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FHA Loan Calculator

Estimate your FHA mortgage payment with the upfront and annual mortgage insurance premiums (MIP), property tax, insurance and HOA dues.

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MIP rates follow HUD Mortgagee Letter 2023-05 (case numbers endorsed on or after March 20, 2023) for purchase loans. Annual MIP is shown for the first year, based on the average loan balance, and falls slowly as you pay down the loan. FHA loan limits vary by county. Your lender sets the rate and closing costs.

Quick Answer

An FHA payment includes principal and interest, a 1.75% upfront MIP (usually added to the loan) and an annual MIP paid monthly. With a $350,000 home, 3.5% down and a 6.25% 30-year rate, the upfront MIP is $5,910.63, principal and interest is about $2,115.98, and the annual MIP of 0.55% adds about $156.67 a month.

Last updated: 2 November 2026 ·How we calculate this: HUD's FHA MIP chart and the standard mortgage formula

Table of Contents

How This FHA Loan Calculator Works

Enter the home price, your down payment, the interest rate and the loan term. The calculator adds the 1.75% upfront mortgage insurance premium, picks the annual MIP rate from HUD's chart based on your loan size, loan-to-value and term, and adds property tax, insurance and HOA dues to show your full monthly payment.

Quick explanation: FHA loans allow low down payments, but you pay mortgage insurance in two parts.

  • Upfront MIP: 1.75% of the base loan, usually financed.
  • Annual MIP: 0.15% to 0.75% a year, paid monthly.
  • Duration: 11 years with 10% or more down, otherwise for the life of the loan.

How to Use the FHA Loan Calculator

  1. Enter the home price and your down payment (at least 3.5%).
  2. Enter the interest rate and choose the loan term.
  3. Choose whether to add the upfront MIP to the loan.
  4. Enter property tax, insurance and HOA dues.
  5. Press Calculate and read the total payment, MIP and loan amount.

Core Formulas

  • Base loan: home price − down payment
  • Upfront MIP: base loan × 1.75%
  • Loan amount: base loan + upfront MIP, if financed
  • Monthly P&I: L × r ÷ (1 − (1 + r)^−n)
  • Monthly MIP: average yearly balance × annual MIP rate ÷ 12

Key Terms

  • FHA loan: a mortgage insured by the Federal Housing Administration, part of HUD.
  • MIP: mortgage insurance premium, paid on FHA loans.
  • UFMIP: upfront mortgage insurance premium, 1.75% of the base loan.
  • LTV: loan-to-value, the base loan divided by the home's value.
  • Base loan amount: the loan before adding the upfront MIP.

Worked Example

You buy a $300,000 home with $30,000 down (10%) on a 15-year loan at 6%.

  • Base loan = $270,000, so loan-to-value is 90%
  • Upfront MIP = $270,000 × 1.75% = $4,725.00
  • Annual MIP for a 15-year loan at 90% LTV is 0.15%, for 11 years, or about $33.68 a month at first

Real-Life Examples

  • A first home: $350,000 with 3.5% down at 6.25% has principal and interest of about $2,115.98, plus about $156.67 of MIP a month.
  • 10% down: $35,000 down on the same home means MIP ends after 11 years.
  • 15-year loan: the annual MIP drops to 0.40% with 3.5% down.
  • Paying MIP upfront: paying the $5,910.63 at closing avoids interest on it.

FHA vs Conventional vs VA

  • FHA: 3.5% minimum down, more flexible credit rules, upfront and annual MIP.
  • Conventional: as little as 3% down, PMI below 20% down that can be removed later.
  • VA: for eligible Veterans and service members, often 0% down and no monthly mortgage insurance. Try our VA Loan Calculator.

FHA Annual MIP Rates

Source: HUD Mortgagee Letter 2023-05. Upfront MIP is 1.75% for all these loans.

TermBase loanLTVAnnual MIPHow long
Over 15 yearsUp to $726,20090% or less0.50%11 years
Over 15 yearsUp to $726,200Over 90% to 95%0.50%Life of loan
Over 15 yearsUp to $726,200Over 95%0.55%Life of loan
Over 15 yearsOver $726,20090% or less0.70%11 years
Over 15 yearsOver $726,200Over 90% to 95%0.70%Life of loan
Over 15 yearsOver $726,200Over 95%0.75%Life of loan
15 years or lessUp to $726,20090% or less0.15%11 years
15 years or lessUp to $726,200Over 90%0.40%Life of loan
15 years or lessOver $726,20078% or less0.15%11 years
15 years or lessOver $726,200Over 78% to 90%0.40%11 years
15 years or lessOver $726,200Over 90%0.65%Life of loan

Ways to Lower FHA Costs

  • Put 10% down: annual MIP stops after 11 years instead of lasting for the life of the loan.
  • Choose 15 years: annual MIP rates are much lower on shorter loans.
  • Refinance later: once you have enough equity, a conventional loan may drop mortgage insurance.
  • Compare lenders: rates and fees differ, even though MIP rates are set by HUD.

Common Mistakes to Avoid

  • Forgetting the upfront MIP. It adds 1.75% to the loan if financed.
  • Assuming MIP goes away like PMI. With less than 10% down, it lasts for the life of the loan.
  • Leaving out taxes and insurance. They are part of your real monthly cost.
  • Ignoring loan limits. FHA loan limits depend on your county.
  • Only comparing rates. Compare the full cost, including MIP, against other loan types.

Frequently Asked Questions

3.5% for most borrowers. Lower credit scores may need 10% down.

An upfront premium of 1.75% of the base loan, plus an annual premium of 0.15% to 0.75%, depending on term, loan size and loan-to-value.

11 years if your loan-to-value starts at 90% or less. Otherwise, usually for the life of the loan.

With less than 10% down, the usual way is to refinance into a conventional loan once you have enough equity.

Usually yes, but you can also pay it at closing.

FHA allows scores as low as 500 with 10% down, or 580 with 3.5% down, but lenders may set higher limits.

It depends on your county and changes each year. Check HUD's FHA loan limit lookup.

FHA can be easier with lower credit or a small down payment. With good credit and more down, conventional is often cheaper over time.

HUD charges lower rates on shorter loans because they are paid off faster and carry less risk.

The rate stays the same, but the dollar amount falls slowly as your loan balance goes down.

It must be your main home and meet FHA property standards.

Not always. FHA rates are often similar to or lower than conventional rates, but MIP adds to the cost.

References & Sources

SourceUsed ForLink
HUD Mortgagee Letter 2023-05, Revision of Annual MIP Rates The MIP rates and durations used here. https://archives.hud.gov/news/2024/2023-05hsgml.pdf
HUD, FHA loan limits lookup Loan limits by county. https://entp.hud.gov/idapp/html/hicostlook.cfm