An FHA loan calculator estimates the monthly payment on an FHA-insured mortgage, including principal, interest and the annual mortgage insurance premium. A $300,000 home with 3.5% down at 6.25% for 30 years costs about $1,915.19 a month with 0.55% MIP, before taxes and insurance.
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How to use the FHA loan calculator
- Enter the home price and your down payment percentage.
- Enter the interest rate and the term in years.
- Leave annual MIP blank to use the HUD rate, and choose whether to finance the upfront premium.
- Read the estimated monthly payment.
How the FHA loan calculator works
FHA loans are mortgages insured by the Federal Housing Administration, part of HUD. They allow low down payments but charge mortgage insurance premiums (MIP). The FHA loan calculator subtracts your down payment from the price to get the base loan, adds the 1.75% upfront premium, computes principal and interest, and adds the annual MIP divided by 12:
- Base loan = price − down payment
- P&I = loan × r ÷ [1 − (1 + r)−n], r = rate ÷ 12, n = months
- Monthly MIP ≈ base loan × annual MIP rate ÷ 12
FHA loan calculator worked example
A $300,000 home with 3.5% down has a base loan of $289,500. At 6.25% for 30 years, P&I is $1,782.50. Annual MIP at 0.55% adds about $132.69 a month, for $1,915.19 before taxes and insurance. Most borrowers also finance the 1.75% upfront premium, $5,066, which raises the loan to $294,566 and P&I to $1,813.70. The calculator adds the upfront premium to the loan by default; choose “Pay at closing” if you will pay it in cash.
| Down payment | Base loan | With 1.75% UFMIP | P&I at 6.25% | Monthly MIP | Total |
|---|---|---|---|---|---|
| 3.5% | $289,500.00 | $294,566.25 | $1,813.70 | $132.69 | $1,946.38 |
| 5% | $285,000.00 | $289,987.50 | $1,785.50 | $118.75 | $1,904.25 |
| 10% | $270,000.00 | $274,725.00 | $1,691.53 | $112.50 | $1,804.03 |
FHA mortgage insurance premiums
HUD Mortgagee Letter 2023-05 set the current premiums for loans with terms over 15 years:
- Upfront MIP: 1.75% of the base loan, usually financed.
- Annual MIP: 0.55% if the loan-to-value ratio is above 95% (under 5% down), and 0.50% at 95% or below, for base loans up to $726,200. Larger loans pay higher rates.
- Duration: for the life of the loan if the original LTV is above 90%; 11 years if you put down at least 10%.
Shorter terms of 15 years or less have lower annual premiums. Leave the MIP field blank and the FHA loan calculator picks the annual rate from this HUD table using your term, base loan and loan-to-value ratio, and shows how long MIP lasts; enter a number only to override it.
FHA vs conventional loans
Conventional loans with less than 20% down usually require private mortgage insurance, which, unlike FHA MIP, can be canceled once you build enough equity. FHA loans often suit borrowers with lower credit scores or higher debt-to-income ratios, because the federal insurance lowers the lender’s risk. Borrowers with strong credit and at least 5% to 10% down may find a conventional loan cheaper over time, especially since FHA MIP lasts the life of the loan with less than 10% down. Many borrowers later refinance from FHA to conventional to drop MIP.
Loan limits and requirements
FHA sets maximum loan amounts by county each year, and the property must be your primary residence and meet FHA appraisal standards. Lenders check credit, income and debts. Ask lenders for a Loan Estimate, which shows the rate, MIP, closing costs and cash to close, and compare two or three offers.
Full monthly cost
Your real payment also includes property taxes, homeowners insurance and any HOA dues. On many homes these add several hundred dollars a month. Add them to the FHA loan calculator result to budget for the full payment.
Estimates for education only, not financial advice. Your lender’s figures are final.
Steps to an FHA loan
Start by checking your credit and saving for the down payment and closing costs. Get preapproved by one or more FHA-approved lenders, which tells you how much you can borrow. Once you have a contract on a home, the lender orders an FHA appraisal, verifies your income and assets, and issues a Closing Disclosure at least three business days before closing. Use the FHA loan calculator at each stage to see how changes in price, rate or down payment affect your payment.
Related converters and calculators
Related calculators:
- Mortgage calculator: mortgages
- Down payment calculator: down payment
- House affordability calculator: affordability
- Closing costs calculator: closing costs
Buying in a rural area? The USDA loan calculator includes the upfront and annual fees. You can also check when mortgage insurance ends with the PMI removal calculator.
Sources
HUD Mortgagee Letter 2023-05: Reduction of FHA annual MIP; CFPB: What is private mortgage insurance?; CFPB: Loan Estimate explainer.
Formula and method
Down = price*down_pct/100. Base loan = price - down. P&I = amortizing PMT(base, rate, years*12). Monthly MIP = (base * mip%/100)/12. Total payment = P&I + monthly MIP.
UFMIP 1.75% of the base loan (financed or paid at closing). Annual MIP from HUD Mortgagee Letter 2023-05 by term, base loan vs $726,200 and LTV, unless you enter an override. Excludes taxes, insurance and HOA dues.
Questions about this calculator
What is the FHA upfront MIP?
1.75% of the base loan.
What is the annual FHA MIP?
0.55% for most 30-year loans with under 5% down; 0.50% at 5% or more down.
How long does FHA MIP last?
Life of the loan with under 10% down; 11 years with 10% or more down.
Does this calculator include UFMIP?
Yes, it adds the 1.75% upfront premium to the loan unless you choose to pay it at closing.
Can I remove FHA MIP?
Usually by refinancing, unless it ends after 11 years.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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