FHA Loan Calculator
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Results
FHA payment $2,744.96 a month on a $343,661 loan, including $153.98 of MIP; upfront MIP $5,911.
- Principal and interest
- $2,115.98
- Monthly MIP
- $153.98
- Property tax
- $350.00
- Home insurance
- $125.00
| Year | Principal | Interest | Annual MIP | Balance |
|---|---|---|---|---|
| 1 | $4,027 | $21,365 | $1,848 | $339,634 |
| 2 | $4,286 | $21,106 | $1,825 | $335,348 |
| 3 | $4,562 | $20,830 | $1,802 | $330,786 |
| 4 | $4,855 | $20,537 | $1,776 | $325,931 |
| 5 | $5,167 | $20,224 | $1,749 | $320,763 |
| 6 | $5,500 | $19,892 | $1,720 | $315,264 |
| 7 | $5,854 | $19,538 | $1,690 | $309,410 |
| 8 | $6,230 | $19,162 | $1,657 | $303,180 |
| 9 | $6,631 | $18,761 | $1,623 | $296,549 |
| 10 | $7,057 | $18,334 | $1,586 | $289,492 |
| 11 | $7,511 | $17,880 | $1,546 | $281,981 |
| 12 | $7,994 | $17,397 | $1,505 | $273,986 |
MIP rates: HUD Mortgagee Letter 2023-05 and Handbook 4000.1, Appendix 1.0 (loans endorsed on or after March 20, 2023), checked October 2026. Annual MIP is recalculated each year on the average scheduled balance, so it falls slowly. Confirm current rates with your lender.
How to use the FHA loan calculator
- Enter the home price and your down payment percentage. FHA's minimum is 3.5% with a credit score of 580 or higher.
- Enter the interest rate and term. Terms over 15 years and 15 years or less use different annual MIP rates.
- Keep "HUD table" to look up the premium automatically, or enter the rates on your Loan Estimate. Choose whether the upfront MIP is added to the loan.
- Add property tax, home insurance and any HOA fee for the full payment, and open the yearly schedule to see the MIP fall over time.
FHA MIP formulas
Upfront MIP = base loan × 1.75%
Loan amount = base loan + upfront MIP (if financed)
Monthly MIP = average scheduled balance for the year × annual MIP rate ÷ (1 + 1.75%) ÷ 12
HUD sets the annual rate by term, base loan amount and loan-to-value (base loan ÷ price). It recalculates the premium each year from the average of that year's 12 scheduled balances. When the upfront premium is financed, HUD divides by 1.0175 so you are not charged annual MIP on the upfront MIP. The result is the same as working from the balance without it. Because the balance shrinks, the monthly MIP falls a little each year. At 90% LTV or less, annual MIP stops after 11 years. Above 90% it lasts as long as the loan.
Worked example
A $350,000 home with 3.5% down ($12,250) has a base loan of $337,750. The upfront MIP is $337,750 × 1.75% = $5,910.63, which is added to the loan for a total of $343,661. At 6.25% for 30 years the principal and interest are $2,115.98.
The LTV is 96.5%, so the annual MIP is 0.55% for the life of the loan: $153.98 a month in year 1, falling to $128.87 by year 11. With $4,200 of property tax and $1,500 of insurance, the total payment is $2,744.96. Over 30 years you would pay $42,070 in MIP, upfront and annual combined.
HUD annual MIP rates
Source: HUD Mortgagee Letter 2023-05 and Handbook 4000.1, Appendix 1.0, for FHA forward mortgages endorsed on or after March 20, 2023. The upfront MIP is 1.75% of the base loan in every case. Figures checked October 19, 2026.
| Term | Base loan | LTV | Annual MIP | Charged for |
|---|---|---|---|---|
| Over 15 years | $726,200 or less | 90% or less | 0.50% | 11 years |
| Over 15 years | $726,200 or less | Over 90% to 95% | 0.50% | Loan term |
| Over 15 years | $726,200 or less | Over 95% | 0.55% | Loan term |
| Over 15 years | Over $726,200 | 90% or less | 0.70% | 11 years |
| Over 15 years | Over $726,200 | Over 90% to 95% | 0.70% | Loan term |
| Over 15 years | Over $726,200 | Over 95% | 0.75% | Loan term |
| 15 years or less | $726,200 or less | 90% or less | 0.15% | 11 years |
| 15 years or less | $726,200 or less | Over 90% | 0.40% | Loan term |
| 15 years or less | Over $726,200 | 78% or less | 0.15% | 11 years |
| 15 years or less | Over $726,200 | Over 78% to 90% | 0.40% | 11 years |
| 15 years or less | Over $726,200 | Over 90% | 0.65% | Loan term |
How the down payment changes MIP
$350,000 home, 6.25%, 30 years, upfront MIP financed.
| Down payment | Upfront MIP | Annual rate | Monthly MIP, year 1 | Total MIP |
|---|---|---|---|---|
| 3.5% | $5,911 | 0.55% (life of loan) | $153.98 | $42,070 |
| 5% | $5,819 | 0.5% (life of loan) | $137.81 | $38,180 |
| 10% | $5,513 | 0.5% (11 years) | $130.55 | $21,471 |
Putting 10% down doesn't change the upfront premium much, but it cuts annual MIP from the life of the loan to 11 years, roughly halving the total.
Things to know about FHA loans
- Minimum down payment. 3.5% with a credit score of 580 or more. Scores of 500 to 579 need 10% down. Gift funds from family can count.
- Loan limits. FHA caps the loan amount by county, and the cap changes each year. Check HUD's FHA mortgage limits lookup for your area.
- Removing MIP. With less than 10% down, the only way to drop MIP is to refinance, often into a conventional loan once you have 20% equity. Compare the options with the refinance calculator.
- FHA vs conventional. Conventional PMI depends heavily on credit score and ends at 78% LTV, so borrowers with strong credit often pay less on a conventional loan. Run both the FHA figures and the mortgage calculator with your PMI quote.
Eligible veterans and service members should also compare a VA loan, which has no monthly mortgage insurance. To check the price range first, use the house affordability calculator with FHA's 31% / 43% ratios.
Frequently asked questions
How much is FHA mortgage insurance?
There are two parts. The upfront MIP is 1.75% of the base loan, usually added to the loan. The annual MIP for most borrowers (over 15 years, base loan up to $726,200, more than 95% LTV) is 0.55% a year, paid monthly. Rates are from HUD Mortgagee Letter 2023-05, effective for loans endorsed from March 20, 2023.
What is the monthly MIP on a $300,000 FHA home with 3.5% down?
The base loan is $289,500 and the upfront MIP of $5,066.25 brings the loan to $294,566.25. At 0.55% a year, the monthly MIP in the first year is about $132, falling slowly as the balance drops. At 6.5% for 30 years, principal and interest add $1,861.86.
Does FHA MIP ever go away?
With at least 10% down (90% LTV or less), annual MIP ends after 11 years. With less than 10% down it lasts for the life of the loan, so the usual way to remove it is to refinance into a conventional loan once you have enough equity.
What is the minimum down payment for an FHA loan?
FHA requires 3.5% down with a credit score of 580 or higher and 10% down for scores between 500 and 579. The down payment can come from savings or an acceptable gift.
Can I pay the FHA upfront MIP in cash instead of financing it?
Yes. Paying it at closing keeps the loan and the principal-and-interest payment lower, but raises the cash you need. The annual MIP is the same either way, because HUD calculates it without the financed upfront premium.