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PMI Calculator

Private mortgage insurance protects the lender, not you, and it is required on conventional loans whenever the down payment is under 20%. What almost no calculator tells you is when it stops. Federal law sets two thresholds and the difference between them is real money — this page computes both dates for your loan and explains the request that most borrowers never make.

How to use this calculator

  • - PMI applies to conventional loans with less than 20% down. FHA MIP works differently.
  • - Both thresholds are measured against the original value, not today's.
  • - Extra principal reaches 80% sooner, which is the cheapest way to end PMI early.

Your loan

Conventional loans only — FHA MIP works differently.

Purchase

PMI applies below 20%.

Loan

Paying extra reaches 80% sooner, which is the cheapest way to end PMI early.

You can request cancellation after

7 yr 11 mo

When the balance reaches 80% of the original price

Automatic cancellationAt 78% LTV the servicer must cancel without being asked9 yr 1 mo
PMI you will actually pay$19,620
If it never cancelledWhat a calculator that ignores termination would tell you$64,800
Saved by cancelling$45,180

Ask — do not wait

The 80% threshold requires a written request and a current payment history; the 78% threshold is the servicer's obligation. The gap between the two is money most borrowers pay simply for not asking.

The two cancellation thresholds

The Homeowners Protection Act gives conventional borrowers two separate rights, both measured against the original value of the property — the lesser of purchase price and original appraised value — not against what the home is worth today.

  • 80% — you may request cancellation: Once the scheduled balance reaches 80% of original value, you can ask in writing for PMI to be removed. The servicer must comply if your payment history is current, there are no junior liens, and the property has not declined in value. This right requires you to act; nothing happens automatically.
  • 78% — the servicer must cancel: At 78% of original value, cancellation is automatic and unconditional as long as payments are current. No request, no appraisal, no discretion. The gap between 80% and 78% is typically two to three years of premiums that a borrower who asked would not have paid.

Cancelling early on appreciation

The statutory thresholds use original value, but most servicers will also cancel based on current value once you have held the loan long enough — commonly 25% equity after two years, or 20% after five, both established by a new appraisal you pay for. In a market that has moved substantially, this route can end PMI years before the amortization schedule would.

Two things to check before ordering an appraisal. First, ask the servicer for its specific seasoning requirements and equity thresholds in writing, because they vary and an appraisal ordered against the wrong standard is wasted money. Second, confirm which appraiser they will accept — an appraisal you commission independently is usually not sufficient.

PMI is not the only option, and not always the worst one

  • Lender-paid PMI: The lender pays the premium in exchange for a permanently higher interest rate. There is no monthly PMI line, which looks attractive, but the higher rate never cancels — so this only wins if you would have carried PMI for most of the loan anyway.
  • A piggyback second mortgage: An 80/10/10 structure avoids PMI entirely with a small second loan covering the gap. The second loan usually carries a higher rate and often a variable one, so compare total cost rather than assuming the absence of PMI is a saving.
  • Waiting to save 20%: Sometimes right, often not. Against a rising market, the price increase while you save can exceed the PMI you avoided. Model both rather than treating 20% down as automatically correct.

Frequently asked questions

When does PMI go away?

You may request cancellation when the balance reaches 80% of the home's original value, and the servicer must cancel automatically at 78%, provided payments are current. On a 30-year loan at 10% down that is typically around year nine for the automatic threshold — the calculator above gives the exact months for your figures.

How much does PMI cost?

Typically between 0.3% and 1.5% of the original loan amount per year, depending on credit score and down payment. On a $300,000 loan that is roughly $75 to $375 a month. The strongest credit scores at 15% down land near the bottom of that range; a low score at 3% down lands near the top.

Can I remove PMI without refinancing?

Yes, and refinancing purely to remove PMI is usually the expensive way to do it. Request cancellation at 80% of original value, or ask your servicer about cancellation based on a current appraisal if your home has appreciated. Refinancing makes sense when the rate also improves — otherwise you are paying closing costs to remove a charge that would have ended on its own.

Is FHA mortgage insurance the same as PMI?

No, and the difference matters enormously. FHA charges MIP, which on loans with less than 10% down lasts for the entire term regardless of how much equity you build. There is no cancellation right at 80% or 78%. Escaping FHA MIP requires refinancing into a conventional loan, which is why borrowers who can qualify conventionally often should.

Reference sources

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For developers

This calculation is also available as a REST API and through an MCP server, both running the same engine as this page — so the figures match by construction rather than by convention. No key required.