The three exits, ranked by effort
Wait for the automatic 78% date (zero effort, slowest). Request at 80% — a written request with good payment history, typically months earlier. Force it with extra principal or a reappraisal after appreciation — often years earlier in rising markets. The deep mechanics and edge cases are in our PMI guide; the full payment picture (taxes and insurance included) is in the mortgage calculator.
How this calculator works
Monthly PMI is straightforward; the valuable output is the exact cancellation month, which requires the full schedule:
Monthly PMI
PMI = loan amount × annual PMI rate ÷ 12
Auto-cancel month
first month the scheduled balance reaches 78% of the original home value
The 78% automatic date and the 80% request date (Homeowners Protection Act) come from walking the amortization schedule. Add extra payments and the engine re-amortizes to show how much sooner both dates arrive.
Worked example
A $400,000 home with $30,000 down (7.5%), a $370,000 loan at 6.5% over 30 years, with PMI at 0.5%/year.
| Loan-to-value at start | 92.5% |
|---|---|
| Monthly PMI | $154.17 |
| PMI auto-cancels at payment | 124 (about year 11) |
| Total PMI paid if you wait | $18,962 |
PMI costs $154 a month here and, left alone, auto-cancels around payment 124 when the balance reaches 78% of the original value — after nearly $19,000 paid. You can request cancellation earlier at 80% LTV, or force it years sooner with extra principal or a new appraisal after appreciation. PMI is not money wasted, though: it is the price of buying without a full 20%, which in a rising market can beat waiting. See PMI explained.
Frequently asked questions
How much is PMI per month?
PMI rates run roughly 0.3%–1.5% of the loan per year depending on credit score and down payment; 0.5% is a fair mid-range default. On a $360,000 loan that’s $150/month. Enter your quoted rate above for your number.
When does PMI go away?
Automatically when your balance is scheduled to reach 78% of the home’s original value (Homeowners Protection Act), assuming you’re current. You can request cancellation earlier at 80%. The calculator shows your exact month for both thresholds.
Can I remove PMI early without refinancing?
Yes, two ways: extra principal payments (pull the 78% date forward — model it above) or a new appraisal after appreciation/improvements, if your loan-to-current-value has fallen enough (rules vary by loan age and investor). Refinancing is the third path.
Is PMI tax deductible?
The PMI deduction has lapsed and been revived multiple times in tax law; as of the 2026 filing landscape it is not a reliable planning assumption. Check current-year IRS guidance or a tax professional.
Is PMI the same as FHA mortgage insurance?
No. PMI is on conventional loans and cancels; FHA MIP has an upfront 1.75% premium plus annual charges that usually last the life of the loan at low down payments. Compare programs in our FHA calculator.
Should I avoid PMI at all costs?
No — PMI is the price of buying years earlier than a 20% down payment allows. In appreciating markets, waiting can cost more than PMI does. Run the totals and decide with numbers, not slogans.
Related calculators
- Mortgage Calculator — Estimate your full monthly payment — principal, interest, property taxes, insurance, PMI, and HOA — with a complete amortization schedule.
- Down Payment Calculator — Every tier from 3.5% to 20% compared: cash needed, payment, PMI — and what your savings cover.
- Extra Payment Mortgage Calculator — What paying more each month (or one lump sum) does to your mortgage payoff date and interest.
- FHA Loan Calculator — FHA payment with both MIP charges included — upfront 1.75% and the annual premium, with the 11-year rule.
Disclaimer: Educational purposes only — not financial advice. Servicer rules and investor overlays vary. See our Terms of Use.