FHA Loan Calculator

Calculate your FHA loan payment with automatic upfront MIP (1.75%) and annual MIP calculations. Compare FHA vs conventional to see which saves you more.

$
$3.5%
FHA requires minimum 3.5% down ($10,500)
%
$
$
FHA Monthly Payment
$2,347
$1,862 P&I + $135 MIP
Principal & Interest: $1,862
Annual MIP: $135
Property Tax: $250
Insurance: $100
Base Loan
$289,500
Upfront MIP (1.75%)
$5,066
FHA Loan Total
$294,566
Annual MIP Rate
0.55%
MIP Duration
30 years (full term)
Total Interest
$375,703
FHA MIP Note: The 1.75% upfront MIP is added to your loan balance. The 0.55% annual MIP is required for the life of the loan (LTV > 90%). To remove MIP after that, you would need to refinance into a conventional loan.

How to Use This FHA Loan Calculator

Enter your home purchase details and the calculator automatically applies current FHA MIP rates — no guessing required.

FHA Payment Tab

Enter the Home Price and Down Payment (minimum 3.5% of home price). The calculator automatically computes the 1.75% upfront MIP (financed into your loan) and the appropriate annual MIP rate based on your loan size, term, and LTV ratio. It also shows how long MIP will last.

FHA vs Conventional Tab

Enter a conventional rate for comparison. The side-by-side view shows your total monthly payment for each loan type, the cost of PMI vs MIP, and the total interest over the loan life. This helps you decide which loan is actually cheaper for your specific situation.

How FHA MIP is Calculated

Upfront MIP = Base Loan Amount × 1.75%
FHA Loan Amount = Base Loan + Upfront MIP

Annual MIP Rate (30yr, loan ≤ $726,200):
• LTV ≤ 90%: 0.50%
• LTV 90-95%: 0.50%
• LTV > 95%: 0.55%

Monthly MIP = FHA Loan Amount × Annual MIP Rate ÷ 12

MIP Duration:
• Down payment ≥ 10% (LTV ≤ 90%): 11 years
• Down payment < 10% (LTV > 90%): Full loan term

The upfront MIP is typically rolled into the loan, increasing your balance by 1.75%. This means you pay interest on the MIP for the entire loan term — another cost to factor in when comparing FHA vs conventional.

Example: First-Time Buyer in Phoenix, AZ

Maria buys a $300,000 home with 3.5% down

Home Price$300,000
Down Payment (3.5%)$10,500
Base Loan$289,500
Upfront MIP (1.75%)+$5,066 (added to loan)
FHA Loan Amount$294,566
Rate6.5% (30-year)
P&I Payment$1,861
Annual MIP (0.55%)+$135/mo
Property Tax (est.)+$250/mo
Insurance+$100/mo
Total Monthly$2,346
MIP lastsFull 30 years (LTV > 90%)

To remove MIP, Maria would need to build 20%+ equity and refinance to a conventional loan. With home price appreciation, she might be able to do this in 4-6 years.

Frequently Asked Questions

FHA MIP is mortgage insurance that protects the lender if you default. Unlike conventional PMI, FHA has two components: (1) an upfront MIP of 1.75% of the loan amount, typically added to your loan balance, and (2) an annual MIP ranging from 0.15% to 0.75% paid monthly. The FHA program allows lenders to offer loans to borrowers with lower credit scores and smaller down payments by insuring against default risk.
FHA loans have more flexible credit requirements than conventional loans. With a 580+ credit score, you qualify for the minimum 3.5% down payment. With a 500-579 credit score, you need 10% down. Scores below 500 don't qualify for FHA loans. Individual lenders may set higher minimums (often 620+) even though FHA allows lower scores.
It depends on your down payment. If you put down 10% or more (LTV of 90% or less at origination), annual MIP cancels after 11 years. If you put down less than 10%, MIP lasts for the entire loan term — this is a key difference from conventional PMI, which automatically cancels at 78% LTV. The only escape is to refinance into a conventional loan once you have sufficient equity.
FHA loan limits are set by county and updated annually. For 2024, the standard single-family limit is $498,257 in most US counties. High-cost areas (including many California, New York, and Hawaii counties) have limits up to $1,149,825. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have even higher limits. Check HUD.gov for your specific county's limits.
Yes — this is the most common way to eliminate FHA MIP permanently. Once you have at least 20% equity in your home (80% LTV or below), you can refinance into a conventional loan with no PMI. Home price appreciation counts toward your equity, so this can happen faster than expected. Use our Refinance Calculator to see if the numbers make sense.

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