Quick answer
An FHA loan calculator works out your real monthly payment on an FHA-insured mortgage: principal and interest, both mortgage insurance premiums, tax and insurance. On a $350,000 home with 3.5% down at 6.5% over 30 years, the payment is $2,795 a month — $2,172 of principal and interest, $157 of monthly MIP, plus tax and insurance.
How the FHA Loan Calculator works, step by step
Enter the home price, down payment, rate and term. The calculator works out the base loan (price minus down payment), then adds the upfront mortgage insurance premium (UFMIP) of 1.75% of the base loan. On the $350,000 example the base loan is $337,750, the UFMIP is $5,911, and the amount amortised is $343,661.
The annual MIP rate comes from HUD's table in Mortgagee Letter 2023-05, set by term, loan-to-value and loan size. On terms over 15 years with a base loan at or below the 2026 conforming limit of $832,750, the rate is 0.50% a year up to 95% LTV and 0.55% above it; over that limit it is 0.70% or 0.75%. A 15-year loan pays just 0.15% to 0.40%.
Monthly MIP is not a flat figure. HUD charges each year's premium on the average outstanding balance for that year, so the monthly amount falls as the balance amortises. In the example the year-1 monthly MIP is $157 at 0.55%, and total MIP over 30 years is $37,000 — well under the $55,729 a flat estimate would give.
How long MIP lasts depends on the down payment. Under 10% down it runs for the life of the loan; at 10% or more it ends after 11 years. On this home, 10% down cuts the rate to 0.50% and caps total MIP at $16,277 over 11 years, against $37,000 for life at 3.5% down. Refinancing into a conventional loan is the only way to drop MIP early when it runs for life.
FHA also caps the loan by county. For 2026 the national floor is $541,287 and the ceiling is $1,249,125 for a one-unit home, set by Mortgagee Letter 2025-23; your county's limit sits between the two. The minimum down payment is 3.5% with credit of 580 or higher, or 10% with credit of 500 to 579.
The formula
Base loan = price − down payment; UFMIP = 1.75% × base loan; total loan = base loan + UFMIP when financed. Monthly principal and interest = total loan × [r(1 + r)^n] ÷ [(1 + r)^n − 1], where r is the monthly rate and n the number of payments. Annual MIP each year = rate × that year's average balance, ÷ 12 monthly. Total monthly = principal and interest + monthly MIP + tax ÷ 12 + insurance ÷ 12 + HOA.
Worked example — try it on the calculator above
Worked example: $350,000 home, 3.5% down at 6.5% for 30 years
Down payment: 3.5% of $350,000 = $12,250; base loan $337,750 at 96.5% loan-to-value. UFMIP: 1.75% of $337,750 = $5,910.63, financed for a total loan of $343,660.63. Principal and interest at 6.5% over 360 payments: $2,172.17 a month. Annual MIP at 0.55% on the year-1 average balance of $341,740.04: $1,879.57 a year, or $156.63 a month. Tax of $3,850 a year adds $320.83, insurance of $1,750 adds $145.83. Total monthly payment: $2,795.47. Over the loan, total MIP is $36,999.74 and total interest $438,320.57. Paying the UFMIP in cash would cut principal and interest to $2,134.81, saving $37.36 a month.
Frequently Asked Questions
How long do I pay FHA mortgage insurance?
It depends on your down payment. With less than 10% down, annual MIP runs for the life of the loan on loans with case numbers assigned on or after June 3, 2013 — it never cancels on its own. With 10% or more down, it ends after 11 years. The upfront premium is a one-time charge at closing, so only the annual premium has a duration to worry about.
What is the difference between UFMIP and annual MIP?
UFMIP is a one-time charge of 1.75% of the base loan, paid at closing or — far more commonly — financed into the loan balance. Annual MIP is an ongoing charge, 0.15% to 0.75% a year depending on term, loan-to-value and loan size, paid monthly. On a $337,750 base loan the UFMIP is $5,911 once, and the annual MIP at 0.55% costs about $157 a month in year one.
Can I remove FHA MIP without refinancing?
Only if your down payment was 10% or more, in which case annual MIP ends automatically after 11 years. With less than 10% down, MIP runs for the life of the loan and the only way out is to refinance into a conventional loan — which needs enough equity (usually 20% to avoid PMI) and a credit profile a conventional lender accepts. An FHA streamline refinance keeps MIP in place; it never removes it.
What are the 2026 FHA loan limits?
For a one-unit home, the 2026 national floor is $541,287 in low-cost counties and the ceiling is $1,249,125 in high-cost counties, set by HUD Mortgagee Letter 2025-23. Your county's limit falls somewhere between the two and applies to the base loan, before any financed upfront MIP. Alaska, Hawaii, Guam and the U.S. Virgin Islands have a higher special-exception ceiling of $1,873,625.
Estimates, not advice. This calculator provides educational estimates based on the inputs you enter and the assumptions shown on this page. It is not financial, tax or investment advice, and it cannot see your full situation. Verify important figures against official sources, and consider a qualified professional for decisions about your own money. See our Disclaimer and Methodology.