Mortgage PMI Cancellation Calculator
Save hundreds monthly by knowing exactly when you qualify to remove Private Mortgage Insurance in 2026.
Last updated: April 2026
What is PMI and how to remove it?
Private Mortgage Insurance (PMI) is usually required by lenders when you put down less than 20% on a home purchase. It protects the lender, not you, in case of default.
The Homeowners Protection Act (HPA) gives you the right to cancel PMI once you reach certain Loan-to-Value (LTV) milestones.
80% LTV: You can request cancellation. The lender must approve if you have a good payment history and the home hasn't decreased in value.
78% LTV: Automatic termination. The lender must stop the insurance automatically on the date your balance is first scheduled to reach 78% of the original value.
How to use this calculator
- 1Original Value — Input the purchase price or the value at the time of the last appraisal.
- 2Current Balance — Check your latest mortgage statement for the remaining principal balance.
- 3Review LTV % — Watch the LTV meter. Once it drops below 80, you gain the right to request removal.
Formula & example
LTV % = (Current Loan Balance / Original Home Value) × 100
If your home was $500,000 and your balance is $390,000, your LTV is 78%. At this point, your lender must automatically cancel your PMI.
Benefits
Monthly Savings
PMI typically costs 0.5% to 1.5% of the loan amount annually. Removing it puts money back in your pocket.
Strategic Paydown
Use this tool to see if a small lump-sum payment could trigger cancellation and save you more in the long run.
Avoid Overpaying
Don't rely on the lender to tell you when you're eligible; take charge of your mortgage.
Use cases
Refinance Comparison
Decide if refinancing to remove PMI is worth the closing costs.
Home Appreciation
Track if rising market values in your area mean you can request a new appraisal to drop PMI early.
Frequently asked questions
Does this apply to FHA loans?+
No. FHA Mortgage Insurance Premium (MIP) has different rules. For many FHA loans with <10% down, MIP stays for the life of the loan.
Will the lender automatically cancel at 80%?+
No. At 80% you must request it in writing. They only have to do it automatically at 78%.