Estimate an FHA mortgage with the HUD-based method selected by default. Enter a home price, down payment, term, and rate to see principal and interest, financed upfront MIP, first-year monthly MIP, taxes, insurance, and a dated amortization schedule. The separate Comparison tab preserves this site's earlier flat-MIP calculation for comparing old saved results.
FHA annual MIP rates and duration
The automatic rate follows the HUD schedule effective for forward-mortgage case numbers endorsed on or after March 20, 2023. It is based on the base loan, term, and original loan-to-value (LTV). Select Custom rate only to model a lender-provided rate or a hypothetical case.
Loan term longer than 15 years
| Base loan | Original down payment | Annual MIP |
|---|---|---|
| $726,200 or less | under 5% | 0.55% |
| $726,200 or less | 5% or more | 0.50% |
| More than $726,200 | under 5% | 0.75% |
| More than $726,200 | 5% or more | 0.70% |
Loan term 15 years or less
| Base loan | Original down payment | Annual MIP |
|---|---|---|
| $726,200 or less | under 10% | 0.40% |
| $726,200 or less | 10% or more | 0.15% |
| More than $726,200 | under 10% | 0.65% |
| More than $726,200 | 10% up to 22% | 0.40% |
| More than $726,200 | 22% or more | 0.15% |
For the automatic duration, original LTV at or below 90% uses 11 years of annual MIP; above 90% uses the mortgage term. The manual 78% LTV, five-year, and no-MIP choices are what-if overrides, not the standard cancellation rule for modern FHA loans. Additional payments can shorten the payoff but do not change the original LTV classification or the scheduled MIP in earlier years.
Examples
$500,000 home · 3.5% down · 30 years
A $500,000 home with 3.5% down ($17,500) has a $482,500 base loan. At 1.75%, upfront MIP is $8,443.75 and the financed loan is $490,943.75. At 6.782% for 30 years, P&I is about $3,194.70/month. The published 0.55% annual-MIP rate produces about $220.09/month in year one; later years can be lower. With 1.2% property tax, $2,500 annual insurance, and $5,000 other annual costs, estimated first-year out-of-pocket cost is about $4,539.79/month.
10% down changes both MIP rate and duration
On the same $500,000 home, $50,000 down means a $450,000 base loan and an original LTV of 90%. The default method selects an 11-year MIP duration and the 0.50% rate for a loan longer than 15 years. It calculates upfront MIP on the smaller base loan, rather than keeping it fixed at the amount for 3.5% down.
What the comparison tab means
The legacy calculation applies 1.75% to the $500,000 home price, yielding $8,750 upfront MIP, and charges a flat $221.15 in monthly annual MIP. Those figures intentionally differ from the HUD-based estimate above; use the comparison only for continuity with old results.
Formula
The base loan is the home price less the down payment. In the HUD-based estimate, the upfront premium is calculated on that base loan and financed into the principal:
base loan = home price − down payment
upfront MIP = base loan × upfront MIP rate (truncated to cents)
financed loan = base loan + upfront MIP
monthly P&I = P · r(1 + r)^n / ((1 + r)^n − 1)
Here P is the financed loan, r is the monthly interest rate, and n is the number of monthly payments. For each loan year, the HUD-based annual-MIP estimate uses the original scheduled average outstanding balance and the annual rate. Because upfront MIP is financed in this form, the premium calculation removes that financed-premium factor before dividing by 12. The first-year MIP shown with the headline results is not necessarily the amount in later years; see the MIP column in the amortization schedule.
Optional property tax, homeowners insurance, HOA, and other recurring costs are added to monthly out-of-pocket costs. Their monthly headline amounts are first-year amounts; optional annual increases affect later years.
This is a HUD-based estimate, not an official HUD calculator or loan quote. Your lender determines the loan amount, case-number rules, premiums, escrows, and eligibility. The HUD annual-MIP mortgagee letter, premium calculation guidance, and cancellation guidance explain the method and limitations.