FHA Mortgage Insurance Calculator: See Your Upfront and Monthly Premiums

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By Mariia Kislitsyna Updated October 7, 2025
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Edited by Amber Taufen

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An FHA mortgage insurance premium (MIP) calculator is an essential tool for anyone considering an FHA loan. It helps you estimate your total monthly mortgage payment beyond just principal and interest.

An FHA loan requires a special type of mortgage insurance called a mortgage insurance premium (MIP). This isn’t a single fee, but rather is made up of two parts:

  1. Upfront MIP (UFMIP): Also known as an upfront premium, it’s a one-time charge that equals 1.75% of your base loan amount. Typically, you can pay UFMIP at closing on a loan or finance it by adding it to your loan balance.
  2. Annual MIP: A recurring charge paid monthly, either for the first 11 years or the entire life of the loan. The rate depends on your loan amount, term, and down payment. 

This calculator can give you a realistic preview of your total monthly housing costs, allowing you to budget more effectively.

How FHA MIP is calculated

As mentioned above, MIP consists of two parts, each of which is calculated differently.

Upfront MIP

An upfront MIP is a straightforward, one-time fee of 1.75% of your loan amount. For example, on a $300,000 loan, your UFMIP would be $5,250 ($300,000 x 1.75%). You can pay it at closing or add it to your loan balance, making your total loan $305,250.

Annual MIP

This premium is calculated yearly and divided into 12 monthly payments. The rate can be anywhere from 0.15% to 0.75%, depending on your loan amount, term, and down payment. 

For example, for a $300,000 loan and a down payment of less than 5%, the annual rate is typically 0.55%. This results in monthly MIP payments of $137.50 ($300,000 x 0.55% / 12).

Quick note on PMI vs. MIP terminology

While searching for information on FHA loans, you may see the terms “PMI” and “MIP” used almost interchangeably. However, the correct term for insurance on an FHA loan is mortgage insurance premium (MIP).  

Private mortgage insurance (PMI) is the term used for mortgage insurance on conventional loans, and it’s often required when the down payment is less than 20%.

  FHA Loan & Funding Fee Calculator
 
1. Sales Price
2. Down Payment % =
3. Term
4. FHA Maximum Mortgage Amount
5. Base Mortgage Amount  
6. FHA Funding Fee (UFMIP) +  
7. Mortgage Amount (Final) =  
 
  Monthly Mortgage Payment
8. Principal & Interest  
9. Annual Real Estate Taxes  
10. Annual homeowner's insurance  
11. Other  
12. FHA MIP =  
13. MONTHLY MORTGAGE PAYMENT =  
 
  Based on January 9, 2015 change  
 

The FHA monthly mortgage insurance premium is illustrated below. It may seem confusing, but if you follow along, you'll see that it's pretty simple. The base loan amount is the amount you will borrow. Column two is the down payment percentage. LTV is short for loan to value. In other words, how much is the loan amount when compared to the purchase price or appraised value. If you use the minimum down payment (3.5%) and the sales price is $100,000. The loan to value is 96.5% ($100,000 - 3.5%).

The Annual MIP is the cost percentage based on the down payment (or LTV). If the loan amount is less than or equal to $625,000 with a minimum down payment (3.5%), the Annual MIP cost is .85% (30-year loan). Here's the monthly FHA MIP calculation:

Example:
Loan Amount = $100,000
X .85%
= $850.00
divided by 12 months = $70.83 monthly cost

The FHA does not use the credit score as a factor with the monthly mortgage insurance cost.

  Monthly Mortgage Insurance (MIP) Calculation
Loan Term greater than 15-years (i.e 30-years)
  Base Loan Amount LTV Effective Annual MIP  
≤ $625,500 ≤ 95.00% 1/26/2015 0.80%  
≤ $625,500 > 95.00% 1/26/2015 0.85%  
> $625,500 ≤ 95.00% 1/26/2015 1.00%  
> $625,500 > 95.00% 1/26/2015 1.05%  
Loan term less than or equal to 15-years with loan to value above 78%
  Base Loan Amount LTV Effective Annual MIP  
Any loan amount < 78.00% 6/3/2013 0.45%  
≤ $625,500 78.01% - 90.00% 4/1/2013 0.45%  
≤ $625,500 > 90.00% 4/1/2013 0.70%  
> $625,500 78.01% - 90.00% 4/1/2013 0.70%  
> $625,500 > 90.00% 4/1/2013 0.95%  
 

Factors that affect your FHA MIP rate

When calculating the insurance payments for an FHA loan, keep in mind that several key factors influence your final rate.

Down payment size

A small down payment means a higher loan-to-value (LTV) ratio, which presents a greater risk to the lender. A larger down payment can reduce your MIP rate and payment duration. If you make a down payment of 10% or more, you’ll only pay MIP for the first 11 years of your loan term.

Loan term

The length of your loan is another factor that can impact your MIP. Shorter-term loans, such as 15-year mortgages, may have slightly lower MIP rates compared to 30-year mortgages. This is because home equity builds faster in shorter-term loans.

Loan amount

The total loan amount plays a significant role in determining your MIP rate. First, the FHA has specific thresholds, and loans exceeding them may result in higher MIP. Also, all FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the base loan amount — the larger your loan, the higher the UFMIP payment will be.

FHA MIP removal rules

Some homeowners may be able to remove MIP; however, it depends on your original down payment:

  • If you put down 10% or more: You will pay MIP for only the first 11 years of your loan. After 11 years, the MIP will be cancelled automatically.
  • If you put down less than 10%: You’re required to pay MIP throughout the entire loan term loan. The only ways to remove it are to sell the home or refinance into a different loan type. 

The most common strategy to cancel your MIP is to refinance to a conventional loan. To do that, you’ll typically need to have at least 20% equity in your home. If approved, the new loan will pay off your FHA loan, removing the need for MIP. And, since conventional loans don’t require PMI with at least 20% equity, you won’t have that monthly expense, either.

FHA MIP vs. conventional PMI 

While both FHA and conventional loans require mortgage insurance with low down payments, their rules differ significantly.

Conventional loans use private mortgage insurance (PMI). It is not required if you put down 20% or more. Otherwise, you can request to remove PMI once you have 20% equity in your property. Furthermore, loan servicers are required to cancel PMI automatically when your balance drops to 78% (if you’re current on your payments).

FHA loans use a Mortgage Insurance Premium (MIP), and the rules are stricter. MIP can only be removed automatically for those homeowners who put down 10% or more. Otherwise, the only way to get rid of it is to refinance your loan.

FeatureConventional PMIFHA MIP
Upfront feeNoYes (1.75% of loan amount)
FrequencyMonthlyMonthly
RemovalTypically removed at 20% equityLasts 11 years or the full loan term; can be cancelled after 11 years only if the initial down payment was 10% or more
FlexibilityMore flexible cancellationLess flexible, removal often requires refinancing
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Taxes and insurance in FHA payments

While our MIP calculator focuses on your mortgage insurance premium, it is important to remember that your total monthly housing payment includes more than just principal, interest, and MIP. Other common components include property taxes and homeowners insurance.

Usually, lenders will collect these funds with your monthly mortgage payments and hold them in an escrow account. When the bills are due, your lender pays them on your behalf.

  • Property taxes: These vary significantly by your state and county. As a general benchmark, the average US tax rate has been around 0.86% of the property’s estimated market value in recent years.
  • Homeowners insurance: This one also varies based on your location and the coverage you choose. To give you an idea of what to expect, the national average for homeowners insurance is around $1,300 per year.

FAQ

Technically speaking, FHA loans do not require private mortgage insurance (PMI). If you get an FHA loan, you’ll pay a Mortgage Insurance Premium (MIP) instead, which can be anywhere from 0.15% to 0.75% of your loan amount. Additionally, you must pay a one-time upfront MIP, which is 1.75% of your loan.

No, you do not have to pay PMI if you put more than 20% as a down payment. However, keep in mind that you’d have to pay a Mortgage Insurance Premium (MIP), as it’s a requirement for all FHA loans.

The FHA charges two mortgage insurance premiums: an upfront MIP of 1.75% of the loan amount and an annual MIP between 0.15% to 0.75% of the loan amount, which is paid monthly.

For an FHA loan on a $400,000 house with a minimum down payment (3.5%), you’ll pay a Mortgage Insurance Premium (MIP). This will include a one-time fee of $6,755, which could be added to the loan amount. You will also have an ongoing monthly payment of $177.

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