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FHA mortgage insurance calculator
Work out FHA mortgage insurance: the 1.75% upfront premium and the annual MIP.
Reviewed by Enu Zehra and Ms. Kakka, editors · Owner: Nadeem · hello@countrypilot.net (email only) · How we review
Educational estimates only. Calculated on your device. No account, no sign-up, no phone call.
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What this does not do: it does not quote a mortgage, and it is not a full monthly payment — principal, interest, property taxes, homeowners insurance and HOA dues are not included. It calculates FHA mortgage insurance only, from HUD Mortgagee Letter 2023-05 rates. Your lender's Loan Estimate shows the exact amount.
About this tool
Published 2026-11-06.
What FHA mortgage insurance is
Every FHA-insured loan pays mortgage insurance premium (MIP) into FHA's Mutual Mortgage Insurance Fund, which protects the lender if a borrower defaults. You pay it twice over: once at closing, as an upfront premium, and then monthly, as an annual premium added to the mortgage payment. Unlike conventional private mortgage insurance, FHA MIP applies regardless of down payment — there is no down payment large enough to avoid it, only one large enough to shorten it.
The rates — HUD Mortgagee Letter 2023-05
All rates below come from HUD Mortgagee Letter 2023-05, effective for case numbers endorsed on or after 20 March 2023 and now Appendix 1.0 of HUD Handbook 4000.1. No later HUD notice had changed single-family forward MIP rates as of October 2026. The upfront premium is 1.75% of the base loan amount on almost every FHA loan, purchase or refinance. The annual rate depends on three things only: the loan term, the base loan amount, and the loan-to-value ratio (LTV) at origination. Your credit score does not change the FHA MIP rate.
| Term | Base loan | LTV | Annual MIP | Duration |
|---|---|---|---|---|
| Over 15 years | $726,200 or less | 90% or less | 0.50% | 11 years |
| Over 15 years | $726,200 or less | Over 90% to 95% | 0.50% | Loan term |
| Over 15 years | $726,200 or less | Over 95% | 0.55% | Loan term |
| Over 15 years | Over $726,200 | 90% or less | 0.70% | 11 years |
| Over 15 years | Over $726,200 | Over 90% to 95% | 0.70% | Loan term |
| Over 15 years | Over $726,200 | Over 95% | 0.75% | Loan term |
| 15 years or less | $726,200 or less | 90% or less | 0.15% | 11 years |
| 15 years or less | $726,200 or less | Over 90% | 0.40% | Loan term |
| 15 years or less | Over $726,200 | 78% or less | 0.15% | 11 years |
| 15 years or less | Over $726,200 | Over 78% to 90% | 0.40% | 11 years |
| 15 years or less | Over $726,200 | Over 90% | 0.65% | Loan term |
How long the annual premium lasts
Your LTV at origination sets the duration for both term groups. With an LTV of 90% or less — 10% or more down — annual MIP stops after 11 years. With an LTV over 90%, it lasts for the full loan term. That rule took effect for FHA case numbers assigned on or after 3 June 2013, under Mortgagee Letter 2013-04. The only ways out for a loan that lasts the full term are to refinance into a conventional loan, or to sell the home or pay the loan off. Extra principal payments do not shorten the MIP period, because HUD sets it in years.
Worked example
Take a $300,000 home with a 30-year FHA loan and 3.5% down ($10,500), appraised at the price. Base loan $289,500. Upfront MIP 1.75% × $289,500 = $5,066.25, usually financed into the loan for a total of $294,566.25. LTV 96.5%, so the annual rate is 0.55% and the duration is the life of the loan. First-year monthly MIP about $289,500 × 0.0055 ÷ 12 = $132.69. At 5% down the same loan pays 0.50% — about $118.75 a month — and at 10% down it pays 0.50% for 11 years only. These figures leave out interest, property taxes, homeowners insurance and HOA dues.
Why the monthly figure falls a little each year
Under 24 CFR 203.284, HUD charges the annual MIP on the average outstanding balance for each loan year, found from the original amortisation schedule. The rate stays the same, but the dollar amount drops slightly each year as the balance shrinks. The figures this tool gives are therefore first-year approximations; the actual first-year MIP is a little lower, since the average balance in year one sits below the starting balance. Your lender's Loan Estimate shows the exact amount.
What this calculator does not do
This tool does not quote a mortgage, compare FHA with conventional PMI, or give a full monthly payment. It calculates FHA mortgage insurance only, from the rates above. A conventional loan with the same down payment may cost less or more overall — PMI is priced by credit score as well as LTV, and it can come off once the loan reaches 80% LTV — so ask a lender for FHA and conventional quotes at the same down payment before deciding. The homeowners cost calculator on this site estimates the cover side of the same purchase.
For the rates themselves, see HUD Mortgagee Letter 2023-05 (PDF).
Questions about this tool
Is this result a quote from an insurer?
No. It is an educational estimate worked out from the numbers you entered, using the method below. No insurer rates are stored here and no carrier is compared.
Why does the result change when I change one input?
Because the calculation uses that input directly. Change one input at a time to see which one moves the result most — that is the quickest way to test a range.
What changes the result most?
Usually the biggest inputs you entered — the amount of cover, the deductible or limit, and any state or eligibility rule that applies. Change one input at a time to see which one moves the figure most.
Where do I check the rules behind this tool?
In the method section below and in the official source linked at the foot of the page. Rules and prices change, so the official source has the last word.
Reviewed by editors Enu Zehra and Ms. Kakka. Owner: Nadeem. Contact: hello@countrypilot.net (email only). General information only — not insurance, legal or financial advice.