Finance · Mortgage
PMI Drop-Off Calculator
Estimate when private mortgage insurance can be removed and how much you'll pay.
Last reviewed: February 18, 2026
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What this calculator does
Estimate when private mortgage insurance can be removed and how much you'll pay.
How it's calculated
- Inputs are validated before running the calculator-specific compute() function.
- Core math is deterministic and implemented in src/lib/calculators/pmi-drop-off.ts.
- Results are recalculated instantly as values change and are shareable via query parameters.
- Disclosure assumptions and limitations are shown on-page for decision context.
Example
Example scenario: Home price = 500000 USD; Down payment = 50000 USD; Interest rate = 6.5 %; Loan term = 30 years. Sample output: Monthly PMI cost: $187.50
Common mistakes
- Using optimistic rates or appreciation assumptions without testing a conservative case.
- Ignoring taxes, insurance, HOA, or maintenance in monthly cost planning.
- Treating modeled outputs as guaranteed quotes rather than planning estimates.
- Not comparing at least two scenarios before making a financing decision.
- Skipping professional review for legal, tax, underwriting, or insurance details.
FAQs
Is PMI removed exactly at 80% LTV?
In many cases 80% is a request threshold, while automatic termination can occur later. Exact policy depends on servicer and loan program.
Why does this calculator use monthly simulation?
PMI timing depends on balance progression over time. Month-by-month amortization gives a more practical estimate.
Does this include home appreciation for PMI removal?
No. This baseline uses original home value assumptions and amortization. Appreciation-based cancellation depends on servicer requirements.
How is monthly PMI estimated?
Monthly PMI is estimated as annual PMI rate times original loan amount divided by 12.
Can extra monthly payments lower PMI costs?
Yes. Extra principal can reduce LTV faster, which may shorten PMI duration and lower total PMI paid.