FHA Loan Calculator
Compute the monthly payment on an FHA-insured home loan, including the monthly mortgage insurance premium (MIP) required on almost all FHA loans.
Last updated: September 2026
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About this calculator
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the FHA absorbs some of the credit risk, lenders can offer FHA loans with lower down payments (as little as 3.5%) and looser credit requirements (FICO scores from 580) than a conventional loan. In exchange, the borrower pays two premiums that fund the insurance: an upfront MIP (1.75% of the loan amount, usually financed into the balance) and an annual MIP (0.15–0.75% of the loan balance depending on LTV and term, paid monthly).
The annual MIP varies by loan term and initial loan-to-value ratio. For a 30-year loan with LTV over 95% (the most common case), the annual MIP is 0.55% as of 2023 policy. Prior to March 2023 it was 0.85%. This calculator lets you set the MIP percentage explicitly so you can plug in whichever rate matches your actual mortgage.
Unlike private mortgage insurance (PMI) on conventional loans, FHA MIP typically lasts for the full life of the loan when the initial down payment was under 10%. To drop MIP, you must refinance out of the FHA loan into a conventional one — usually done once the home has ≥20% equity, either through appreciation or principal reduction.
How to use
Example — a $250 000 FHA loan at 6.5% for 30 years, annual MIP 0.85%. Enter loanAmount = 250 000, rate = 6.5, termYears = 30, mip = 0.85. Principal-and-interest = 250 000 × 0.005417 × 7.019 / 6.019 ≈ $1 580.17. Monthly MIP = 250 000 × 0.0085 / 12 ≈ $177.08. Total monthly = 1 580.17 + 177.08 = $1 757.25. That is before property tax and homeowner's insurance, which are usually escrowed on top. Compare against the VA loan at /en/calculators/mortgage-advanced/va-mortgage-calculator/: for a similar $250k VA loan at 6.5% you would pay ~$1 580/month with no PMI or MIP — the ~$177/month MIP is the price of FHA's more permissive underwriting.
Frequently asked questions
How does FHA compare to a conventional mortgage?
FHA typically has: lower minimum down payment (3.5% vs 3–5% conventional), lower minimum credit score (580 vs 620–640 typical conventional), and life-of-loan MIP if under 10% down (vs PMI on conventional that drops at 80% LTV automatically). Rates can be slightly better on FHA if you have lower credit, worse if you have strong credit. Run the payment comparison at your credit tier before choosing.
What is the upfront MIP?
1.75% of the loan amount, paid at closing. Almost every borrower finances it into the loan (so a $250 000 loan becomes $254 375 after adding the upfront MIP). It shows up on the Closing Disclosure and is a one-time charge; the annual MIP paid monthly is separate.
Can I get rid of MIP?
For FHA loans originated after June 2013, if your down payment was under 10%, MIP lasts for the full loan term. To remove it you must refinance into a conventional loan, which requires 20% equity and a credit score meeting conventional underwriting. Loans with 10%+ initial down payment can drop MIP after 11 years. For loans originated pre-June 2013, older rules apply — check your specific loan.
What's the FHA loan limit?
FHA loan limits vary by county and are recalculated annually by HUD. In 2024, the 'floor' (most low-cost areas) is $498 257 for a one-unit property; the 'ceiling' (high-cost areas like San Francisco, New York) is $1 149 825. Two-, three-, and four-unit properties have higher limits. Above the county limit, an FHA loan is not available and you would need a conventional or jumbo product.