UtilibyWritten by the Utiliby editorial team · Last updated October 15, 2026 · Rules and formulas reviewed October 2026
What this free online remove PMI refinance calculator does
Private mortgage insurance, or PMI, protects the lender, not you, when you buy a home with a small down payment. You pay it every month until your loan balance falls far enough compared with the value of the home. Many owners pay it for years longer than they need to. This free online remove PMI refinance calculator answers three questions: when will the PMI end by itself, would a refinance end it sooner, and which choice costs less?
It follows your balance month by month, tracks your loan-to-value against the 80% mark, and compares keeping the loan with refinancing, counting the interest, the PMI and the refinance costs. It also shows how much extra principal would end PMI faster. Everything runs in your browser, so your figures stay private.
How to use the calculator
- Enter your home and loan. Use today's estimated value, the original value, the balance, the rate and the PMI shown on your statement.
- Say how your servicer cancels PMI. If it accepts a new appraisal, choose today's value and enter a growth rate. If it only uses the original value, keep the default.
- Describe the refinance. Enter the new rate, term and costs, and whether the costs are added to the loan.
- Read the verdict. The result shows whether refinancing or waiting costs less over the years you will keep the loan, the break-even and the loan-to-value chart.
- Explore the tabs. See when PMI could end, how much extra principal would shorten it and how other rates change the answer.
How PMI ends
| Route | What it needs | Cost |
|---|---|---|
| Request cancellation | Balance at 80% of original value, current payments, often no second loan | Usually none |
| Automatic termination | Balance at 78% of original value on the schedule | None |
| Reappraisal | Higher value brings loan-to-value to 80%; servicer rules apply | Appraisal fee |
| Extra principal | Pay the balance down to 80% | Your own cash |
| Refinance | New loan at 80% or less of the appraised value | Closing costs |
Rules differ by loan type and country, so confirm the details with your servicer. The tool does not decide whether you qualify. It estimates the cost of each path.
Worked example
A homeowner owes 345,000 at 6.9% with 28 years left and pays 170 a month in PMI. The home was bought for 400,000 and is now valued at 450,000. The servicer cancels only on the original value, which means waiting for the balance to reach 320,000, the 80% mark. That takes about five years, during which about 10,500 of PMI is paid. A refinance to 6.25% costs 2.5% of the loan, which is added to the loan. The new loan is about 354,000, which is under 80% of the new appraisal of 450,000, so the PMI ends at once.
Over seven years the refinance saves about 12,600 after the costs, because it removes the PMI at once and lowers the rate, and the costs are repaid in under two and a half years. Change the inputs to test other cases. If the servicer accepts a new appraisal, the balance is already below 80% of today's value and a refinance is not needed.
Loan-to-value and why 80% matters
Loan-to-value, or LTV, is your loan balance divided by the value of the home. A balance of 320,000 on a home worth 400,000 is an LTV of 80%. Lenders see a lower LTV as lower risk, because there is more equity to recover if a loan goes wrong. PMI exists to cover the gap when the LTV is high, so once the LTV falls to 80% or below, the lender's risk is lower and the insurance can usually stop.
Your LTV falls in two ways. Paying down the balance lowers the top of the fraction, and a rising home value raises the bottom. Early in a loan most of each payment is interest, so the balance falls slowly, which is why PMI can last longer than people expect. Value changes can move the ratio faster than payments do, which is why a reappraisal is worth considering, and why a falling market can push a refinance out of reach. The loan-to-value chart in the results shows both effects, with the 80% line marked.
The cost of waiting is easy to measure: it is the PMI you pay each month until the line crosses 80%. The cost of refinancing is the closing costs, less any rate saving and the PMI you avoid. The calculator sets these side by side for the number of years you expect to keep the loan, which is the only period that matters to you. If you may sell or refinance again within two or three years, a refinance with high costs rarely pays, however much the PMI hurts.
Alternatives to refinancing
- Ask for cancellation. If your balance is already 80% or less of the value, a call to the servicer is the cheapest step.
- Get a new appraisal. If values have risen, it may show you have reached 80%.
- Pay extra. A modest extra payment can end PMI years sooner.
- Recast. Some lenders allow a lump-sum payment and re-calculation of the payment. Ask whether it affects PMI.
- Refinance. Best when the rate also falls, or when the value has risen enough to reach 80% and the servicer will not cancel.
Common mistakes
- Refinancing when you could cancel for free. Ask first.
- Rolling in costs and missing 80%. The costs raise the loan-to-value.
- Using an optimistic value. The lender's appraisal decides.
- Forgetting the break-even. Moving soon can cost more than it saves.
- Assuming new PMI will be the same. It depends on credit score and loan-to-value.
Related refinance tools and guides
This calculator is one of a set of free refinance tools on Utiliby. Depending on what you are deciding, these may help next.
- Mortgage Refinance Calculator: a full refinance comparison.
- FHA, VA and USDA Streamline Refinance Calculator: for FHA mortgage insurance.
- Refinance Break-Even Calculator: payback month.
For background reading:
- Refinancing with Bad Credit, Self-Employed Income or Negative Equity
- How to Calculate Mortgage Refinance Savings
Privacy, accuracy and limits
The calculator runs entirely in your browser. The figures you enter are not sent to a server and are not stored, and reloading the page returns the example. The default values are illustrations. New PMI, if it applies, is estimated in proportion to your current PMI, taxes and insurance are not included, and a lender decides whether to cancel PMI or approve a loan. Confirm every number with your servicer or lender before you decide.
Frequently asked questions
How do I get rid of PMI?
You can usually ask your servicer to cancel it once your balance reaches 80% of the original value, if your payments are current and your lender agrees. It ends automatically at 78% of the original value on schedule. You can also refinance into a loan with 80% or less loan-to-value, or pay down the balance faster.
Does refinancing remove PMI?
It can, if the new loan is 80% or less of your home's current appraised value. If your home has risen in value, or you have paid the balance down, the new loan may qualify. If not, the new loan will probably carry PMI too.
Is it worth refinancing just to remove PMI?
Only if the PMI saved, plus any rate saving, exceeds the refinance costs within the time you will keep the loan. The calculator finds the break-even month and the net saving. If you can cancel PMI without refinancing, that is usually cheaper.
Can I cancel PMI without refinancing?
Often yes. Servicers commonly allow a request once the balance reaches 80% of the original value, and many will consider a new appraisal if the value has risen, subject to their rules, such as a minimum age of the loan. Ask your servicer for its requirements.
What is the 80% and 78% rule?
In the US, the Homeowners Protection Act lets you request cancellation of PMI at 80% of the original value and requires automatic termination at 78%, for loans it covers and when you are current. Other rules can apply to other loans. Ask your servicer.
Does the calculator use the original value or the current value?
You choose. If your servicer will use a new appraisal, select today's value and the tool grows it at the rate you enter. If not, it uses the original value and the repayment schedule.
What if my home has gone up in value?
A higher value lowers your loan-to-value, which may let you cancel PMI or refinance without it. Enter your estimate, and try different growth rates in the When PMI ends tab.
What if my home has fallen in value?
Your loan-to-value rises, so a refinance is less likely to remove PMI. Waiting or paying down the balance may be the better route.
Can I pay extra to end PMI sooner?
Yes. Extra principal lowers the balance faster. The When PMI ends tab shows how much extra each month would reach 80% in 1, 2, 3 or 5 years and the PMI saved.
Should I roll closing costs into the new loan?
That raises the new balance and its loan-to-value, which may keep PMI. Paying costs at closing can keep the loan under 80%. Try both choices in the tool.
How much does PMI cost?
It varies with your credit score, down payment and loan, and is often quoted as a yearly percentage of the loan. Enter the monthly amount from your statement.
Is PMI tax deductible?
The rules have changed over time and depend on the country and your income. Ask a tax adviser. The tool ignores tax.
What about FHA mortgage insurance?
FHA insurance follows different rules and, depending on the down payment and date of the loan, may last for the life of the loan. Refinancing into a conventional loan can end it. Use the FHA, VA and USDA calculator on this site for that comparison.
What credit score do I need?
Lenders set their own limits. A better score usually means a lower rate and lower PMI, if PMI applies. Check with your lender.
How accurate are the default figures?
They are only examples. Replace the value, balance, PMI and rates with your own, and use a lender's quote for the final decision.
Is my information private?
Yes. The calculator runs in your browser. Nothing you enter is sent to a server, saved or shared, and reloading the page resets it.
Is this remove PMI refinance calculator free?
Yes. It is a free online calculator with no sign-up, trial or limit. You can print or download the results.
Sources and further reading
- Consumer Financial Protection Bureau, "When can I stop paying private mortgage insurance (PMI)?" and "What is private mortgage insurance?" (consumerfinance.gov/ask-cfpb).
- Consumer Financial Protection Bureau, "How can I cancel my private mortgage insurance (PMI)?" (consumerfinance.gov/ask-cfpb).
- Homeowners Protection Act of 1998, 12 U.S.C. 4901 and following (law.cornell.edu/uscode).
- Federal Reserve Board, Consumer Handbook materials on mortgage insurance (federalreserve.gov).
Sources were consulted in October 2026. Standards and rules can change, so always check the official page for your situation.