How to use this calculator
- Enter or choose home price.
- Enter or choose down payment.
- Enter or choose interest rate (per year).
- Enter or choose loan term.
- Enter or choose upfront MIP.
- The total monthly payment updates as you type. Use Copy result or Share to keep it.
Method
Base loan B = Price × (1 − Down%); UFMIP = 1.75% × B; Loan L = B + UFMIP (if financed); P&I = PMT(L, rate ÷ 12, n); Monthly MIP ≈ B × annual MIP rate ÷ 12
- B
- base loan amount before the upfront premium
- annual MIP rate
- from HUD’s table by term (over 15 years or not), base loan amount (above or below $726,200) and loan-to-value
- n
- term in months
Worked example
- Base loan = 300,000 × 96.5% = $289,500 (LTV 96.5%); upfront MIP = 1.75% × 289,500 = $5,066.25, added to give a $294,566.25 loan.
- P&I on $294,566.25 at 6.5% over 360 months = $1,861.86.
- A 30-year loan at 96.5% LTV under $726,200 pays 0.55% a year: 289,500 × 0.55% ÷ 12 = $132.69 a month, for the life of the loan.
- Tax and insurance = (3,000 + 1,200) ÷ 12 = $350, so the total is $2,344.55.
With 3.5% down on a $300,000 home, the FHA payment is about $2,345 a month, of which $132.69 is mortgage insurance.
What the result means
With less than 10% down, the annual MIP stays for the whole loan; the usual way to remove it is to refinance into a conventional loan once you have enough equity. Compare the total monthly payment with a conventional quote that includes private mortgage insurance.
Assumptions and limits
- MIP rates are HUD’s schedule in Mortgagee Letter 2023-05 for forward mortgages endorsed on or after 20 March 2023 (standard purchase loans; streamline refinances and Hawaiian Home Lands loans differ).
- Monthly MIP is estimated on the base loan amount; lenders recalculate it each year on the average outstanding balance, so it falls slowly over time.
- Fixed-rate loan with level monthly payments.
- FHA loan limits, credit-score rules for the minimum down payment, and lender overlays are not checked.
- Closing costs and HOA special assessments are not included.
- Jurisdiction
- United States
- Rates effective from
- 20 March 2023
- Authority
- US Department of Housing and Urban Development (FHA)
- Rates last checked
- 29 October 2026
Questions
How long do I pay FHA mortgage insurance?
Under HUD’s current table, 11 years if your loan-to-value at the start is 90% or less, and for the life of the loan if it is above 90%.
Can I pay the upfront MIP in cash?
Yes. Paying it at closing keeps the loan amount lower; most borrowers add it to the loan instead. Switch the option to compare.
Sources
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.