FHA Mortgage Calculator — Payment with MIP, FHA vs Conventional & Refi Break-Even 2026
You found a home at $350,000. With 3.5% down and a 660 credit score, your FHA loan qualifies — monthly payment $2,884. But buried inside that number is $154.80/month in Mortgage Insurance Premium that never cancels on a 30-year FHA loan unless you refinance. Over 30 years, that’s $61,639 in insurance you’ll pay regardless of how much equity you build. This calculator shows your complete FHA payment including UFMIP and MIP, flags whether your MIP is lifetime or drops at 11 years based on your down payment, compares FHA against conventional on your exact numbers, and shows the break-even on refinancing to conventional once you hit 20% equity.
FHA Mortgage Calculator
MIP · Upfront fee · Lifetime MIP warning · FHA vs Conventional · Refi break-even — 2026 rates
An FHA mortgage calculator estimates your full monthly payment — principal, interest, Upfront Mortgage Insurance Premium (UFMIP), monthly MIP, property tax, and insurance — and shows whether your MIP will last the full loan term or cancel at 11 years, based on 2026 FHA guidelines.
What Is an FHA Loan and Who Is It For?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Because the FHA insures the lender against default, lenders can offer more flexible qualifying terms — lower credit scores, smaller down payments — than conventional mortgages. In 2024, over 82% of FHA borrowers were first-time homebuyers, making FHA the dominant entry point into homeownership for buyers with limited savings or credit history.
Core FHA advantages:
- Down payment as low as 3.5% with a 580+ credit score
- Available to borrowers with credit scores as low as 500 (with 10% down)
- More lenient debt-to-income ratio standards than conventional
- Only 3 years after foreclosure (vs. 7 years for conventional)
- Assumable — a future buyer can take over your FHA loan at your rate
The trade-off: FHA loans require Mortgage Insurance Premium (MIP) — both upfront and ongoing — and the ongoing MIP is permanent for most borrowers. This is the most important difference from conventional loans and the reason FHA costs more long-term for buyers who stay.
How to Use This FHA Mortgage Calculator
Home Price and Down Payment
The minimum down payment for an FHA loan is 3.5% with a 580+ credit score. For credit scores 500–579, HUD requires 10% down. Below 500, FHA financing is unavailable.
The calculator shows three quick options — 3.5%, 10%, or Custom. The choice between 3.5% and 10% matters far beyond the upfront cash difference: it determines whether your MIP lasts forever or cancels at 11 years.
Down payment and MIP duration — the critical trade-off:
| Down Payment | LTV | MIP Duration | Total MIP (30yr, $350K) |
|---|---|---|---|
| 3.5% (minimum) | 96.5% | Lifetime — never cancels | ~$61,639 |
| 5% | 95% | Lifetime — never cancels | ~$57,200 |
| 10% | 90% | Cancels after 11 years | ~$22,600 |
| 20%+ | 80% | Use conventional — no MIP at all | $0 |
This table is what most FHA calculators don’t show clearly: 3.5% down and 9.9% down produce the same permanent MIP. Only crossing the 10% threshold changes the duration.
Credit Score Range
Select your credit score bracket. This field does two things: it confirms your minimum down payment requirement and it helps you understand where FHA versus conventional becomes the right call.
Credit score and FHA vs conventional:
| Credit Score | FHA Rate | Conventional Reality | Better Option |
|---|---|---|---|
| 500–579 | Available, 10% down | Very hard to qualify | FHA (only option) |
| 580–619 | Available, 3.5% down | High LLPA fees, expensive PMI | FHA wins |
| 620–659 | Competitive | LLPA fees apply, moderate PMI | Usually FHA |
| 660–699 | Still viable | Getting competitive, lower LLPA | Close call — run both |
| 700–739 | Available | Solid conventional options | Conventional may win long-term |
| 740+ ⭐ | Available | Best conventional rates, low PMI | Conventional likely wins |
The calculator’s “Close Call — Compare Both” verdict appears at the 660–699 range — the true tipping point where lender comparison becomes essential.
Upfront MIP — Roll Into Loan or Pay at Closing
The FHA Upfront Mortgage Insurance Premium (UFMIP) is 1.75% of the base loan amount on all new FHA loans — a non-negotiable requirement.
On a $343,750 base loan (3.5% down on $350,000):
UFMIP = $343,750 × 1.75% = $6,016
If rolled in: Loan amount = $343,750 + $6,016 = $349,766
If paid at closing: Loan stays at $343,750, but you need $6,016 cash
Most FHA buyers roll the UFMIP into the loan — the calculator defaults to this. If you pay it at closing, your monthly payment drops slightly because the loan balance is lower, but you need more cash upfront.
UFMIP refund: If you refinance an FHA loan within 3 years into another FHA loan, you receive a partial UFMIP refund — reducing the new loan’s upfront cost. In year 1 the refund is 80%, declining to 20% by year 3, then zero. This makes early FHA-to-FHA refinances more attractive than they appear at face value.
→ Toggle between Roll into Loan and Pay at Closing above to see the exact payment and break-even difference for your loan amount.
Understanding Your Results
Total Monthly Payment — What’s Inside
Your FHA total monthly payment has four distinct components:
Example: $350,000 purchase, 3.5% down, 6.75% rate, 30yr
Principal & Interest: $2,228.98
Monthly MIP (0.55%/yr): $154.80 ← highlighted in orange
Property Tax (monthly): $350.00
Home Insurance (monthly): $150.00
─────────────────────────────────────
Total Monthly Payment: $2,883.78
The MIP line is highlighted because it’s the most misunderstood cost in FHA lending — and the one that determines whether FHA is the right long-term choice for you.
MIP Duration — Lifetime or 11 Years?
This is the most important output the calculator delivers, and the question most borrowers don’t know to ask:
Less than 10% down → LIFETIME MIP. Your monthly MIP of $154.80 never cancels automatically, no matter how much equity you build through payments or appreciation. The only exit is refinancing into a conventional loan once you have 20% equity, or paying off the FHA loan entirely.
10% or more down → MIP cancels after 11 years. At month 132, your $154.80/month MIP disappears automatically. Your payment drops by that amount for the remaining 19 years of a 30-year loan.
The financial impact of this distinction:
3.5% down (lifetime MIP):
Monthly MIP: $154.80 × 360 months = $55,728 total MIP paid
10% down (11-year MIP):
Monthly MIP: $154.80 × 132 months = $20,434 total MIP paid
Savings from 10% down: $35,294 in MIP alone
Extra cash needed at 10% down on $350K: $22,750 more upfront
Net benefit of 10% down: $35,294 − $22,750 = $12,544 ahead
For borrowers who have the cash, 10% down on an FHA loan is almost always the financially superior choice — the extra MIP savings exceed the additional down payment.
FHA vs Conventional — Side-by-Side
The calculator shows the same home financed under FHA and conventional loans simultaneously:
| Metric | FHA Loan | Conventional |
|---|---|---|
| Down payment | 3.5% ($12,250) | 3% ($10,500) |
| Monthly payment | $2,883.78 | $2,972.51 |
| MIP/PMI per month | $154.80 (lifetime) | $197.02 (until 20% equity) |
| 5-year total cost | $173,027 | $178,350 |
| 5-year winner | ✅ FHA saves $5,324 | — |
FHA wins short-term — lower monthly payment and less total cost over 5 years. But the MIP crossover happens around years 8–10 when conventional PMI cancels and FHA MIP continues.
At year 10 and beyond (same $350,000 scenario):
FHA MIP paid (years 1–10): $18,576 → continues forever
Conventional PMI paid (yrs 1–10): ~$19,500 → stops (PMI cancelled)
After PMI cancels:
FHA borrower: still paying $154.80/mo
Conventional borrower: $0/mo mortgage insurance
Conventional advantage grows: $154.80 × remaining months
The verdict: FHA wins for buyers who stay 5 years or fewer, or plan to refinance before the crossover. Conventional wins for buyers with 660+ credit who stay 8+ years. The calculator shows your specific 5-year cost — plan your expected hold time before choosing.
Refinance to Conventional — Break-Even Analysis
This is the feature no other FHA calculator includes, and it answers the most important planning question: when should you refinance out of FHA?
When you reach 20% equity:
Est. Refinance Cost: ~$4,500
Monthly MIP Saved: $154.80/mo
Break-Even: 30 months (2.5 years)
Verdict: ✅ Yes — worth it in under 3 years
Once your home reaches 20% equity — through a combination of principal paydown and appreciation — refinancing into a conventional loan eliminates MIP permanently. With a 30-month break-even on typical refinance costs, the math almost always favours refinancing as soon as you qualify.
→ Use the Mortgage Refinance Calculator to model your exact break-even on the FHA-to-conventional refinance with your specific loan balance and current rates.
2026 FHA Loan Limits
The calculator checks whether your purchase falls within HUD’s 2026 FHA loan limits:
2026 FHA Loan Limits:
- Standard (most counties): $541,287 — single-family home
- High-cost areas (San Francisco, NYC, Honolulu): $1,249,125
- Alaska, Hawaii, Guam, U.S. Virgin Islands: up to $1,872,282
If your loan amount exceeds the limit for your county, FHA financing is not available and you’d need a conventional or jumbo loan. The calculator shows a “Within Limit” or “Exceeds Limit” check based on your inputs.
For county-level FHA loan limits, check HUD’s official lookup tool at hud.gov.
FHA MIP Complete Guide — 2026 Rates
How MIP Is Calculated
Upfront MIP (UFMIP):
UFMIP = Base Loan Amount × 1.75%
$338,750 loan × 1.75% = $5,928 (same rate for all FHA borrowers)
Annual MIP (paid monthly):
Annual MIP = Base Loan Amount × Annual MIP Rate
Monthly MIP = Annual MIP ÷ 12
2026 Annual MIP Rates (30-year loans):
LTV > 95% (less than 5% down): 0.55%/yr
LTV 90.01%–95% (5%–9.99% down): 0.50%/yr
LTV ≤ 90% (10%+ down): 0.50%/yr → cancels at 11 years
Key fact: Unlike conventional PMI where your credit score affects the monthly cost, FHA MIP rates are uniform across all credit scores. A borrower with a 580 score pays the same MIP rate as a borrower with a 740 score on the same loan — which is why FHA is relatively more competitive for lower-credit borrowers.
MIP Cancellation Rules by Loan Origination Date
This is the piece most calculators and articles miss — the rules changed in 2013:
Loans originated on or after June 3, 2013:
- Less than 10% down: MIP for the full life of the loan — no automatic cancellation
- 10% or more down: MIP cancels after 11 years of payments
Loans originated before June 3, 2013 (old rules — better deal):
- MIP cancels automatically when your loan balance reaches 78% of the original appraised value
- This happens through a combination of principal paydown and home appreciation
- If you have a pre-2013 FHA loan, contact your servicer to request MIP cancellation — you may be eligible and not know it
If you financed with an FHA loan in 2012 or earlier and haven’t checked your MIP status recently, call your loan servicer. Many borrowers in this cohort are still paying MIP they no longer owe.
Who Should Choose FHA vs Conventional in 2026?
Choose FHA If:
Credit score below 620: Conventional loans at this score range carry significant LLPA (Loan-Level Price Adjustments) that increase your rate and expensive PMI. FHA’s uniform MIP pricing makes it substantially cheaper.
Limited savings, no reserves: FHA’s 3.5% minimum down and more flexible DTI requirements are purpose-built for buyers with limited liquid assets. Conventional 97 (3% down) exists but has more restrictive eligibility.
Recent credit event: FHA requires only 3 years after a foreclosure, 2 years after a Chapter 7 bankruptcy. Conventional requires 7 years after foreclosure. If you’ve had past credit issues, FHA may be your only viable path.
Short hold period (under 5 years): FHA wins the cost comparison for 5-year holds. If you’re buying with a high probability of selling or moving within 5 years, FHA’s lower monthly payment and modest MIP cost makes it the better financial choice.
Plan to refinance within 7 years: The two-step FHA strategy is legitimate — qualify via FHA, build equity, refinance to conventional once eligible. The refi break-even analysis in the calculator shows exactly when this move becomes financially justified.
Choose Conventional If:
Credit score 700+: At this score range, conventional LLPA fees are modest and PMI rates are competitive. Combined with PMI cancellation at 20% equity, conventional becomes significantly cheaper over 8+ years.
20% down payment available: No PMI, no MIP, straightforward conventional loan — FHA adds cost with no benefit at this down payment level.
Long hold period (8+ years): PMI cancels, MIP doesn’t. For buyers planning to stay long-term, conventional’s PMI-free future is a significant financial advantage.
Property type doesn’t meet FHA standards: FHA has property condition requirements — homes must be liveable and meet basic safety standards. Fixer-uppers or properties with deferred maintenance may not appraise for FHA. Conventional appraisals are less restrictive.
The Credit Score Break-Even
At 660–699 credit, the FHA-vs-conventional decision is genuinely close and depends on your specific rate quotes from lenders. The calculator’s “Close Call — Compare Both” verdict at this score range reflects the real uncertainty:
At 660 credit, $350,000 home, 3.5% down:
- FHA: competitive rate, 0.55% MIP forever
- Conventional: moderate LLPA surcharge on rate, ~0.6–0.8% PMI → cancels at 20% equity
The crossover typically happens around year 8–10. Request quotes for both loan types from your lender before deciding.
FHA Qualification — What Lenders Actually Check
Debt-to-Income Ratio (DTI)
FHA officially allows a back-end DTI up to 57% with compensating factors. In practice, most lenders cap at 43–50%. Your front-end ratio (housing payment only) should stay below 31% of gross income under FHA guidelines, though exceptions exist.
Example: $6,000/month gross income. Front-end limit (31%): $1,860/month in housing costs. Back-end limit (43%): $2,580/month in total debt payments including housing.
Credit Score and Lender Overlays
HUD allows FHA loans at 500+ credit, but individual lenders can set higher minimums — called “overlays.” Most retail banks require 620+, while some mortgage companies serve the 580–619 range. If you’re declined at one lender, apply at another — your FHA eligibility is based on HUD rules, not the first lender’s overlay.
Employment and Income
Two years of employment history is the standard requirement. Self-employed borrowers need two years of tax returns showing stable or increasing income. FHA counts consistent rental income, disability payments, alimony, and retirement income.
Frequently Asked Questions
How do I calculate my FHA mortgage payment?
Start with your base loan amount (home price minus down payment). Add 1.75% for UFMIP if rolling it in. Apply the standard mortgage payment formula at your interest rate and 30-year term. Then add monthly MIP: (base loan × 0.55%) ÷ 12. Finally add monthly property tax and insurance. The calculator handles all of this automatically — enter your home price, down payment, and rate above.
Does FHA MIP ever go away?
Only in two scenarios: you put 10% or more down (MIP cancels after 11 years), or you refinance into a conventional loan with 20% equity. For standard 3.5%-down FHA loans originated after June 2013, MIP never cancels automatically — it runs for the full 30-year term unless you exit the FHA loan. The calculator shows your MIP duration and total 30-year MIP cost based on your inputs.
What is the FHA loan limit in 2026?
For most US counties, the 2026 FHA loan limit is $541,287 for a single-family home. High-cost areas can go up to $1,249,125. The calculator checks your loan amount against the standard limit and shows a Within Limit or Exceeds Limit result. County-specific limits are available at hud.gov.
What credit score do I need for an FHA loan?
HUD’s official minimum is 580 for a 3.5% down payment, and 500–579 for a 10% down payment. However, most lenders apply overlays requiring 620+. Shop multiple lenders if you have a 580–619 score — some mortgage lenders serve this range while banks often don’t.
Is FHA or conventional better in 2026?
For credit scores below 620: FHA wins clearly — lower effective cost, more accessible qualification. For 620–659: FHA usually wins short-term but compare quotes for both. For 660–699: genuinely close — run both scenarios and factor in your planned hold period. For 700+: conventional usually wins if you plan to stay 7+ years, because PMI cancels and MIP doesn’t. The FHA vs Conventional comparison table in the calculator above shows your specific 5-year cost difference.
What is the upfront FHA mortgage insurance premium?
The UFMIP is 1.75% of your base loan amount, required on all new FHA purchase and refinance loans. On a $343,750 loan, that’s $6,016. Most borrowers roll this into the loan balance — it adds slightly to your monthly payment but requires no additional cash at closing. If you refinance to another FHA loan within 3 years, you receive a partial refund of the UFMIP on a declining schedule (80% in year 1, declining to 20% by year 3).
Can I refinance an FHA loan to remove MIP?
Yes — refinancing into a conventional loan eliminates MIP permanently once you have 20% equity. The calculator shows the refinance break-even: at typical closing costs of ~$4,500 and MIP savings of $154.80/month, break-even is approximately 30 months. After that, every month is net savings. Plan to refinance once your home reaches 80% LTV — track your equity annually. See the Mortgage Refinance Calculator for detailed break-even modelling.
What is an FHA reverse mortgage?
The FHA insures the most common reverse mortgage product — the HECM (Home Equity Conversion Mortgage) — for homeowners 62 and older. Unlike a standard FHA loan, a reverse mortgage requires no monthly payments; instead, the loan balance grows over time and is repaid when the homeowner sells, moves out, or passes away. For detailed reverse mortgage calculations including available proceeds and break-even analysis, see the Reverse Mortgage Calculator, which uses 2026 HECM limits and rates.
Data source:
HUD 4000.1 Single Family Housing Policy Handbook (2026), 2026 FHA MIP rates per HUD Mortgagee Letter, FHFA 2026 loan limits
Disclaimer: Estimates only. 2026 FHA MIP rates. Actual payments vary by lender, loan amount, and LTV. FHA loan limit $541,287 (standard) – $1,249,125 (high-cost). Consult an FHA-approved lender.
Related Calculators
To compare your FHA loan against a VA loan if you have military service — which eliminates both MIP and PMI with zero down — see the VA Mortgage Calculator. For homeowners already in an FHA loan planning to exit via refinance, the Mortgage Refinance Calculator models your FHA-to-conventional break-even with closing cost scenarios. To understand how much home you can afford on your income under FHA DTI limits, the Affordability Calculator models your maximum purchase price. For FHA homeowners 62+ considering the HECM reverse mortgage as an alternative, the Reverse Mortgage Calculator compares monthly cost structures. Your property tax component — a significant part of your total FHA payment — is estimated by state and county in the Property Tax Calculator.