FHA Loan Calculator
Estimate your monthly FHA mortgage payment, including the upfront and annual mortgage insurance premium (MIP) that comes with every FHA loan.
How FHA Mortgage Insurance Works
FHA loans let you buy with as little as 3.5% down and accept credit scores as low as 580 — but in exchange, every FHA loan carries mortgage insurance premium (MIP), split into two parts. The upfront MIP is a one-time 1.75% charge on your loan amount, almost always rolled into the loan itself rather than paid in cash at closing. On a $300,000 loan, that’s $5,250 added to your balance.
The annual MIP is the ongoing part — 0.55% per year for most 30-year borrowers, split into monthly installments and added to your mortgage payment. On that same $300,000 loan, annual MIP runs about $137.50 a month. Unlike conventional PMI, which cancels automatically once you reach 20% equity, FHA’s annual MIP behaves differently: if you put down less than 10%, you pay it for the entire life of the loan. Put down 10% or more, and it drops off after 11 years.
This is the single biggest long-term cost difference between FHA and conventional loans — FHA is easier to qualify for, but MIP that never cancels (on low down payments) can add up to tens of thousands of dollars over a 30-year term. Many FHA borrowers refinance into a conventional loan once their credit and equity improve, specifically to shed MIP for good.
Frequently Asked Questions
Can I ever remove FHA mortgage insurance?
Only by putting down 10% or more (MIP ends after 11 years) or by refinancing into a conventional loan once you have enough equity and credit to qualify. With less than 10% down, MIP lasts the entire loan term otherwise.
Is the upfront MIP paid in cash or financed?
Most borrowers finance it into the loan balance, which is why this calculator adds it to your loan amount automatically. You can pay it upfront in cash at closing instead if you’d rather not finance it and pay interest on it.
How does FHA MIP compare to conventional PMI?
Conventional PMI rates vary by credit score and can be lower for strong-credit borrowers, and it cancels automatically at 78% loan-to-value. FHA MIP is a fixed rate regardless of credit score, which helps lower-credit borrowers, but it often can’t be cancelled without refinancing.
What credit score do I need for an FHA loan?
You can qualify with a credit score as low as 500 with 10% down, or 580 with the minimum 3.5% down payment — significantly more flexible than most conventional loan requirements.