Does this include principal paydown?

No. It isolates appreciation effects. Add paydown manually and rerun.

Likely. Lenders usually require an appraisal or BPO to verify value for PMI removal.

Auto-drop vs request?

Auto-drop often at 78% LTV; requests may be allowed at 80%. Check your servicer.

Use a refinance calculator for rate changes; this focuses on LTV for PMI removal.

Seasoning/payment history?

Not modeled. Servicers may require on-time payments and seasoning.

finance calculator

PMI Drop Calculator

Estimate when you might reach the LTV threshold to drop PMI based on current balance, home value, appreciation rate, and PMI cutoff.

Results

Current LTV: 80.00%
Projected home value: $412,166
Projected LTV: 77.64%
Meets PMI threshold?: 1.00

How to use this calculator

Enter current home value and loan balance.
Enter annual appreciation rate and months ahead to project.
Enter your lender’s PMI LTV threshold (e.g., 80%).
Review current LTV, projected LTV, and whether you meet the threshold.

Inputs explained

Current value: Estimated market value of your home.
Loan balance: Current payoff balance.
Appreciation rate: Annual % to project future value (set to 0 for no change).
Months ahead: Projection window for LTV.
PMI threshold: LTV target to drop PMI (commonly 80%).

How it works

Current LTV = balance ÷ value. Future value = value × (1 + appreciation/12)^{months}. Future LTV = balance ÷ future value. Check against PMI threshold.

Formula

Current LTV = Balance ÷ Value
Future value = Value × (1 + Appreciation/12)^{Months}
Future LTV = Balance ÷ Future value

When to use it

Checking if appreciation plus amortization might qualify you to drop PMI.
Planning when to order an appraisal for PMI removal.
Understanding LTV trajectory to time a refinance or PMI removal request.

Tips & cautions

If you’re aggressively paying down principal, recalculate with a lower balance to see a faster PMI drop.
Appreciation is uncertain—use conservative estimates to avoid overconfidence.
Some lenders auto-drop at 78% LTV; use 78% if you want the automatic threshold.
Does not include principal paydown over time; assumes balance stays constant for projection simplicity.
Appreciation is speculative—actual market changes vary.
PMI removal rules vary by lender/investor; check your servicer’s requirements (seasoning, payment history).

Worked examples

$400k value, $320k balance, 3% appreciation, 12 months, 80% threshold

Current LTV = 80%
Future value ≈ $412,120
Future LTV ≈ 77.6%
Meets threshold: Yes

$350k value, $300k balance, 0% appreciation, 12 months, 80% threshold

Current LTV ≈ 85.7%
Future LTV ≈ 85.7% (no appreciation)
Meets threshold: No without paydown/appraisal

Deep dive

This PMI drop calculator projects your LTV using appreciation and compares it to your lender’s PMI threshold to see if you may qualify to remove PMI.

Use it to decide when to request PMI removal or to time a refinance/appraisal.

FAQs

Does this include principal paydown?: No. It isolates appreciation effects. Add paydown manually and rerun.
Appraisal needed?: Likely. Lenders usually require an appraisal or BPO to verify value for PMI removal.
Auto-drop vs request?: Auto-drop often at 78% LTV; requests may be allowed at 80%. Check your servicer.
Refi vs drop?: Use a refinance calculator for rate changes; this focuses on LTV for PMI removal.
Seasoning/payment history?: Not modeled. Servicers may require on-time payments and seasoning.

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Estimate only. PMI removal depends on lender/investor rules, appraisal results, and payment history. Consult your servicer before relying on this projection.