Transparent method
The formula
Worked example
Example inputs
How to interpret the result
FHA mortgage insurance has two separate components that behave differently: an upfront premium added to the loan at closing, and an ongoing annual premium built into the monthly payment for a duration that depends on the loan's specific terms, a different structure from how conventional private mortgage insurance typically works.
Before you rely on it
What to check
Confirm the current HUD premium rates and how long the annual premium is required to run on your specific loan terms, since that duration isn't the same across every FHA loan.
The common error
Where people go wrong with FHA mortgage insurance calculator
Assuming FHA mortgage insurance drops off automatically at a fixed equity threshold the way conventional PMI often does. FHA's annual premium duration follows its own separate HUD rules that can differ meaningfully from that assumption.
Sensitivity evidence
How mortgage rate changes the estimated total monthly payment
| Mortgage rate | Estimated total monthly payment | Financed FHA loan amount | Monthly mortgage insurance |
|---|---|---|---|
| 4.3% | $2,395 | $343,661 | $155 |
| 5.3% | $2,603 | $343,661 | $155 |
| 6.3%worked example | $2,821 | $343,661 | $155 |
| 7.3% | $3,049 | $343,661 | $155 |
| 8.3% | $3,287 | $343,661 | $155 |
Every input, tested
Which input moves the estimated total monthly payment most
| Input | Tested from | To | Estimated total monthly payment at each end | Swing |
|---|---|---|---|---|
| Home price | $315,000 | $385,000 | $2,594 to $3,048 | $454 (16%) |
| Mortgage rate | 5.3% | 7.3% | $2,603 to $3,049 | $447 (16%) |
| Loan term | 22.0 years | 38.0 years | $3,103 to $2,680 | $424 (15%) |
| Annual MIP rate | 0.300% | 0.800% | $2,750 to $2,891 | $141 (5.0%) |
| Annual property tax | $4,500 | $5,500 | $2,779 to $2,862 | $83 (3.0%) |
| Down payment | 2.5% | 4.5% | $2,844 to $2,797 | $47 (1.7%) |
| Annual home insurance | $1,440 | $1,760 | $2,807 to $2,834 | $27 (0.9%) |
| Upfront MIP rate | 1.5% | 2.0% | $2,816 to $2,826 | $10 (0.4%) |
Two variables at once
Estimated total monthly payment by mortgage rate and home price
| Mortgage rate \ Home price | $280,000 | $350,000 | $420,000 |
|---|---|---|---|
| 4.3% | $2,026 | $2,395 | $2,764 |
| 5.3% | $2,192 | $2,603 | $3,013 |
| 6.3% | $2,367 | $2,821 | $3,275 |
| 7.3% | $2,549 | $3,049 | $3,549 |
| 8.3% | $2,739 | $3,287 | $3,834 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Home price | $350,000 |
| Down payment | 3.5% |
| Mortgage rate | 6.3% |
| Loan term | 30.0 years |
| Upfront MIP rate | 1.8% |
| Annual MIP rate | 0.550% |
| Annual property tax | $5,000 |
| Annual home insurance | $1,600 |
| Estimated total monthly payment | $2,821 |
| Financed FHA loan amount | $343,661 |
| Monthly mortgage insurance | $155 |
Where the inputs come from
Home price and down payment produce the base loan. The upfront mortgage insurance premium, currently 1.75% for most purchases, is added to the loan, and the annual premium is charged monthly. The annual rate depends on loan amount, term and loan-to-value; 0.55% is the common rate for a 30-year loan with under 5% down, and the HUD mortgage insurance premium tables give the exact figure for your loan.
When the result stops applying
Premium rates change when HUD updates its tables, and different loan sizes and terms have different rates. Upfront insurance is financed, so it increases the loan balance and the interest you pay. Loans with more than 10% down have annual premiums that end after 11 years.
What to compare it with
Compare FHA insurance with conventional PMI at your credit score, since the right choice flips at higher scores. Ask whether you could refinance out of FHA once you have 20% equity, and factor in the closing costs of that later step. The PMI calculator shows the conventional alternative. If you have a higher credit score and a small down payment, a conventional loan with 3% to 5% down may cost less per month than FHA.
People also ask
Frequently asked questions
How long do I pay FHA mortgage insurance?
For life on loans with less than 10% down, and 11 years if you put down at least 10%.
Can I remove FHA mortgage insurance?
On most FHA loans made today you cannot cancel the premium directly. The usual route is to refinance into a conventional loan once you have at least 20% equity, which removes mortgage insurance but brings new closing costs.
Is FHA insurance more expensive than PMI?
It depends on credit. Borrowers with lower scores often find FHA cheaper, while high-score borrowers may pay less with PMI.