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FHA MIP Calculator: Upfront and Monthly Mortgage Insurance

Work out the 1.75% upfront premium, the annual premium rate HUD assigns to your loan, the monthly cost and whether you pay it for 11 years or the life of the loan.

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FHA MIP

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Rate defaults to the Freddie Mac weekly average (7.4%, as of Oct 15, 2026). Change it to your own quote.

Results

Monthly MIP (first year) $155

In plain words

On a $350,000 home with 3.5% down, your base FHA loan is 96.5% of the price. You would pay $5,911 upfront (usually added to the loan, making it $343,661) and an annual premium of 0.55%, about $155 a month, for 30 years.

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Key figures

  • Monthly MIP (first year)$155
  • Upfront MIP (1.75%)$5,911
  • Annual MIP paid$38,308
  • All MIP incl. upfront$44,219
  • Annual MIP endsNov 2056
  • Annual MIP rate0.55%
FHA annual premium paid each year
$0$500$1.0K$1.5K$2.0K1471013161922252830
  • Mortgage insurance
View chart as table
YearMortgage insurance
Year 1$1,858
Year 2$1,840
Year 3$1,821
Year 4$1,801
Year 5$1,779
Year 6$1,756
Year 7$1,731
Year 8$1,703
Year 9$1,674
Year 10$1,643
Year 11$1,609
Year 12$1,572
Year 13$1,533
Year 14$1,491
Year 15$1,445
Year 16$1,396
Year 17$1,343
Year 18$1,286
Year 19$1,225
Year 20$1,159
Year 21$1,088
Year 22$1,012
Year 23$930
Year 24$841
Year 25$746
Year 26$643
Year 27$533
Year 28$414
Year 29$286
Year 30$148

Compare down payments

ScenarioUpfront MIP (1.75%)Annual MIP rateMonthly MIP (first year)Years you pay annual MIPAnnual MIP paid
3.5%$5,9110.55%$15530 years$38,308
5%$5,8190.5%$13930 years$34,284
10%$5,5130.5%$13111 years$16,292
20%$4,9000.5%$11711 years$14,482

Premium schedule by year

YearMortgage insuranceBalance
Year 1 · Nov 2026$1,858$334,575
Year 2 · Nov 2027$1,840$331,157
Year 3 · Nov 2028$1,821$327,477
Year 4 · Nov 2029$1,801$323,516
Year 5 · Nov 2030$1,779$319,251
Year 6 · Nov 2031$1,756$314,660
Year 7 · Nov 2032$1,731$309,717
Year 8 · Nov 2033$1,703$304,396
Year 9 · Nov 2034$1,674$298,668
Year 10 · Nov 2035$1,643$292,501
Year 11 · Nov 2036$1,609$285,861
Year 12 · Nov 2037$1,572$278,714
Year 13 · Nov 2038$1,533$271,019
Year 14 · Nov 2039$1,491$262,735
Year 15 · Nov 2040$1,445$253,817
Year 16 · Nov 2041$1,396$244,216
Year 17 · Nov 2042$1,343$233,880
Year 18 · Nov 2043$1,286$222,752
Year 19 · Nov 2044$1,225$210,773
Year 20 · Nov 2045$1,159$197,876
Year 21 · Nov 2046$1,088$183,992
Year 22 · Nov 2047$1,012$169,046
Year 23 · Nov 2048$930$152,954
Year 24 · Nov 2049$841$135,631
Year 25 · Nov 2050$746$116,981
Year 26 · Nov 2051$643$96,904
Year 27 · Nov 2052$533$75,289
Year 28 · Nov 2053$414$52,020
Year 29 · Nov 2054$286$26,969
Year 30 · Nov 2055$148$0
Totals$38,308

How to use this calculator

  1. Enter the purchase price, or the appraised value if it is lower.
  2. Enter your down payment as a percentage of the price (3.5% or more).
  3. Choose the loan term. Loans of 15 years or less have lower premiums.
  4. Read the upfront premium, the annual rate, the monthly cost and how long the annual premium lasts.

FHA loans let you buy with as little as 3.5% down, but every FHA borrower pays mortgage insurance premium (MIP) to the Federal Housing Administration. There are two parts: a one-time upfront premium and an annual premium split into monthly payments. This calculator applies HUD’s current rate table so you can see both.

How this FHA MIP calculator works

First it finds the base loan amount: price minus down payment. Then it applies the rules in HUD Mortgagee Letter 2023-05, which set the rates for case numbers assigned on or after March 20, 2023.

Upfront MIP = base loan × 1.75%

Monthly MIP (first year) = base loan × annual MIP rate ÷ 12

The annual rate depends on three things: the loan term, the base loan amount (above or below $726,200) and the loan-to-value ratio (LTV), which is the base loan divided by the price.

TermBase loanLTVAnnual MIPHow long
More than 15 yearsUp to $726,200Over 95%0.55%Life of loan
More than 15 yearsUp to $726,20095% or less0.50%11 years if LTV is 90% or less, otherwise life
More than 15 yearsOver $726,200Over 95% / 95% or less0.75% / 0.70%Same duration rule
15 years or lessUp to $726,200Over 90% / 90% or less0.40% / 0.15%Life / 11 years
15 years or lessOver $726,200Over 90% / 78-90% / 78% or less0.65% / 0.40% / 0.15%Life / 11 years / 11 years

Worked examples

Example 1: minimum down payment

A buyer purchases a $350,000 home with 3.5% down on a 30-year loan.

  1. Base loan: $350,000 − $12,250 = $337,750. LTV is 96.5%.
  2. Upfront MIP: $337,750 × 1.75% = $5,911. Financed, the loan becomes about $343,661.
  3. LTV is over 95%, so the annual rate is 0.55%: $337,750 × 0.55% ÷ 12 = about $155 a month.
  4. LTV is over 90%, so the annual premium lasts for the life of the loan.

Example 2: 10% down

The same $350,000 home with 10% down gives a base loan of $315,000 and an LTV of 90%. The upfront premium is about $5,513, the annual rate is 0.50%, or about $131 a month, and because the LTV is 90% or less it ends after 11 years. That one change saves years of premiums.

A 15-year loan on a $300,000 home with 10% down would pay only 0.15% a year, about $34 a month.

What your result means

The monthly MIP is added to your house payment, so include it when you check affordability with the mortgage payment calculator (set PMI to zero there and add this figure). If the MIP lasts for the life of the loan, many borrowers plan to refinance into a conventional loan once they reach about 20% equity, which removes FHA insurance entirely.

Program rules that change the answer

  • Loan limits: your base loan must be within your county’s FHA limit. For 2026, one-unit limits run from $541,287 to $1,249,125 depending on the county.
  • Credit score: a score of 580 or higher allows 3.5% down; 500 to 579 requires 10% down, which also shortens MIP to 11 years.
  • Streamline refinances and some special programs have different premiums.
  • Rate changes: HUD can change premiums by mortgagee letter. Your rate is fixed by the date your FHA case number is assigned.

FHA MIP compared with other mortgage insurance

LoanUpfront chargeOngoing chargeCan it end early?
FHA1.75% MIP0.15% to 0.75% a yearOnly by refinancing, unless 10%+ down (11 years)
ConventionalNonePMI priced by credit and down paymentYes, at 80% LTV on request, 78% automatically
VAFunding fee 0.5% to 3.3% unless exemptNoneNot applicable
USDAGuarantee fee, capped at 3.5%Annual fee, capped at 0.5%No

The FHA vs conventional calculator puts these side by side over several years, including when PMI would drop off.

Assumptions

  • The base loan is the price minus the down payment; the upfront premium is not counted in the LTV.
  • Rates follow HUD Mortgagee Letter 2023-05 for forward purchase loans.
  • The monthly figure is the first year’s premium; later years are slightly lower.
  • Loan terms longer than 15 years use the higher table.

Common mistakes

  • Forgetting the upfront premium. Financing it raises your loan balance and your principal and interest.
  • Assuming MIP ends at 20% equity. That is PMI on conventional loans. FHA MIP follows its own 11-year or life-of-loan rule.
  • Using the price when the appraisal is lower. LTV is based on the lower of the two.

Limits of this estimate

Your lender will calculate the exact premiums on your Loan Estimate. Read our FHA loan guide for eligibility, including the 2025 rule that ended FHA eligibility for non-permanent residents, and our explainer on mortgage insurance to compare MIP with PMI, the VA funding fee and USDA fees.

For context, the national average 30-year fixed rate was 7.40% as of October 15, 2026 (Freddie Mac). FHA, VA and USDA rates are set by each lender and often differ.Source: Freddie Mac Primary Mortgage Market Survey, via FRED

Frequently asked questions

How much is FHA mortgage insurance in 2026?

FHA charges an upfront premium of 1.75% of the base loan and an annual premium paid monthly. For most 30-year loans up to $726,200 the annual rate is 0.55% with less than 5% down and 0.50% with 5% or more down, under HUD Mortgagee Letter 2023-05.

Can I roll the upfront MIP into the loan?

Yes. Most borrowers finance the 1.75% upfront premium, which adds it to the loan balance. You can also pay it in cash at closing.

How long do I pay FHA MIP?

If your loan-to-value ratio at the start is 90% or less (10% or more down), you pay the annual premium for 11 years. With less than 10% down, you pay it for the life of the loan unless you refinance into a loan without FHA insurance.

Why does the monthly MIP go down over time?

The annual premium is recalculated each year on the average outstanding balance, so it slowly falls as you pay the loan down. This calculator shows the first-year figure.

Is FHA MIP more expensive than PMI?

It depends on your credit. Borrowers with lower scores often pay less with FHA, while borrowers with strong credit and 5% or more down often pay less with conventional PMI, which can also be removed. Compare both with the FHA vs conventional calculator.

Do 15-year FHA loans have cheaper MIP?

Yes. For loans of 15 years or less up to $726,200, the annual premium is 0.15% with 10% or more down and 0.40% with less.

Can I get a refund of upfront MIP?

If you refinance into a new FHA loan within three years, part of the upfront premium is credited to the new loan on a sliding scale. There is no refund if you refinance into a conventional loan.

Sources

  1. Mortgagee Letter 2023-05: Reduction of FHA Annual Mortgage Insurance Premium RatesUS Department of Housing and Urban Development · as of October 2026
  2. FHA Single Family Housing Policy Handbook 4000.1US Department of Housing and Urban Development · as of October 2026
  3. Mortgagee Letter 2025-23: 2026 Nationwide Forward Mortgage LimitsUS Department of Housing and Urban Development · as of October 2026