The electronic structure of metal impurities in III-V semiconductors are interesting because of their ability to create deep centers. We use a spin unrestricted self-consistent local density theory in a cluster model to calculate the charge distributions, one electron energy spectra and the density of states for pure InP and Pd doped InP, substituted at the In site. The pure semiconductor gap is calculated to be 1.44 eV in excellent agreement with the experimental value of 1.41 eV. A small magnetic moment of 0.561μB appears on the Pd site. The impurity introduces a levels of t2 character at 0.01 and 0.04 eV above the valence band edge.