Estimate an FHA mortgage payment with the current 1.75% upfront mortgage insurance premium, the post-2023 annual MIP tiers,
and an optional escrow-style layer for property tax, homeowners insurance, and HOA dues.
Upfront MIP handling
Enter FHA purchase details Add a US home price, an FHA-eligible down payment of at least 3.5%, and an interest rate to see the payment sheet.
An FHA loan calculator should show more than a principal-and-interest payment. This page estimates the upfront mortgage insurance premium, the annual FHA MIP tier, the starting monthly housing payment, and what changes when your down payment reaches the 10% threshold that can limit MIP to 11 years instead of the full loan term.
What this FHA loan calculator is estimating
This FHA loan calculator is built for United States homebuyers comparing a Federal Housing Administration insured mortgage with other financing options. It converts the home price, down payment, rate, and term into a monthly principal-and-interest payment, then layers in FHA-specific mortgage insurance and any optional property-tax, homeowners-insurance, or HOA costs you want to budget.
That extra FHA layer matters because FHA borrowers usually pay mortgage insurance in two parts. There is an upfront mortgage insurance premium, often financed into the balance, and an annual mortgage insurance premium paid monthly. Searchers using an FHA mortgage calculator usually want to know the real monthly payment, the cash needed at closing, and whether mortgage insurance drops off after 11 years or stays for the life of the loan.
This page is explicitly scoped to US FHA purchase planning. It does not attempt to model mortgage rules outside the United States, and it does not substitute for a lender's official Loan Estimate, underwriting decision, county loan-limit check, or state-specific closing-cost worksheet.
How the FHA payment and MIP calculation works
The calculator starts with the standard fixed-rate mortgage amortization formula. It subtracts the down payment from the purchase price to find the base loan amount, applies the 1.75% upfront FHA mortgage insurance premium, and then calculates the scheduled monthly principal-and-interest payment over the selected 15-year or 30-year term.
It then applies the current post-March-2023 annual FHA mortgage insurance tiers. For standard-size 30-year loans, annual MIP is typically 0.55% when the starting loan-to-value ratio is above 95% and 0.50% when the starting LTV is 95% or lower. Larger base loans move into a higher annual MIP bracket, and shorter 15-year FHA loans use a different set of annual MIP tiers.
Duration matters as much as the rate. If the starting LTV is above 90%, FHA annual MIP generally lasts for the full loan term. If the starting LTV is 90% or lower, annual MIP generally lasts 11 years. That is why a 10% down payment can materially change the long-run cost even when the starting monthly payment still looks similar.
Base loan amount = home price − down payment
The starting FHA mortgage amount before any financed upfront mortgage insurance premium is added.
Upfront MIP = base loan amount × 1.75%
The standard FHA upfront mortgage insurance premium that can either be financed into the mortgage or paid in cash at closing.
M = P × r / (1 − (1 + r)^−n)
Standard fixed-rate mortgage formula where M is the monthly principal-and-interest payment, P is the financed loan amount, r is the monthly interest rate, and n is the number of monthly payments.
CFPB FHA loan guide — Official CFPB consumer guidance explaining who FHA loans are for and why mortgage insurance changes the total cost.
Worked example: 350,000 home with 10% down
Suppose a buyer enters a 350,000 purchase price, a 10% down payment, a 30-year term, and a 6.25% rate. The down payment is 35,000 and the base loan amount is 315,000. If the borrower pays the 1.75% upfront MIP in cash, the financed mortgage remains 315,000. If the borrower finances it instead, the starting balance rises by 5,512.50 before the first scheduled payment is calculated.
At a 10% down payment, the starting LTV is 90%, so the annual FHA MIP is modeled with an 11-year duration instead of the full 30-year term. That means the calculator shows two important monthly numbers: the higher payment while annual MIP is still active, and the lower payment after the MIP period ends. Borrowers who only compare the first payment can miss that step-down.
This is also why FHA versus conventional comparisons need more than the note rate alone. FHA can be attractive when the borrower has a smaller down payment, weaker credit profile, or wants a lower entry barrier. But the mortgage insurance structure can still make the total cost higher over time, especially if the borrower never refinances out of the FHA loan.
What this FHA mortgage estimate does not cover
This page is a planning estimate, not a full underwriting model. It does not check whether the property sits under the FHA county loan limit for the specific location, whether the borrower meets FHA credit and debt-to-income rules, or whether gift funds, seller concessions, or down-payment assistance change the real closing worksheet.
It also does not model every homeownership cost. Origination charges, lender credits, discount points, title fees, recording fees, prepaid items, state transfer taxes, flood insurance, and escrow setup costs can all change the real cash needed at closing. The optional tax, insurance, and HOA fields are there to make the monthly budget more realistic, but they do not replace a lender disclosure package.
Finally, this tool assumes a fixed interest rate for the full loan term. It does not model refinancing decisions, adjustable-rate FHA products, streamlined refinance timing, or what happens if the borrower prepays aggressively and removes the loan before the scheduled MIP end point.
Frequently asked questions
Is FHA mortgage insurance the same as PMI?
No. FHA loans use mortgage insurance premiums, or MIP, while many conventional loans use private mortgage insurance, or PMI. Both protect the lender, but the pricing, cancellation rules, and closing-cost treatment are different. FHA always uses an upfront MIP plus annual MIP, whereas conventional PMI typically has different cancellation rules and no FHA-style upfront premium.
When does FHA mortgage insurance end?
For current FHA purchase loans, annual MIP generally lasts for the full loan term when the starting loan-to-value ratio is above 90%. When the starting LTV is 90% or lower, annual MIP generally lasts 11 years. That is why a 10% down payment can materially reduce the long-run cost even if the first-year payment still includes mortgage insurance.
Can I finance the upfront FHA MIP into the mortgage?
Usually yes. Many FHA borrowers finance the 1.75% upfront mortgage insurance premium into the loan balance instead of paying it in cash at closing. Doing that reduces the cash needed upfront, but it raises the financed balance and usually increases the principal-and-interest cost over time because you are paying interest on that financed premium too.
Does this calculator tell me whether I qualify for an FHA loan?
No. It estimates the payment shape only. Real qualification depends on credit score, debt-to-income ratio, employment history, appraisal results, county loan limits, occupancy rules, assets to close, and lender overlays. Use this page to plan, then confirm the actual numbers with your lender's Loan Estimate and underwriting review.
