A one-time 1.75% premium on the loan amount, usually financed into the mortgage, paid to HUD to insure the loan.

How is annual MIP calculated?

It depends on term, loan size and LTV: 0.50–0.55% for ≤$726,200 loans, 0.70–0.75% above, and 0.15–0.65% on 15-year loans. It is charged monthly on the average balance — this estimate uses the starting balance.

Can I remove FHA MIP early?

Not by paying down alone. Refinancing to a conventional loan (once you have ~20% equity) is the standard way out.

FHA Loan Calculator

FHA loans allow 3.5% down but charge mortgage insurance premiums. This calculator prices the upfront MIP, the annual MIP (with its 11-year cancellation rule when you put 10%+ down), and the complete monthly cost including taxes and insurance.

#fha loan#fha mip#upfront mip#fha payment#3.5 down

Live calculate

Presets

Home Price

Down Payment

FHA minimum is 3.5% with a 580+ credit score.

Loan Term

years

Interest Rate

Upfront FHA MIP

1.75% for most borrowers; can be financed into the loan.

Annual FHA MIP

Annual MIP Duration

Finance Upfront MIP into Loan

Property Taxes

% / year

Home Insurance

$/year

HOA Fee

$/year

Other Costs

$/year

First Payment Date

Live mode: results update as you type.

Monthly Pay

$4,544.12

P&I $3,197.97 + MIP $221.15 · loan $490,944

House Price: $500,000
Down Payment (3.5%): $17,500
Base Loan Amount: $482,500
Upfront MIP (1.75%): $8,444
Loan Amount w/ MIP: $490,944
Annual MIP / month: $221.15
MIP Duration: 30 yrs
Total MIP Paid: $79,613
Total Interest: $660,326
Total of Payments: $1,151,269
Mortgage Payoff Date: November 8, 2056

Monthly out-of-pocket breakdown

Principal & Interest$3,198
Annual MIP$221
Property Tax$500
Home Insurance$208
Other Costs$417

Amortization schedule (annual)

Year	Beginning Balance	Total Paid	Principal	Interest	Ending Balance
Year 1	$490,943.75	$38,375.64	$5,190.34	$33,185.30	$485,753.41
Year 2	$485,753.41	$38,375.64	$5,554.05	$32,821.59	$480,199.35
Year 3	$480,199.35	$38,375.64	$5,943.25	$32,432.39	$474,256.10
Year 4	$474,256.10	$38,375.64	$6,359.73	$32,015.92	$467,896.37
Year 5	$467,896.37	$38,375.64	$6,805.38	$31,570.26	$461,090.99
Year 6	$461,090.99	$38,375.64	$7,282.27	$31,093.38	$453,808.72
Year 7	$453,808.72	$38,375.64	$7,792.57	$30,583.07	$446,016.15
Year 8	$446,016.15	$38,375.64	$8,338.63	$30,037.01	$437,677.52
Year 9	$437,677.52	$38,375.64	$8,922.96	$29,452.68	$428,754.56
Year 10	$428,754.56	$38,375.64	$9,548.23	$28,827.41	$419,206.33
Year 11	$419,206.33	$38,375.64	$10,217.32	$28,158.32	$408,989.00
Year 12	$408,989.00	$38,375.64	$10,933.30	$27,442.34	$398,055.70
Year 13	$398,055.70	$38,375.64	$11,699.45	$26,676.19	$386,356.25
Year 14	$386,356.25	$38,375.64	$12,519.29	$25,856.36	$373,836.96
Year 15	$373,836.96	$38,375.64	$13,396.57	$24,979.07	$360,440.39
Year 16	$360,440.39	$38,375.64	$14,335.33	$24,040.31	$346,105.06
Year 17	$346,105.06	$38,375.64	$15,339.88	$23,035.76	$330,765.18
Year 18	$330,765.18	$38,375.64	$16,414.82	$21,960.83	$314,350.36
Year 19	$314,350.36	$38,375.64	$17,565.08	$20,810.56	$296,785.28
Year 20	$296,785.28	$38,375.64	$18,795.95	$19,579.69	$277,989.33
Year 21	$277,989.33	$38,375.64	$20,113.07	$18,262.57	$257,876.26
Year 22	$257,876.26	$38,375.64	$21,522.49	$16,853.15	$236,353.77
Year 23	$236,353.77	$38,375.64	$23,030.67	$15,344.97	$213,323.10
Year 24	$213,323.10	$38,375.64	$24,644.54	$13,731.10	$188,678.56
Year 25	$188,678.56	$38,375.64	$26,371.50	$12,004.14	$162,307.06
Year 26	$162,307.06	$38,375.64	$28,219.48	$10,156.16	$134,087.58
Year 27	$134,087.58	$38,375.64	$30,196.95	$8,178.69	$103,890.63
Year 28	$103,890.63	$38,375.64	$32,312.99	$6,062.65	$71,577.64
Year 29	$71,577.64	$38,375.64	$34,577.32	$3,798.32	$37,000.32
Year 30	$37,000.32	$38,375.64	$37,000.32	$1,375.33	$0.00

Unlike conventional PMI, FHA annual MIP cannot simply be canceled at 20% equity: with 10%+ down on a >15-year loan it ends after 11 years, otherwise it lasts for the life of the loan. Refinancing to a conventional loan is the usual escape route.

Most useful next

Formula

Loan = base + upfront MIP (1.75%); Annual MIP = base × MIP rate ÷ 12 monthly, 0.5%/0.55%/0.7%/0.75% by LTV and term

Pro tips

• Putting 10% down (instead of 3.5%) ends annual MIP after 11 years — often worth it.
• FHA allows DTI up to 57% in some scenarios, but totals get expensive fast.
• With strong credit (740+), a conventional loan is frequently cheaper than FHA.

FAQ

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FHA Loan Calculator

#fha loan#fha mip#upfront mip#fha payment#3.5 down

Year

Beginning Balance

Total Paid

Principal

Interest

Ending Balance

Year 1

$490,943.75

$38,375.64

$5,190.34

$33,185.30

$485,753.41

Year 2

$485,753.41

$38,375.64

$5,554.05

$32,821.59

$480,199.35

Year 3

$480,199.35

$38,375.64

$5,943.25

$32,432.39

$474,256.10

Year 4

$474,256.10

$38,375.64

$6,359.73

$32,015.92

$467,896.37

Year 5

$467,896.37

$38,375.64

$6,805.38

$31,570.26

$461,090.99

Year 6

$461,090.99

$38,375.64

$7,282.27

$31,093.38

$453,808.72

Year 7

$453,808.72

$38,375.64

$7,792.57

$30,583.07

$446,016.15

Year 8

$446,016.15

$38,375.64

$8,338.63

$30,037.01

$437,677.52

Year 9

$437,677.52

$38,375.64

$8,922.96

$29,452.68

$428,754.56

Year 10

$428,754.56

$38,375.64

$9,548.23

$28,827.41

$419,206.33

Year 11

$419,206.33

$38,375.64

$10,217.32

$28,158.32

$408,989.00

Year 12

$408,989.00

$38,375.64

$10,933.30

$27,442.34

$398,055.70

Year 13

$398,055.70

$38,375.64

$11,699.45

$26,676.19

$386,356.25

Year 14

$386,356.25

$38,375.64

$12,519.29

$25,856.36

$373,836.96

Year 15

$373,836.96

$38,375.64

$13,396.57

$24,979.07

$360,440.39

Year 16

$360,440.39

$38,375.64

$14,335.33

$24,040.31

$346,105.06

Year 17

$346,105.06

$38,375.64

$15,339.88

$23,035.76

$330,765.18

Year 18

$330,765.18

$38,375.64

$16,414.82

$21,960.83

$314,350.36

Year 19

$314,350.36

$38,375.64

$17,565.08

$20,810.56

$296,785.28

Year 20

$296,785.28

$38,375.64

$18,795.95

$19,579.69

$277,989.33

Year 21

$277,989.33

$38,375.64

$20,113.07

$18,262.57

$257,876.26

Year 22

$257,876.26

$38,375.64

$21,522.49

$16,853.15

$236,353.77

Year 23

$236,353.77

$38,375.64

$23,030.67

$15,344.97

$213,323.10

Year 24

$213,323.10

$38,375.64

$24,644.54

$13,731.10

$188,678.56

Year 25

$188,678.56

$38,375.64

$26,371.50

$12,004.14

$162,307.06

Year 26

$162,307.06

$38,375.64

$28,219.48

$10,156.16

$134,087.58

Year 27

$134,087.58

$38,375.64

$30,196.95

$8,178.69

$103,890.63

Year 28

$103,890.63

$38,375.64

$32,312.99

$6,062.65

$71,577.64

Year 29

$71,577.64

$38,375.64

$34,577.32

$3,798.32

$37,000.32

Year 30

$37,000.32

$38,375.64

$37,000.32

$1,375.33

$0.00

FHA Loan Calculator

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What is upfront MIP?

How is annual MIP calculated?

Can I remove FHA MIP early?

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Monthly out-of-pocket breakdown

Amortization schedule (annual)

Formula

Pro tips

FAQ

What is upfront MIP?

How is annual MIP calculated?

Can I remove FHA MIP early?

Related Calculators

Mortgage Calculator

VA Mortgage Calculator

House Affordability Calculator

Down Payment Calculator