Calculation Logic
This calculator tracks your loan-to-value (LTV) ratio over time by simulating monthly principal paydown and home value appreciation. It starts with your current balance and home value, then applies your appreciation rate and any extra principal payments each month until your LTV drops to 80% — the threshold where PMI can be removed. The chart plots your LTV decline against the 80% line.
How to Use
- Enter your current home value and loan balance.
- Input your current monthly PMI cost.
- Add your expected annual home appreciation rate (3% is a conservative long-term average).
- Include any extra monthly principal you pay.
- Click Calculate to see months until 80% LTV, total PMI remaining, and potential savings from refinancing.
Pro Tips
- Appreciation is the hidden accelerator: In hot markets, rising home values can drop your LTV faster than principal payments alone.
- Request an appraisal at 80% LTV: You do not have to wait for automatic removal. A $500 appraisal can save thousands.
- Refinancing can remove PMI instantly: If your current LTV is already below 80%, a refinance eliminates PMI from day one.