# FHA loan calculator

> FHA loan payment with the 1.75% upfront MIP, the annual MIP from HUD's current table, taxes and insurance, and a check against your county's 2026 loan limit.

Interactive version: https://www.calcopenly.com/finance/fha-loan-calculator
Subject: Finance calculators

An FHA loan carries two mortgage insurance premiums. The upfront premium (UFMIP) is 1.75% of the base loan and is usually added to the loan. The annual premium is a rate from HUD's table, set by the term, the base loan amount and the loan-to-value ratio, and billed monthly. HUD recomputes it each year from that year's average scheduled balance, so it falls a little every year.

With the defaults, a 400,000 home with the 3.5% minimum down leaves a 386,000 base loan. The upfront premium of 6,755 brings the loan to 392,755, principal and interest at 6.5% over 30 years are 2,482.48, and first-year MIP at 0.55% is 176.02 a month, for 3,150.17 in all with property tax and insurance.

Rates are those in HUD Mortgagee Letter 2023-05, in force for loans endorsed from March 20, 2023. Enter your county's FHA limit: for 2026, one-unit limits run from 541,287 to 1,249,125.

## Inputs

- **Home price**
- **Enter down payment as** (options: Percent of price, Amount)
- **Down payment**: FHA minimum: 3.5% with a credit score of 580 or higher, 10% at 500 to 579 (HUD Handbook 4000.1).
- **Down payment**: FHA minimum: 3.5% with a credit score of 580 or higher, 10% at 500 to 579 (HUD Handbook 4000.1).
- **Credit score** (options: 580 or higher, 500 to 579, Below 500)
- **Interest rate (per year)**
- **Loan term**: FHA allows terms of up to 30 years.
- **FHA loan limit for your county**: One-unit limits for case numbers assigned in 2026 run from $541,287 to $1,249,125 (HUD Mortgagee Letter 2025-23). Look up your county on HUD's FHA mortgage limits page.
- **Add the upfront MIP to the loan**: HUD requires the premium to be either fully financed or fully paid in cash; cents that would take the loan past a whole dollar are paid in cash.
- **Property tax (per year, of home price)**
- **Homeowners insurance (per year)**
- **HOA dues (per month)**
- **Upfront MIP rate**: Leave blank for HUD's current 1.75%. Enter another rate to model an older loan.
- **Annual MIP rate**: Leave blank to take the rate from HUD Mortgagee Letter 2023-05. The duration still follows HUD's table.
- **Base loan above which higher MIP rates apply**: $726,200 is the figure printed in Mortgagee Letter 2023-05 and Handbook 4000.1 Appendix 1.0. The letter describes it as the national conforming loan limit, which FHFA set at $832,750 for 2026; ask your lender which figure it uses.

## Results

- Total monthly payment (year 1) — main result
- Principal and interest
- Monthly MIP (year 1)
- Property tax per month
- Insurance per month
- Base loan amount
- Upfront MIP
- Total loan amount
- Down payment
- Down payment and MIP paid in cash
- Loan-to-value (base loan)
- Annual MIP rate
- Annual MIP charged for (years)
- Largest FHA base loan for this price
- Total interest
- Annual MIP over the loan

## Formula

$$
\text{UFMIP} = 1.75\%\times L,\quad M = \frac{T\,r\,(1+r)^n}{(1+r)^n-1},\quad \text{MIP}_k = \frac{1}{12}\cdot\frac{a\cdot\bar{B}_k}{1+u}
$$

## Worked examples

### HUD's own monthly MIP example (older 2.25% and 0.50% rates)

- Home price: 108,050
- Enter down payment as: Amount
- Down payment: 3790.83
- Credit score: 580 or higher
- Interest rate (per year): 7.5%
- Loan term: 30 years
- FHA loan limit for your county: 541,287
- Add the upfront MIP to the loan: yes
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- Upfront MIP rate: 2.25%
- Annual MIP rate: 0.5%
- **Base loan amount: 104,259.17**
- **Upfront MIP: 2,345.83**
- **Total loan amount: 106,605.00**
- **Principal and interest: 745.40**
- **Monthly MIP (year 1): 43.26**
- Checked against: HUD, Monthly (Periodic) Mortgage Insurance Premium Calculation: original mortgage 106,605, 7.5%, P&I 745.40, annual MIP .005, upfront factor .0225 → year-1 average balance 106,160.65, monthly MIP 43.26

### 400k home, 3.5% down, 6.5% for 30 years

- Home price: 400,000
- Enter down payment as: Percent of price
- Down payment: 3.5%
- Credit score: 580 or higher
- Interest rate (per year): 6.5%
- Loan term: 30 years
- FHA loan limit for your county: 541,287
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Base loan amount: 386,000.00**
- **Upfront MIP: 6,755.00**
- **Total loan amount: 392,755.00**
- **Principal and interest: 2,482.48**
- **Annual MIP rate: 0.55%**
- **Annual MIP charged for: 30 years**
- **Monthly MIP (year 1): 176.02**
- **Total monthly payment (year 1): 3,150.17**
- Checked against: Python decimal: ML 2023-05 table (over 15 years, base ≤ 726,200, LTV 96.5% > 95% → 55 bps for the term) and HUD's monthly MIP procedure on the cent-rounded schedule

### 15-year loan with 10% down

- Home price: 300,000
- Enter down payment as: Percent of price
- Down payment: 10%
- Credit score: 580 or higher
- Interest rate (per year): 5.75%
- Loan term: 15 years
- FHA loan limit for your county: 541,287
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Base loan amount: 270,000.00**
- **Total loan amount: 274,725.00**
- **Principal and interest: 2,281.34**
- **Annual MIP rate: 0.15%**
- **Annual MIP charged for: 11 years**
- **Monthly MIP (year 1): 33.09**
- **Annual MIP over the loan: 3,180.12**
- Checked against: Python decimal: ML 2023-05 (15 years or less, base ≤ 726,200, LTV 90% → 15 bps for 11 years) and HUD's average-balance method

### High-balance loan in a ceiling county

- Home price: 900,000
- Enter down payment as: Percent of price
- Down payment: 10%
- Credit score: 580 or higher
- Interest rate (per year): 6.5%
- Loan term: 30 years
- FHA loan limit for your county: 1,249,125
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Base loan amount: 810,000.00**
- **Total loan amount: 824,175.00**
- **Annual MIP rate: 0.70%**
- **Annual MIP charged for: 11 years**
- **Monthly MIP (year 1): 470.11**
- **Total monthly payment (year 1): 6,629.46**
- Checked against: Python decimal: ML 2023-05 (over 15 years, base above 726,200, LTV 90% → 70 bps for 11 years); 2026 ceiling 1,249,125 from ML 2025-23

### Exactly 5% down, with UFMIP cents paid in cash

- Home price: 350,000
- Enter down payment as: Percent of price
- Down payment: 5%
- Credit score: 580 or higher
- Interest rate (per year): 6.25%
- Loan term: 30 years
- FHA loan limit for your county: 541,287
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Loan-to-value (base loan): 95.00%**
- **Annual MIP rate: 0.50%**
- **Upfront MIP: 5,818.75**
- **Total loan amount: 338,318.00**
- **Down payment and MIP paid in cash: 17,500.75**
- **Monthly MIP (year 1): 137.81**
- Checked against: Python decimal: LTV 95.00% sits in the '> 90% but ≤ 95%' band (50 bps); HUD Handbook 4000.1 — the mortgage is rounded down to the whole dollar, so 0.75 of the 5,818.75 UFMIP is paid in cash

### Upfront MIP paid in cash

- Home price: 250,000
- Enter down payment as: Percent of price
- Down payment: 3.5%
- Credit score: 580 or higher
- Interest rate (per year): 6.5%
- Loan term: 30 years
- FHA loan limit for your county: 541,287
- Add the upfront MIP to the loan: no
- Property tax (per year, of home price): 1.1%
- Homeowners insurance (per year): 1500
- HOA dues (per month): 0
- **Upfront MIP: 4,221.87**
- **Total loan amount: 241,250.00**
- **Down payment and MIP paid in cash: 12,971.87**
- **Principal and interest: 1,524.86**
- **Monthly MIP (year 1): 110.01**
- Checked against: Python decimal: 1.75% × 241,250 = 4,221.875 truncated to 4,221.87 (HUD: no rounding of the UFMIP); no division by 1 + UFMIP rate when the premium is not financed

## Questions

### How much is FHA mortgage insurance in 2026?

The upfront premium is 1.75% of the base loan, and the annual premium is 0.15% to 0.75% a year (HUD Mortgagee Letter 2023-05). The most common case, a 30-year loan of up to 726,200 with less than 5% down, pays 0.55% a year. On a 386,000 base loan that is 6,755 upfront and 176.02 a month of MIP in the first year at 6.5%.

### Can you get rid of MIP on an FHA loan?

Only by putting at least 10% down: with a loan-to-value of 90% or less, annual MIP ends after 11 years (132 payments). Below 10% down it runs for the whole term, so a 30-year loan with 3.5% down pays it for 360 months. For case numbers assigned from June 3, 2013, HUD ends the insurance early only when the loan is paid off, for example by refinancing.

### What is the minimum down payment for an FHA loan?

3.5% of the lower of the price and the appraised value if your credit score is 580 or higher, and 10% if it is between 500 and 579. Borrowers scoring below 500 are not eligible (HUD Handbook 4000.1). On a 400,000 home that is 14,000 or 40,000. The upfront MIP is financed on top and does not count toward these limits.

### What are the FHA loan limits for 2026?

For a one-unit home, 541,287 in low-cost counties and up to 1,249,125 in high-cost ones, for case numbers assigned from January 1, 2026 (HUD Mortgagee Letter 2025-23). Two-unit limits run from 693,050 to 1,599,375. The limit caps the base loan; the financed upfront premium may take the total above it. Look up your county on HUD's FHA mortgage limits page.

### How is the monthly FHA MIP calculated?

HUD averages the 12 scheduled balances of the loan year, multiplies by the annual rate and rounds to cents, divides by 1 plus the upfront rate when the UFMIP is financed, then divides by 12. HUD's published example, 106,605 at 7.5% with a 0.50% annual and 2.25% upfront rate, gives 43.26 a month in year 1 and 42.85 in year 2.

### How accurate is the FHA loan calculator?

Accuracy depends on your inputs and the method's assumptions. Decimal arithmetic uses 50 significant digits, but estimates, numerical methods and source data can be less precise; the displayed rounding does not remove those limits. It is checked against 6 worked examples whose answers come from independent sources; for example, “HUD's own monthly MIP example (older 2.25% and 0.50% rates)” is checked against HUD, Monthly (Periodic) Mortgage Insurance Premium Calculation: original mortgage 106,605, 7.5%, P&I 745.40, annual MIP .005, upfront factor .0225 → year-1 average balance 106,160.65, monthly MIP 43.26.

### Where does the method come from?

HUD Mortgagee Letter 2023-05 — Reduction of FHA annual MIP rates (effective March 20, 2023); HUD — Monthly (periodic) mortgage insurance premium calculation; HUD — Single family upfront premium, late and interest charges; HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook — II.A.2 Allowable mortgage parameters and Appendix 1.0; HUD Mortgagee Letter 2025-23 — 2026 nationwide forward mortgage loan limits; HUD — FHA mortgage limits lookup by county.

## Sources

- [HUD Mortgagee Letter 2023-05 — Reduction of FHA annual MIP rates (effective March 20, 2023)](https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-05hsgml.pdf)
- [HUD — Monthly (periodic) mortgage insurance premium calculation](https://www.hud.gov/hud-partners/housing-premium-calculation)
- [HUD — Single family upfront premium, late and interest charges](https://www.hud.gov/hud-partners/housing-upfront-late-charges)
- [HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook — II.A.2 Allowable mortgage parameters and Appendix 1.0](https://www.hud.gov/program_offices/housing/sfh/handbook_references)
- [HUD Mortgagee Letter 2025-23 — 2026 nationwide forward mortgage loan limits](https://www.hud.gov/sites/dfiles/hudclips/documents/2025-23hsgml.pdf)
- [HUD — FHA mortgage limits lookup by county](https://entp.hud.gov/idapp/html/hicostlook.cfm)

_Note: financial information, not professional advice._