FHA Loan Calculator: Monthly Payment, MIP and Down Payment
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An FHA loan lets you buy with as little as 3.5% down, but it adds mortgage insurance. On a $350,000 home with 3.5% down, the upfront premium is 1.75% of the base loan and the annual premium is 0.55% for most borrowers with a 30-year term.
A $350,000 home with 3.5% down ($12,250) gives an FHA loan of $343,661 including a $5,911 upfront premium. At 6.25% for 30 years the payment is about $2,740.71 a month in the first year.
- Principal and interest$2,115.9877%
- Mortgage insurance$153.906%
- Taxes$320.8312%
- Insurance$150.005%
Year-by-year
| Year | Interest | Principal | Annual MIP | Balance |
|---|---|---|---|---|
| 1 | $21,365 | $4,027 | $1,847 | $339,634 |
| 2 | $21,106 | $4,286 | $1,824 | $335,348 |
| 3 | $20,830 | $4,562 | $1,800 | $330,786 |
| 4 | $20,537 | $4,855 | $1,775 | $325,931 |
| 5 | $20,224 | $5,167 | $1,748 | $320,763 |
| 6 | $19,892 | $5,500 | $1,719 | $315,263 |
| 7 | $19,538 | $5,854 | $1,688 | $309,410 |
| 8 | $19,162 | $6,230 | $1,656 | $303,180 |
| 9 | $18,761 | $6,631 | $1,621 | $296,549 |
| 10 | $18,334 | $7,057 | $1,584 | $289,491 |
| 11 | $17,880 | $7,511 | $1,545 | $281,980 |
| 12 | $17,397 | $7,994 | $1,503 | $273,986 |
Annual MIP is estimated from the average balance each year. Your lender may calculate it slightly differently.
Show the steps
- Down payment: $350,000.00 × 3.50% = $12,250.00. Base loan: $337,750.00 (loan-to-value 96.50%).
- Upfront MIP: $337,750.00 × 1.75% = $5,910.63, added to the loan for a total of $343,660.63.
- Principal and interest: $343,660.63 at 6.250% over 360 months = $2,115.98 a month.
- Annual MIP rate: 0.55% for a 30-year loan, base amount $337,750 and loan-to-value 96.5%. Month one: $154.80 on the starting balance.
FHA payment
Loan = base loan + 1.75% upfront MIP (if financed)
Payment = L × r ÷ (1 − (1 + r)^−n), r = rate ÷ 12
Monthly MIP = annual MIP rate × average base balance ÷ 12
- Annual MIP rates follow HUD Mortgagee Letter 2023-05 for new FHA loans. MIP lasts 11 years when the starting loan-to-value is 90% or less, and for the life of the loan otherwise.
- Taxes, insurance and dues are estimates. Your lender sets the final figures and may require an escrow cushion.
Estimates for planning and learning, not financial, tax, legal or medical advice. Check figures with your lender, tax preparer or doctor before you act.
About this calculator
FHA loans are insured by the Federal Housing Administration and are popular with first-time buyers because they allow a small down payment and lower credit scores. In exchange, you pay two mortgage insurance premiums: a one-time upfront premium and an annual premium split into monthly payments.
This calculator adds both premiums to your payment. It applies the HUD premium table for new loans, picks the right annual rate from your loan term, loan amount and loan-to-value, and tells you whether the premium ends after 11 years or lasts for the life of the loan.
Taxes, insurance and HOA dues are estimates you can change. The result is a planning figure; your lender’s loan estimate is the final word.
How to use it
- Enter the home price and choose your credit score range. Scores of 580 or higher need 3.5% down; 500 to 579 need 10%.
- Set your down payment percentage, interest rate and loan term.
- Enter yearly property tax as a percent of the price, and yearly home insurance.
- Open the options to add HOA dues or to pay the upfront premium in cash instead of financing it.
- Read the monthly payment, the MIP breakdown and the year-by-year schedule.
FHA mortgage insurance premiums
The upfront premium is 1.75% of the base loan. Most buyers add it to the loan. The annual premium depends on the loan term, base loan amount and loan-to-value:
- Terms over 15 years, base loan up to $726,200: 0.50% with loan-to-value up to 95%, and 0.55% above 95%.
- Terms over 15 years, base loan above $726,200: 0.70% up to 95%, and 0.75% above 95%.
- Terms of 15 years or less: from 0.15% to 0.65%, depending on loan amount and loan-to-value.
Premiums last 11 years when your starting loan-to-value is 90% or less (a down payment of 10% or more). With less than 10% down, they last for the full loan term.
FHA loan limits
For 2026 the FHA limit for a one-unit home is $541,287 in most counties and up to $1,249,125 in the highest cost areas. Check your county before you shop.
FHA or conventional?
FHA often wins with a lower credit score or a small down payment. With a score near 740 and 5% or more down, a conventional loan with private mortgage insurance is often cheaper, and PMI can be removed once you reach 20% equity.
Sources
Quick check: test yourself
FHA charges an upfront premium of 1.75%. What is it on a $250,000 base loan?
Correct answer: $4,375. $250,000 × 0.0175 = $4,375.
What is the minimum FHA down payment with a credit score of 580 or higher?
Correct answer: 3.5%. With a score of 580 or higher, FHA requires 3.5% down. Scores from 500 to 579 need 10%.
On a 30-year FHA loan with 20% down, how long do you pay the annual mortgage insurance?
Correct answer: 11 years. When the starting loan-to-value is 90% or less, MIP ends after 11 years.
Pick an answer for each question.
Common questions
How much down payment does an FHA loan need?
At least 3.5% with a credit score of 580 or higher, and at least 10% with a score from 500 to 579.
How much is FHA mortgage insurance?
An upfront premium of 1.75% of the base loan plus an annual premium, usually 0.50% to 0.55% for a 30-year loan up to $726,200.
When does FHA mortgage insurance end?
After 11 years if you put 10% or more down. With less than 10% down, it lasts for the whole loan. Refinancing into a conventional loan is a common way to drop it.
Can I roll the upfront premium into the loan?
Yes. Most borrowers do. It raises the loan amount slightly, and you pay interest on it.
What is the FHA loan limit in 2026?
The floor is $541,287 and the ceiling is $1,249,125 for one-unit homes, depending on the county.
Is the payment shown exact?
No. Taxes, insurance and the exact MIP calculation vary by lender. Use this as a planning estimate.
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