's original value, and it must be removed automatically at 78%, provided you are current on payments. A new appraisal showing higher value or improvements may qualify you sooner.
Does the lender use the current or original home value?
For automatic and borrower-requested removal based on the payment schedule, lenders use the original value. To use a higher current value you generally need to pay for a new appraisal and meet the lender's seasoning rules.
Does FHA mortgage insurance work the same way?
No. FHA MIP rules differ from conventional PMI and, for many FHA loans, mortgage insurance lasts the life of the loan unless you refinance. This calculator models conventional PMI.
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Educational estimate, not financial advice. Confirm figures with your lender or a licensed professional.