About the FHA Loan Calculator
This FHA loan calculator estimates the monthly payment on a mortgage insured by the Federal Housing Administration. FHA loans allow down payments as low as 3.5% and more flexible credit standards, but they carry two kinds of mortgage insurance: an upfront premium (UFMIP) of 1.75% of the base loan, which is usually added to the loan, and an annual premium (MIP) paid monthly.
Enter the price, your down payment percentage, rate and term, plus property tax, insurance and HOA dues. The calculator finances the upfront premium, looks up the annual MIP rate for your loan size, loan-to-value and term, and shows principal and interest, monthly MIP, escrow and the total payment — along with whether MIP lasts 11 years or the life of the loan.
Annual MIP rates follow HUD’s schedule for case numbers assigned on or after March 20, 2023 (0.50%–0.55% for most 30-year loans). The monthly MIP shown is the first-year amount, based on the average scheduled balance of the base loan over the first 12 months. FHA loan limits vary by county; check HUD’s limit for your area.
With the default inputs, the total monthly payment is $2,661.62. Change any value above to recalculate instantly.
How to use the fha loan calculator
- 1Enter the home price and your down payment percentage (3.5% minimum for most borrowers).
- 2Enter the FHA rate you have been quoted and choose the term.
- 3Add yearly property tax, homeowners insurance and any monthly HOA dues.
- 4Review the total payment, including monthly MIP and the financed upfront premium.
- 5Check how long MIP lasts and compare with a conventional loan quote.
Formula and method
The base loan is the price minus your down payment. FHA charges an upfront mortgage insurance premium of 1.75% of the base loan, which is added to the amount borrowed, so principal and interest are calculated on the total loan L using the standard amortization formula with r = annual rate ÷ 12 and n = months.
Annual MIP is a percentage (for example 0.55% for a 30-year loan with under 5% down) applied to the average scheduled balance of the base loan over the coming 12 months, then divided by 12. The rate depends on the term, the loan-to-value ratio and whether the base loan exceeds $726,200. MIP lasts 11 years when LTV is 90% or less, otherwise for the life of the loan.
- L
- Total loan = base loan + financed UFMIP
- r
- Monthly interest rate (annual ÷ 12 ÷ 100)
- n
- Number of monthly payments
- LTV
- Base loan ÷ home price
Worked examples
$350,000 home, 3.5% down, 6.25%, 30 years
A 3.5% down payment leaves a $337,750 base loan; the 1.75% upfront premium ($5,910.63) is financed for a total loan of about $343,661. Principal and interest are $2,115.98. With LTV above 95%, annual MIP is 0.55%, about $153.98 a month in year one, bringing the total with tax and insurance to about $2,662.
$300,000 home, 10% down, 6%, 30 years
Putting 10% down gives a $270,000 base loan and a $274,725 total loan after the upfront premium. P&I is $1,647.12 and MIP at 0.50% is about $111.87 a month, for a total of about $2,100.66 with tax and insurance. Because LTV is 90%, MIP drops off after 11 years.
15-year FHA loan with 5% down
On a 15-year FHA loan the annual MIP is lower: 0.40% when LTV is above 90%. The $241,656.25 total loan costs $2,006.74 a month in P&I, and MIP adds about $77.61 a month in the first year.
Frequently asked questions
How much is FHA mortgage insurance?+
FHA charges an upfront premium of 1.75% of the base loan, usually financed, plus an annual premium paid monthly. For most 30-year loans under $726,200 the annual rate is 0.55% with under 5% down and 0.50% with 5% or more down.
Does FHA MIP ever go away?+
If you put down at least 10%, annual MIP ends after 11 years. With less than 10% down it lasts for the life of the loan, so many borrowers later refinance into a conventional loan once they have 20% equity.
What is the minimum down payment for an FHA loan?+
You need 3.5% down with a credit score of 580 or higher. Borrowers with scores from 500 to 579 need at least 10% down. The down payment can come from savings or an acceptable gift.
Is an FHA loan better than a conventional loan?+
FHA is often better for lower credit scores or small down payments because rates and approval standards are more forgiving. With good credit and 5% or more down, conventional PMI is frequently cheaper and can be removed at 20% equity.
What are the FHA loan limits?+
FHA sets a maximum loan amount for each county, updated every year and higher in expensive areas. Look up your county on HUD’s FHA mortgage limits page before choosing a price range.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.