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FHA Loan Calculator
FHA loans carry two mortgage insurance premiums, not one. This FHA loan calculator shows your real monthly payment — principal, interest and both MIP charges — using the current HUD MIP schedule, auto-selected for your loan and editable if you disagree.
See how this works on a $350,000 FHA purchase — 3 real examples
Monthly payment (P&I + MIP)
$0
Principal & interest
$0
Monthly MIP
$0
Upfront MIP (financed)
$0
Total loan amount
$0
One payment, month by month — principal, interest and MIP
- Interest—
- Principal—
- Mortgage insurance—
Watch the amber MIP band: it is the same dollars every month, then drops to $0 the month annual MIP cancels — or runs the whole term if your down payment is under 10%. Taxes, insurance and HOA dues are not included anywhere on this page.
Total of all payments: $0 — including $0 interest and $0 of MIP.
Annual MIP rate applied
Last reviewed0.55%
- Source: HUD Mortgagee Letter 2023-05 — FHA annual MIP schedule (Handbook 4000.1 Appendix 1.0)
- Source: HUD — FHA mortgage insurance premium structure for forward mortgages
- County loan limits (2026 floor $541,287, ceiling $1,249,125; HUD republishes each December): HUD — look up your county’s limit
Loan balance over time
Amortization scheduleYear-by-year breakdown
| Year | Principal | Interest | MIP | End balance |
|---|
How your FHA mortgage payment and MIP are calculated
Principal & interest use the standard mortgage payment formula on the total loan (base loan plus financed upfront MIP):
M = L · i / (1 − (1 + i)−n), where i = rate / 12 and n = years × 12
The FHA-specific pieces come from HUD’s published constants: upfront MIP = 1.75% × (price − down payment), financed into the loan, so L = base loan × 1.0175; and monthly MIP = base loan × annual MIP % / 12. The annual MIP percent is looked up in HUD’s Appendix 1.0 schedule (Mortgagee Letter 2023-05) by loan term (≤15 vs >15 years), base loan amount vs the $726,200 threshold, and loan-to-value ratio — LTV is base loan ÷ price, excluding the financed upfront MIP, per HUD. Duration follows the post-June-2013 rule: LTV at or below 90% pays MIP for 11 years; above 90% pays for the full term.
Two honest simplifications: the monthly MIP shown is the first-year figure held constant (HUD servicing actually recalculates it each year on the declining average balance, so real MIP drifts slightly lower over time — our totals are a touch conservative), and the upfront premium is assumed fully financed rather than paid in cash. Property taxes, homeowners insurance, and HOA dues are excluded. MIP and UFMIP constants were last reviewed July 2026 against the HUD sources linked in the “Annual MIP rate applied” panel above.
One $350,000 house, three insurance bills
Three FHA setups for the same $350,000 house at 6.5%. The rate never changes below; the mortgage insurance is what moves.
The minimum ticket in
per month$2,326.97
- With $12,250 down, the insurance runs $154.80 a month for all 360 payments — it never cancels.
- A financed $5,911 upfront premium raises the balance owed to $343,661 before the first payment.
- The insurance alone collects $55,729 across the term, on top of $438,320 in interest.
The lowest bar to entry, carrying a premium that runs the full thirty years.
Load this example (opens in a new tab)The eleven-year cutoff
per month$2,157.11
- The down payment climbs to $35,000, and the premium drops to $131.25 on the smaller $315,000 loan.
- At 10% down the insurance cancels after eleven years: 132 payments, then $0.
- Lifetime premiums stop at $17,325 — less than a third of the minimum-down figure.
An extra $22,750 at closing buys off $38,404 of insurance and $29,524 of interest.
Load this example (opens in a new tab)The short-clock schedule
per month$3,106.24
- Fifteen-year terms use a cheaper table: 0.40% a year, or $112.58 a month, on the same loan.
- The payment jumps $779.27 over the 30-year default, but interest shrinks to $195,197.
- All-in cost lands at $559,123 — $278,587 below the same down payment on the slow clock.
The steepest monthly payment turns into the cheapest total cost of the three.
Load this example (opens in a new tab)Illustrations only, not financial advice. Your own rate, taxes and insurance will differ — check with a qualified financial advisor before acting on any of this.
FHA loans and MIP, in plain English
- Two premiums, always. Every FHA loan carries a 1.75% upfront MIP (usually financed) plus an annual MIP billed monthly — this calculator folds in both, not just principal & interest.
- The annual rate isn’t fixed at 0.55%. HUD’s schedule moves with your LTV, term and loan size; this page auto-selects the correct band and shows it as a dated, editable constant.
- 10% down changes the rules. Below 10% down, annual MIP runs for the life of the loan; at 10% or more it cancels after 11 years — often a tens-of-thousands-of-dollars difference.
- Shorter terms cost far less MIP. A 15-year term uses a cheaper 0.15%–0.65% schedule and pays down fast, so total insurance is a fraction of the default 30-year FHA figure.
- FHA vs conventional is a credit question. Below ~680 with a small down payment FHA usually wins; with strong credit and 10%–20% down, conventional PMI often cancels sooner and costs less.
Related calculators
Frequently asked questions
What is the minimum down payment for an FHA loan?
FHA allows 3.5% down with a credit score of 580 or higher; scores between 500 and 579 require 10% down. On a $350,000 home, 3.5% is $12,250, and the entire amount can be a gift from family. Putting 10% or more down also switches your annual MIP from life-of-loan to an 11-year schedule. Not sure how much home you can afford? Nudge the price or down payment and the monthly payment updates instantly.
What is FHA MIP and how much does it cost?
FHA mortgage insurance premium (MIP) has two parts: an upfront premium of 1.75% of the base loan (usually financed into the mortgage) and an annual premium of 0.15%–0.75% of the loan, billed monthly. To put that in dollars, take this page’s default scenario: a 30-year buyer with 3.5% down pays 0.55% per year — about $155 a month on a $337,750 base loan, under the HUD schedule current as of July 2026. That is an illustration of the defaults above, not a quote for your loan; change the inputs and every figure on the page updates.
When does FHA mortgage insurance go away?
For loans closed since June 3, 2013, the rule depends on your starting loan-to-value: put down less than 10% (LTV above 90%) and annual MIP runs for the life of the loan; put down 10% or more and it cancels after 11 years. Many borrowers with under 10% down eventually refinance into a conventional loan once they reach about 20% equity to drop the premium.
What are the FHA loan limits?
HUD sets limits county by county between a national floor and a high-cost ceiling. For 2026, the floor is $541,287 and the ceiling is $1,249,125 for a single-family home (higher in Alaska and Hawaii); most counties land somewhere in between, so neither number is likely to be your limit. HUD republishes the whole schedule every December, effective January 1 of the new year — so if it is now past December 2026, the two figures above are last year’s and the current ones will be a little higher. Either way, the authority is HUD’s own county loan-limit lookup on hud.gov, linked under “Annual MIP rate applied” in the results — check your county there before you rely on any number, including ours. Separately, base loans above $726,200 pay a higher annual MIP band (0.70%–0.75% on 30-year terms), which this calculator applies automatically.
Is an FHA loan cheaper than a conventional loan?
It mostly depends on your credit score and down payment. Below roughly 680 with a small down payment, FHA usually wins: its rate advantage and flat MIP pricing beat the steep PMI a conventional lender would charge. With strong credit and 10%–20% down, conventional is often cheaper because PMI is credit-priced and cancels automatically at 78% LTV, while low-down FHA MIP never cancels. Run both and compare total monthly and lifetime cost.
Why is my FHA loan amount higher than the price minus my down payment?
Because the 1.75% upfront MIP is financed on top of the base loan. In the default scenario, a $350,000 price minus $12,250 down gives a $337,750 base loan; adding roughly $5,911 of upfront MIP means about $343,661 actually amortizes. You can pay the upfront premium in cash at closing instead — this calculator assumes it is financed, which is what most borrowers do.
Is this an FHA mortgage calculator with taxes and insurance included?
No — this FHA mortgage calculator focuses on principal, interest, and FHA mortgage insurance only, so the numbers stay verifiable against the stated formulas. Taxes and insurance vary widely by county and carrier, so to approximate a payment with taxes and insurance folded in, budget roughly 1%–1.5% of the home’s value per year for property taxes and $1,200–$2,500 per year for homeowners insurance on top of the payment shown here.
Disclaimer: these calculators are educational tools, not financial advice. They model your inputs with published formulas, but they cannot know your full situation — for decisions with real stakes, talk to a qualified professional. Formulas and defaults last reviewed .