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FHA Loan Calculator with Upfront & Monthly MIP

Calculate your complete monthly FHA mortgage payment including 3.5% down payment, 1.75% Upfront MIP, annual monthly mortgage insurance, property taxes, and homeowners insurance.

Quick Scenarios
Total negotiated property purchase price.
Minimum FHA down payment is 3.5% ($10,500 on a $300k home) with a 580+ credit score.
Your quoted FHA fixed interest rate (FHA rates are often 0.25% lower than conventional).
Most FHA borrowers select a 30-year fixed loan.
Local annual property tax divided into 12 monthly payments.
Yearly hazard insurance premium.
Standard HUD annual MIP is 0.55% for 30-year loans with 3.5% down.
Market interest rate for a conventional loan with 3% down.
Conventional Private Mortgage Insurance rate based on credit score (typically 0.5% to 1.2%).
Annual home value growth, used to calculate when conventional PMI drops at 20% equity.

FHA Provides Lower Initial Cash Flow

FHA starts at $2,386.22/month, compared to $2,493.70 for a conventional loan. However, conventional PMI cancels after ~4.1 years, dropping your payment to $2,288.64, whereas FHA monthly MIP stays for the entire loan life unless you refinance.

Total Monthly FHA Payment $2,386.22
Principal & Interest $1,861.86
Monthly Mortgage Insurance (MIP) $132.69
Upfront MIP Financed (1.75%) $5,066.25
Total Financed Loan Amount $294,566.25
Initial Conventional Payment $2,493.70
Conventional PMI Drop Horizon ~4.1 Years (49 mo)
Conventional Payment After PMI $2,288.64

FHA vs. Conventional Mortgage: Complete 2026 Comparison

FHA loans backed by the Federal Housing Administration allow borrowers with credit scores as low as 580 to purchase a home with only 3.5% down, but come with unique insurance rules.

The True Cost of FHA Mortgage Insurance (MIP)

FHA loans carry two mandatory fees: a 1.75% upfront fee financed directly into your loan balance, plus an annual 0.55% monthly premium. On a $300,000 purchase, upfront MIP adds $5,066 to your balance and $133/month to your payment.

When to Choose Conventional Over FHA

If your credit score is 700 or higher, a Conventional 97 (3% down) loan often wins because conventional PMI cancels automatically once your equity hits 20%, saving thousands in your 30s and 40s.

How to Use the FHA Loan Calculator with Upfront & Monthly MIP

  1. 1
    Enter the property purchase price and cash down payment (minimum 3.5% for FHA).
  2. 2
    Input the quoted FHA fixed interest rate and loan term.
  3. 3
    Review your property tax and hazard insurance estimates.
  4. 4
    Check the side-by-side Conventional comparison in Advanced Options to see when PMI cancels.

Frequently Asked Questions

How is the 1.75% Upfront MIP paid?

The 1.75% upfront mortgage insurance premium (UFMIP) is automatically financed into your total loan balance at closing, so you do not need to bring extra cash to the table.

Does FHA mortgage insurance ever go away?

For FHA loans with less than 10% down, monthly MIP remains for the entire 30-year life of the loan. Most homeowners refinance into a conventional loan once their equity exceeds 20% to eliminate MIP.

What is the minimum credit score for an FHA loan?

A credit score of 580 qualifies for the minimum 3.5% down payment. Borrowers with scores between 500 and 579 are required to put down at least 10%.

Can I use gift funds for the 3.5% FHA down payment?

Yes! HUD guidelines permit 100% of the FHA down payment and closing costs to come from family gift funds with a standard gift letter.