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FHA Loan Calculator

While popular, one of the main drawbacks to an FHA loan is the compulsory mortgage insurance.

This includes both an upfront mortgage insurance premium (UFMIP) and an annual premium, paid monthly.

The upfront premium is typically financed into the loan amount (so you actually pay interest on it for as long as you keep your loan).

And the annual insurance premium is also often paid for the entire life of the loan, not canceled at 80% LTV like private mortgage insurance on conventional loans.

The only exception is if you put down at least 10%, which isn’t common for your average FHA home buyer. In that case, you only pay MIP for 11 years (still a long time!).

The main draw to the FHA loan program is the flagship 3.5% minimum down payment, so chances are you’re paying insurance “for life.”

Still, an FHA loan can be a better option than a conventional loan depending on your credit scores and other loan attributes.

If you’re curious what the insurance costs will look like, try out my FHA loan calculator.

FHA Loan Calculator

Estimate your monthly FHA payment including mortgage insurance, using current HUD MIP rates. See your full cost breakdown and amortization schedule.

Loan Details

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Mortgage Insurance

Annual MIP: —  ·  Duration: —
💡 Your full housing payment will also include property taxes, homeowner’s insurance, and any HOA dues — factor those in when budgeting your monthly costs.
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Total Cost Breakdown

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Amortization Schedule

Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, legal, or tax advice. MIP rates and the $726,200 base-loan-amount threshold between standard and high-balance pricing are per HUD Mortgagee Letter 2023-05 (effective March 20, 2023) as currently confirmed by HUD’s published FAQ (answers.hud.gov); this dollar threshold has not been updated since 2023 and is not automatically tied to the annual conforming loan limit adjustment despite the letter’s original language, so it should be periodically re-verified against HUD’s current guidance in case that changes. Annual MIP is not a flat dollar amount for the life of the loan — per HUD’s published calculation method (hud.gov/hud-partners/housing-premium-calculation), each 12-month period is based on that year’s average outstanding balance (the beginning-of-month balance across the original amortization schedule), so your MIP payment steps down slightly every year, which this calculator reflects; it is recalculated once per 12-month period, not continuously every month. This calculator does not model the additional HUD adjustment applied when upfront MIP is financed (dividing the annual premium by one plus the upfront MIP factor), which would very slightly lower the figures shown if UFMIP was rolled into the loan. Results are estimates and may not reflect actual loan terms, fees, or outcomes. Consult a licensed mortgage professional before making any financial decisions.

It will give you all the key details like the upfront MIP, calculated automatically based on purchase price and down payment.

And calculate the annual MIP automatically, using the latest FHA MIP from Mortgagee Letter 2023-05.

You’ll be notified if the MIP is in place for just 11 years (in the case of a 10%+ down payment), or for the full loan term with a smaller down payment (e.g. 15 or 30 years).

You’ll then see your combined monthly mortgage payment, including principal, interest, and mortgage insurance.

[Searching for a home loan? See your options with dozens of lenders fast.]

There are optional fields to add monthly property taxes, homeowners insurance, and HOA dues if applicable. If you know these, you can add them manually and your monthly total will update automatically.

The calculator provides the total MIP cost, including the upfront premium and total of all the annual premiums, assuming the loan is held to term.

In addition, a handy loan amortization schedule displays the cost of mortgage insurance each month (it goes down each month as the loan is repaid and the balance falls).

Chances are you won’t keep your FHA loan for the full 30 years, assuming you go with a 30-year fixed.

You might sell the property or refinance the loan before then, with a common strategy being an FHA-to-conventional refinance to remove mortgage insurance early.

Colin Robertson
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