FHA Loan Calculator
FHA loans let you buy with as little as 3.5% down — in exchange for mortgage insurance premiums (MIP). This calculator adds the 1.75% upfront MIP to your loan, picks the correct 2026 annual MIP rate from your loan-to-value and term, and shows the true monthly payment with taxes, insurance, and HOA.
Lifetime cost breakdown
How you compare
Your monthly payment (P&I) vs. recent homebuyers
Your rate vs. the market
🏠 Compare FHA & conventional mortgage rates
Get quotesHow FHA payments work
The FHA doesn’t lend money — it insures lenders, which is why almost every FHA borrower pays two premiums. First, an upfront MIP of 1.75% of the base loan is added at closing (nearly everyone finances it into the balance). Second, an annual MIP of roughly 0.15%–0.75% of the balance is split into your monthly payment. With less than 10% down, that annual premium never cancels — it runs the full term — so the honest FHA payment is principal + interest + MIP + escrow, and that’s what this calculator shows.
How it’s calculated
Base loan = price − down payment. Upfront MIP = 1.75% × base loan, financed into the balance. P&I = L × r ÷ (1 − (1 + r)−n) on the financed balance. The annual MIP rate follows the HUD schedule (ML 2023-05): for terms over 15 years and base loans ≤ $726,200, 0.55% when LTV > 95% and 0.50% otherwise (0.70%/0.75% above $726,200); for terms ≤ 15 years, 0.15%–0.65%. Each year’s premium is the rate times that year’s average scheduled balance, divided into 12 monthly charges. Duration: 11 years if you put at least 10% down, otherwise the life of the loan.
Estimates for planning only — MIP rates, loan limits, and escrow items vary by county and lender. Confirm figures on your Loan Estimate.
Amortization & MIP by year
Interest, principal, and MIP per year on the financed balance, using the MIP duration selected above.
Worked example
A $350,000 home with the FHA-minimum 3.5% down ($12,250) leaves a base loan of $337,750 — 96.5% LTV. Upfront MIP adds $5,910.63, so you finance $343,660.63. At 6.5% for 30 years, principal and interest is $2,172.17, year-one MIP adds about $156.71 a month (0.55% rate), and $4,200 taxes plus $1,600 insurance bring the real payment to about $2,812 a month. Because LTV exceeds 90%, MIP lasts the whole term — roughly $37,089 of MIP on top of $438,320 in interest unless you refinance out.
Common mistakes
- Budgeting from the principal-and-interest quote alone — MIP plus escrow adds hundreds a month on an FHA loan.
- Forgetting the financed upfront MIP raises your balance, so you owe more than the price minus the down payment.
- Assuming MIP cancels at 20% equity like conventional PMI — with under 10% down it never does.
- Ignoring the refinance exit: once you reach ~20% equity, a conventional refi can drop mortgage insurance entirely.
Where it is used
- First-time buyers comparing an FHA offer against a conventional loan with PMI.
- Budgeting the full monthly cost before making an offer on a house.
- Deciding between 3.5% down (life-of-loan MIP) and 10% down (11-year MIP).
Frequently asked questions
How long do I pay FHA mortgage insurance?
For loans closed since June 2013: if you put down less than 10%, annual MIP lasts for the life of the loan; with 10% or more down it drops off after 11 years. The usual exit is refinancing into a conventional loan once you have roughly 20% equity.
What is the FHA upfront MIP?
A one-time premium of 1.75% of the base loan amount, paid at closing or — as most buyers do — financed into the loan. On a $337,750 base loan that is $5,910.63, which raises the balance you pay interest on.
What are the FHA annual MIP rates in 2026?
For 30-year loans at or under the $726,200 threshold, 0.50% of the loan balance per year with 5% or more down and 0.55% below that (HUD ML 2023-05 schedule). Terms of 15 years or less run 0.15%–0.40%, and larger loans pay 0.70%–0.75%. The calculator picks the rate automatically from your inputs.
Can I cancel FHA MIP at 20% equity like PMI?
No. Conventional PMI cancels around 20–22% equity, but FHA annual MIP on a low-down-payment loan runs for the full term no matter how much equity you build. That is why many FHA borrowers refinance to conventional once they reach 20% equity and rates cooperate.
What down payment does an FHA loan require?
3.5% of the purchase price with a credit score of 580 or higher; scores of 500–579 require 10% down. Down-payment gifts from family are allowed, which is one reason FHA is popular with first-time buyers.