FHA Loan Calculator: Payment With Upfront and Monthly MIP

Name: FHA Loan Calculator: Payment With Upfront and Monthly MIP
Author: Acun Özdilek

This FHA loan calculator gives the whole monthly payment with both FHA mortgage insurance premiums included: the upfront one added to the loan and the monthly one.

Example numbers

The answerfrom an example

An FHA loan on this home costs $2,418.88 a month, including $132.02 of mortgage insurance that lasts the life of the loan.

Worked on $300,000 home, 3.5% down, 6.50% over 30 years. Change anything below to use yours.

Base loan: $289,500
Upfront MIP: $5,066
Loan amount: $294,566

The figures behind it

Base loan: $289,500; 96.50% of the price: the LTV FHA prices insurance on.
Upfront MIP: $5,066; 1.75% of the base loan, added to it.
Loan amount: $294,566; Base loan plus the upfront premium. Principal and interest are paid on this.
Annual MIP rate: 0.55%; Set by the term, the LTV and the size of the base loan.
MIP lasts: Life of the loan; Ends only when you refinance or pay off the loan.
Mortgage insurance paid: $36,310; Upfront and monthly premiums over the whole term.
Total interest: $375,702; Over the life of the loan, on top of the amount borrowed.

Monthly payment$2,418.88

77%

Principal & interestThe loan payment, on the base loan plus the financed upfront premium.$1,862
Mortgage insurance (MIP)The first year’s monthly premium. It falls a little each anniversary and lasts the life of the loan.$132
Property taxEscrowed and paid on your behalf.$275
Home insuranceAlso escrowed.$150

What you still owe, and what FHA insurance has cost

Years from today

Balance remainingMortgage insurance paid to date

Hover or tap the chart to read any year.

Payment scheduleShow

Year	Interest	Principal	MIP	Balance	All-in payment
1	$1,579	$283	$132	$291,274	$2,419
2	$1,560	$302	$130	$287,761	$2,417
3	$1,540	$322	$129	$284,013	$2,416
4	$1,519	$343	$127	$280,013	$2,414
5	$1,496	$366	$125	$275,746	$2,412
6	$1,471	$391	$123	$271,193	$2,410
7	$1,445	$417	$121	$266,336	$2,408
8	$1,417	$445	$119	$261,153	$2,406
9	$1,387	$475	$117	$255,622	$2,403
10	$1,355	$506	$114	$249,722	$2,401
11	$1,321	$540	$111	$243,426	$2,398
12	$1,285	$577	$108	$236,709	$2,395
13	$1,247	$615	$105	$229,541	$2,392
14	$1,205	$656	$102	$221,894	$2,389
15	$1,162	$700	$98	$213,734	$2,385
16	$1,115	$747	$95	$205,029	$2,381
17	$1,065	$797	$90	$195,740	$2,377
18	$1,011	$851	$86	$185,828	$2,373
19	$954	$908	$82	$175,254	$2,368
20	$893	$968	$77	$163,971	$2,364
21	$829	$1,033	$71	$151,932	$2,358
22	$759	$1,103	$66	$139,087	$2,353
23	$686	$1,176	$60	$125,382	$2,347
24	$607	$1,255	$53	$110,759	$2,340
25	$523	$1,339	$47	$95,156	$2,334
26	$433	$1,429	$39	$78,509	$2,326
27	$337	$1,525	$32	$60,747	$2,319
28	$235	$1,627	$24	$41,795	$2,310
29	$126	$1,736	$15	$21,574	$2,302
30	$10	$1,851	$5	$0	$2,291

What this result assumes

Monthly MIP is the annual rate times the average scheduled balance for each loan year, leaving out the part of the balance that is the financed upfront premium, divided by twelve. It is level for 12 months and steps down on each anniversary.
Property tax is held at a fixed share of the purchase price and insurance at a fixed dollar amount. Both rise over time in reality, so the later years understate the true payment.

On a $300,000 home with the minimum down payment and a 30-year loan, that is about $2,419 a month, of which $132 is mortgage insurance that stays for the life of the loan unless you refinance or pay the loan off. Put 10% or more down and it stops after 11 years.

Methodology

Reviewed October 6, 2026 by Acun Özdilek

Upfront MIP

FHA charges an upfront mortgage insurance premium of 1.75% of the base loan, the price less your down payment. You can pay it at closing or add it to the loan. This calculator adds it, so you pay interest on it. On the default $300,000 home with 3.5% down, the base loan is $289,500, the upfront premium is $5,066 and the loan you repay is $294,566.

The monthly principal and interest is the standard amortization formula, M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1], on that full loan amount, with interest rounded to the cent each month. The amortization calculator shows the same schedule without the insurance and escrow.

Annual MIP

The annual rate depends on three things: whether the term is 15 years or less, the loan-to-value ratio (base loan ÷ price), and whether the base loan is above $726,200. A 30-year loan at 3.5% down pays 0.55% a year.

HUD charges that rate on the average scheduled balance for each loan year, leaving out the part of the balance that is the financed upfront premium. So monthly MIP = rate × average balance × (base loan ÷ total loan) ÷ 12. It stays level for 12 months and falls a little at each anniversary. On the default example the first year’s MIP is $132.02 a month, for an all-in payment of $2,418.88.

How long it lasts

If the base loan is 90% of the price or less (10% or more down), annual MIP stops after 11 years. Above that, it is charged for the life of the loan and ends only when you refinance or pay the loan off.

Figures checked 2026-10-06.

Assumptions

LTV uses the purchase price and assumes the appraisal is at least the price.
FHA county loan limits are not applied.
The larger down payment required at lower credit scores is not modelled.
The upfront premium is assumed to be financed. Lenders round the financed total down to whole dollars, and that difference of under $1 is ignored.
Each loan year’s average uses start-of-month balances on the original schedule, with month 1 as the start of the first policy year.
Streamline refinances and condo or manufactured-home rules are not modelled.
Property tax and insurance do not escalate. Closing costs are excluded. The rate is fixed for the whole term.

Sources

Common questions

How is FHA mortgage insurance calculated?

There are two premiums. The upfront one is 1.75% of the base loan and can be paid at closing or added to the loan. The annual one is a rate set by term, down payment and loan size, charged on each loan year’s average balance without the financed upfront premium, and collected monthly. On a $300,000 home with 3.5% down at 6.5% over 30 years, that is $132.02 a month in the first year, inside an all-in payment of $2,418.88.

Can you get rid of FHA mortgage insurance?

With 10% or more down, annual MIP stops after 11 years. With less down it lasts for the life of the loan unless you refinance or pay the loan off. A refinance into a conventional loan is one route once you have enough equity. The refinance calculator shows whether a refinance pays for itself.

Is the upfront MIP paid at closing or added to the loan?

Either. This calculator adds it to the loan: on the default example the $5,066 premium turns a $289,500 base loan into a $294,566 loan, and you pay interest on the added amount.

Is an FHA loan cheaper than a conventional loan?

It depends on your down payment and credit score. FHA insurance pricing ignores credit score, while conventional private mortgage insurance is priced on it and can be cancelled once you build equity. Compare the same price in the mortgage calculator, which prices conventional PMI.

Does a 15-year FHA loan have lower mortgage insurance?

Yes. At 3.5% down the annual rate is 0.40% on a 15-year loan against 0.55% on a 30-year one, so on the default $300,000 home the first year’s MIP drops from $132.02 to $94.72 a month. The principal and interest payment is much higher, though.

How much can I borrow with an FHA loan?

FHA sets a maximum loan for each county, which this calculator does not apply. What you can borrow in practice depends on your income and debts; the home affordability calculator works that out.

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Result