FHA Loan Calculator
Calculate your FHA loan payment including mortgage insurance premium (MIP) with this comprehensive calculator. Enter your home price, down payment percentage (FHA minimum 3.5% for credit score 580+, or 10% for score 500-579), interest rate and loan term to see your complete monthly payment: principal, interest and MIP. The calculator uses the latest HUD Mortgagee Letter rates (effective March 2023) and shows both the upfront MIP (1.75%, typically financed into the loan) and the ongoing annual MIP rate based on your loan-to-value ratio. You will see when MIP can be cancelled (11 years if you put down 10% or more, or life of loan if less than 10%), total MIP paid over the loan term, and your LTV at origination. Perfect for evaluating FHA loans versus conventional mortgages and understanding the true cost of the government insurance that allows lower down payments.
On a $350,000 home with 3.5% down at 6.75% for 30 years, the estimated total monthly payment is $2,386.49 including $157.51/mo MIP. MIP duration: Life of loan (refinance to remove).
How FHA MIP is calculated
FHA mortgage insurance has two components: an upfront premium paid once at closing (or financed into the loan), and an annual premium collected monthly. The rates below are from HUD Mortgagee Letter 2023-05, which took effect on 20 March 2023 and reduced annual MIP rates significantly for most borrowers.
MIP rate table (30-year FHA loans)
| LTV at origination | Loan amount | Annual MIP rate | MIP duration |
|---|---|---|---|
| > 95% (below 5% down) | Up to $726,200 | 0.55% | Life of loan |
| 90.01% to 95% (5%-9.99% down) | Up to $726,200 | 0.50% | Life of loan |
| 90% or below (10%+ down) | Up to $726,200 | 0.50% | 11 years |
| > 95% (below 5% down) | Over $726,200 | 0.75% | Life of loan |
| 90.01% to 95% | Over $726,200 | 0.70% | Life of loan |
| 90% or below | Over $726,200 | 0.70% | 11 years |
Source: HUD Mortgagee Letter 2023-05, effective 20 March 2023.
Calculation steps
Base loan = home price - down payment
Upfront MIP = base loan x 0.0175
Total loan = base loan + upfront MIP (if financed)
Monthly P+I = PMT(total loan, annual rate / 12, term months)
Annual MIP rate = lookup from table above
Monthly MIP = total loan x annual MIP rate / 12
Total monthly = monthly P+I + monthly MIP
Worked example
$350,000 home, 3.5% down ($12,250), 6.75% rate, 30-year term, UFMIP financed:
- Base loan = $350,000 - $12,250 = $337,750
- Upfront MIP = $337,750 x 0.0175 = $5,911
- Total loan = $337,750 + $5,911 = $343,661
- LTV = $343,661 / $350,000 = 98.2% (LTV above 95%, annual MIP = 0.55%)
- Monthly P+I = $2,228 (PMT at 6.75%/12 for 360 months)
- Monthly MIP = $343,661 x 0.0055 / 12 = $157
- Total monthly = $2,228 + $157 = $2,385
- MIP duration: LTV above 90% at origination, so MIP applies for the life of the loan
FHA loan key facts
FHA loans are originated by approved private lenders and insured by HUD's Federal Housing Administration. The insurance reduces lender risk, allowing borrowers with lower credit scores or smaller down payments to access mortgage financing.
The 2025 FHA loan limit for a single-family home is $524,225 in most counties (the national floor) and up to $1,209,750 in high-cost areas (the national ceiling). Alaska, Hawaii, Guam, and the U.S. Virgin Islands have higher limits. Check your county's specific limit on the HUD FHA program page.
The key trade-off with FHA versus conventional is mortgage insurance. A conventional loan with 20% down has no mortgage insurance at all. A conventional loan with less than 20% down has PMI, but PMI can be cancelled once your loan-to-value ratio reaches 80%, typically after a few years of payments or home price appreciation. FHA MIP for borrowers who put down less than 10% cannot be removed without refinancing, which adds cost and complexity.
Borrowers planning to refinance after building equity may find FHA an affordable entry point. Borrowers intending to hold the loan long-term should model the total lifetime MIP cost against a conventional loan with PMI before choosing.
The MIP trap FHA borrowers miss
The most expensive FHA mistake is assuming mortgage insurance behaves like conventional PMI and will fall away once you reach 20% equity. It does not. If you put down less than 10%, the annual MIP is attached for the life of the loan, and the only exit is refinancing into a non-FHA mortgage. On the default example here, a $350,000 home with 3.5% down, that annual premium runs about $157 a month, and the calculator estimates roughly $56,700 across a full 30-year hold.
That makes the standard FHA plan, refinance to a conventional loan once you cross about 20% equity to shed MIP, quietly conditional on interest rates. It only pays if market rates have not climbed since you closed. If you locked 6.75% and rates later sit near 8%, refinancing just to escape a 0.55% MIP can cost far more in extra interest than the premium ever would, and the temporary insurance becomes permanent. Model the refinance at a realistic future rate before you count on it.
There is also a hard cliff at a 90% loan-to-value at origination. Put down less than 10% and MIP lasts the life of the loan; put down 10% or more and it cancels automatically after 11 years. Stretching from 3.5% to 10% down is a large cash outlay, but over a long hold it can be the cheaper path once you add up a decade or more of premiums you would otherwise never shed.
FHA loan calculator: frequently asked questions
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD). Because the government insures the lender against borrower default, lenders can offer lower down payments and more flexible credit requirements than on conventional loans. Borrowers pay for this insurance through an upfront mortgage insurance premium (UFMIP) and an ongoing annual MIP.
What credit score do I need for an FHA loan?
FHA guidelines set a minimum credit score of 580 for the 3.5% down payment option. Borrowers with credit scores between 500 and 579 may still qualify but must put down at least 10%. Individual lenders may set higher minimums (sometimes called lender overlays). Credit scores below 500 are not eligible under FHA guidelines. See HUD's FHA program page at hud.gov for the current requirements.
Can I remove FHA MIP from my loan?
It depends on your original down payment. If you put down 10% or more (LTV at origination was 90% or below), your annual MIP automatically cancels after 11 years. If you put down less than 10% (LTV above 90%), MIP applies for the entire life of the loan and cannot be removed without refinancing into a conventional or other non-FHA mortgage. This is a key difference from conventional PMI, which can be cancelled once equity reaches 20%.
How does FHA compare to a conventional loan?
FHA loans have lower minimum credit score and down payment requirements, but MIP is often more expensive than conventional PMI and, for most borrowers, cannot be removed without refinancing. Conventional loans with 20% down avoid mortgage insurance entirely. For borrowers with stronger credit (typically 680+) and at least 5-10% down, a conventional loan may have a lower total monthly payment. Compare both options at your specific credit score and down payment before deciding.
What is the FHA loan limit for 2025?
For 2025, the FHA loan limit for a single-family property in most areas of the United States is $524,225 (the 'floor'). In high-cost areas, the limit rises to $1,209,750 (the 'ceiling'). Limits vary by county and are set annually by HUD. You can look up your county's limit on the HUD website at hud.gov.
What is the upfront MIP and should I finance it?
The upfront mortgage insurance premium (UFMIP) is 1.75% of the base loan amount. You can pay it in cash at closing or, as most borrowers do, roll it into the loan balance. Financing the UFMIP increases your loan balance and therefore your monthly payment slightly, and you will pay interest on it over the life of the loan. The calculator shows both scenarios when you toggle the 'Finance upfront MIP?' option.
Official sources
- MIP rates (2023 reduction): HUD Mortgagee Letter 2023-05, effective 20 March 2023.
- FHA program overview: HUD, FHA Single Family Housing.
- CFPB FHA loan information: CFPB, FHA Loans.
Reviewed by the CalculatorHub team, edited by James Graham, 12 June 2026. See our methodology. General information, not financial advice.