FHA Loan Calculator
Calculate your FHA monthly payment including upfront and annual MIP
What is an FHA Loan Calculator?
An FHA loan calculator computes the monthly payment for Federal Housing Administration (FHA) loans, including the upfront and annual mortgage insurance premiums (MIP). FHA loans are designed for first-time buyers with lower down payments.
How It Works
Enter Home Price and Down Payment
FHA allows down payments as low as 3.5%. Enter your home price and planned down payment amount.
Select Loan Term and Interest Rate
Choose between 15 and 30-year terms. Enter your expected interest rate from an FHA-approved lender.
Add Property Tax and Insurance
Include property tax rate (varies by state) and annual home insurance cost for complete PITI calculation.
Decide on Upfront MIP
Choose whether to pay the 1.75% upfront MIP at closing or roll it into your loan. Rolling increases your balance but reduces closing costs.
Review Monthly Payment
Your total monthly PITIMI includes principal, interest, taxes, insurance, and monthly MIP (Mortgage Insurance Premium).
Formula Explanation
Monthly Payment (PITI+MIP)
Variables:
M — Total monthly payment P — Loan principal after upfront MIP r — Monthly interest rate n — Total number of payments Monthly MIP — Annual MIP ÷ 12 Upfront MIP (UFMIP)
Variables:
UFMIP — Upfront mortgage insurance premium Base Loan — Loan amount before UFMIP Real-World Examples
$350,000 Home with 3.5% Down Payment
Input Values
Results
With 3.5% down ($12,250), your base FHA loan is $337,750. Upfront MIP of 1.75% adds $5,910.
$280,000 Home with 10% Down Payment
Input Values
Results
With 10% down, your annual MIP rate drops to 0.45% and MIP cancels after 11 years instead of the life of the loan.
High-Cost Area: $600,000 Home with FHA Loan Limit
Input Values
Results
In high-cost areas, FHA loan limits can reach $1,089,300. The upfront MIP of $10,133 can be rolled into the loan.
Common Mistakes to Avoid
Forgetting about upfront MIP
FHA loans charge 1.75% upfront MIP that can be rolled into the loan. On a $300,000 loan, that's $5,250 added to your balance.
Not comparing FHA MIP to conventional PMI
FHA annual MIP ranges from 0.45-1.05% of loan amount. Conventional PMI is often cheaper with 20% down and good credit.
Assuming MIP goes away like PMI
With less than 10% down, FHA MIP lasts the life of the loan. Conventional PMI can be cancelled at 20% equity.
Not checking FHA loan limits
FHA loan limits vary by county and can be as low as $420,680 in some areas.
Pro Tips
FHA loans require a 580+ credit score for best rates with 3.5% down
Upfront MIP can be rolled into your loan to reduce closing costs
Annual MIP rates vary - compare with conventional PMI costs
FHA loans are assumable - helpful when selling to buyers with less cash
Streamline refi available if your FHA loan is currently owned by FHA
Property must meet FHA minimum property standards
Seller can contribute up to 6% of sale price toward closing costs
Last updated: May 29, 2026
Understanding FHA Loans and MIP
FHA loans are mortgages backed by the Federal Housing Administration, designed to make homeownership more accessible for first-time buyers and those with less-than-perfect credit. Unlike conventional mortgages, FHA loans require mortgage insurance premium (MIP), which protects the lender if you default on the loan.
Upfront MIP (UFMIP): FHA requires a one-time upfront mortgage insurance premium of 1.75% of your base loan amount. This can be paid at closing or rolled into your loan balance. If you roll it in, it increases your total loan amount but requires less cash upfront.
Annual MIP: In addition to the upfront MIP, you'll pay annual MIP divided into monthly installments. The rate depends on your loan amount, down payment percentage, and loan term. For a 30-year base loan at or below $726,200 with less than 5% down, the annual MIP rate is 0.55% of the base loan amount. This adds significant cost to your monthly payment compared to conventional loans.
MIP Duration: If you put less than 10% down, you'll pay MIP for the life of your loan. If you put 10% or more down, MIP cancels after 11 years. This is a major consideration when comparing FHA vs conventional — with conventional loans, PMI (similar to MIP) typically cancels automatically when you reach 20% equity.
FHA Loan Limits: FHA sets maximum loan limits that vary by county. In 2026, the standard floor is $541,287 for most counties, but high-cost areas like New York City, Los Angeles, and Honolulu have limits up to $1,249,125. If you need a loan above the limit for your area, a different loan product may be needed; FHA does not offer loans above the applicable limit.
Who should use FHA: FHA loans are best for buyers with credit scores below 620, those with limited savings for down payment (as low as 3.5%), or those who can't qualify for conventional financing. If you have excellent credit (720+) and can put 20% down, a conventional loan will likely be cheaper long-term since you can avoid MIP entirely.
FHA vs Other Loan Types
| Feature | FHA | Conventional | VA | USDA |
|---|---|---|---|---|
| Min Down Payment | 3.5% | 3% | 0% | 0% |
| Credit Score Min | 500 | 620 | 620 | 640 |
| Max Loan Limit | $1.2M+ | ~$2M+ | No limit | $700K |
| MIP/PMI Duration | Life if <10% down | Cancels at 20% equity | None | 1% annual fee |
| Best For | Low credit/small DP | Good credit/20% DP | Veterans | Rural buyers |
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Frequently Asked Questions
What is an FHA loan and how does it work?
How is FHA MIP calculated?
What credit score do I need for an FHA loan?
FHA vs conventional loan — which should I choose?
Can I use down payment assistance with an FHA loan?
FHA assumptions and official sources
These tools estimate one-unit, standard FHA forward mortgages. They do not determine approval, special-program eligibility, or an individual county's limit. The 2026 one-unit floor is $541,287 and the ordinary high-cost ceiling is $1,249,125. Special exception areas have separate ceilings. Check HUD's county and unit-count lookup before applying.
For terms over 15 years, annual MIP is 0.50% or 0.55% for base loans at or below $726,200, and 0.70% or 0.75% above that threshold, depending on whether the down payment is at least 5%. For terms up to 15 years, rates range from 0.15% to 0.65%, depending on base loan size and LTV. Initial monthly MIP is estimated as base loan × annual rate ÷ 12. Where totals are projected, MIP is held constant during its required duration; actual premiums can decline with the insured balance.
The refinance tool instead uses the lender MIP rate you enter because the required original value, endorsement date, and refund details are not available. Tax and insurance inputs are estimates, not quotes.
Sources checked 2026-09-25: HUD 2026 limits; HUD MIP tables.