Tool · Investor Sam Home

PMI Removal Timeline Calculator

June 30, 2026 • By the Investor Sam Editorial Team • Reviewed by Berly Sam Varghese, Editor
Private mortgage insurance protects your lender, not you, and it can add a meaningful sum to every payment until you build enough equity. Federal rules let you request cancellation once your balance reaches 80% of the original value, and require automatic termination at 78%. This calculator projects your amortization forward — optionally including home appreciation — to estimate both dates, and totals the PMI you will pay until you can drop it. Knowing the target keeps you from paying PMI a single month longer than required.

Example: Original home value: 350000 $ · Original loan amount: 322000 $ · Interest rate (APR): 6.5 % · Loan term: 30 years · Annual PMI rate: 0.6 % · Home appreciation rate: 0 % · Count appreciation toward 80%?: 0

Months to request removal (80%)107
Months to automatic removal (78%)120
PMI paid until you can request$17,227

Worked example

You buy a $350,000 home with a $322,000 loan — about 92% loan-to-value — at 6.5% over 30 years. Your payment slowly chips at principal, reaching the 80% threshold ($280,000 balance) at which you can request removal after roughly 60 months, and the automatic 78% cutoff ($273,000) a few months later. At a 0.6% PMI rate that is about $161 a month, so you pay close to $9,700 in PMI before you are eligible to request cancellation — money worth pursuing the moment you qualify.

Frequently asked questions

What is the difference between 80% and 78% LTV?

At 80% loan-to-value of the original value you may request that PMI be canceled, provided you are current and meet the servicer's conditions. At 78% the lender must cancel it automatically. Requesting at 80% gets you off PMI sooner.

Can rising home value get me out of PMI faster?

Sometimes. If your home appreciates, a new appraisal may show you have reached 80% equity based on current value, letting you request removal earlier. Turn on the appreciation option here to model that path.

How do I actually cancel PMI?

Submit a written request to your servicer once you hit 80%, be current on payments, and have no second liens; the servicer may require an appraisal. Do not assume it drops automatically until 78% — request it as soon as you qualify.

Does making extra payments remove PMI sooner?

Yes. Extra principal payments lower your balance faster, so you reach the 80% and 78% thresholds earlier. Pair this tool with an extra-payment plan to accelerate cancellation.

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Sources

Berly Sam Varghese · Editor, Investor Sam

Berly Sam Varghese is an engineer who treats money the way he treats any hard problem — something to be engineered, not gambled on. He funded years of education and built real financial stability the patient way, by living below his means and investing rather than borrowing. He writes for the person trying to make a home a sound decision, not just a purchase. He reviews and approves every article on Investor Sam and checks the figures against primary sources before anything is published. More about our standards.