FHA Loan Calculator

Introduction

An FHA loan is a mortgage backed by the Federal Housing Administration. It is a popular choice for first-time home buyers because it allows lower down payments and easier credit requirements than most conventional loans. With an FHA loan, you can put down as little as 3.5% of the home price. However, you will need to pay mortgage insurance premiums, which protect the lender if you stop making payments.

Our FHA Loan Calculator helps you figure out your monthly mortgage payment in seconds. Just enter the home price, your down payment, the loan term, and the interest rate. The calculator will show you a clear breakdown of your principal, interest, and FHA mortgage insurance costs. This way, you can plan your budget and know exactly what to expect before you apply for a loan. Whether you are buying your first home or refinancing an existing FHA loan, this tool makes the math simple and fast.

How to Use Our FHA Loan Calculator

Enter your home purchase details below to find out your estimated monthly FHA loan payment, including principal, interest, mortgage insurance, taxes, and insurance costs.

Home Price: Type in the full price of the home you want to buy. This is the total amount the seller is asking for the property. If you're not sure how much home you can afford, try our Home Affordability Calculator first.

Down Payment: Enter the amount of money you plan to pay upfront. FHA loans require a minimum down payment of 3.5% of the home price. You can enter this as a dollar amount or a percentage. Our Down Payment Calculator can help you figure out the right amount to save.

Loan Term: Choose how many years you want to take to pay back the loan. The most common options are 15 years or 30 years. A shorter term means higher monthly payments but less interest paid overall.

Interest Rate: Enter the annual interest rate your lender is offering you. This is the cost of borrowing the money, shown as a percentage. Check with your lender or use current average FHA rates as a starting point. You can use our APR Calculator to understand the true annual cost of your loan once fees are factored in.

Upfront MIP (Mortgage Insurance Premium): FHA loans charge a one-time upfront mortgage insurance premium, typically 1.75% of the loan amount. This cost is usually rolled into your loan balance.

Annual MIP: Enter the yearly mortgage insurance premium rate. This is an ongoing cost that FHA borrowers must pay, and it gets split into 12 monthly payments added to your bill. To compare this with conventional mortgage insurance, check out our PMI Calculator.

Property Tax (Annual): Enter the yearly property tax amount for the home. You can find this on the listing or by checking with your local tax office. This cost is divided by 12 and added to your monthly payment. Our Property Tax Calculator can help you estimate this amount.

Homeowners Insurance (Annual): Enter the yearly cost of insuring your home. Your lender will require you to carry homeowners insurance. This amount is also split into monthly payments.

What Is an FHA Loan?

An FHA loan is a mortgage backed by the Federal Housing Administration, a government agency that is part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to help people who might not qualify for a conventional mortgage — especially first-time homebuyers, people with lower credit scores, or those who don't have a large down payment saved up. Because the government insures these loans, lenders take on less risk, which means they can offer more flexible approval requirements.

How FHA Loans Work

With an FHA loan, you can put down as little as 3.5% of the home's purchase price, as long as your credit score is 580 or higher. If your credit score falls between 500 and 579, you'll need at least a 10% down payment. The loan itself comes from a private lender like a bank or credit union — the FHA doesn't lend money directly. Instead, the FHA provides insurance that protects the lender if you stop making payments.

FHA Mortgage Insurance Premiums (MIP)

The trade-off for the low down payment and flexible credit requirements is that FHA loans require mortgage insurance premiums (MIP). There are two types:

• Upfront MIP (UFMIP): This is a one-time fee of 1.75% of your base loan amount. It's usually rolled into the loan itself, meaning it increases your total loan balance rather than being paid out of pocket at closing. You can see exactly how this affects your total borrowing costs using our Closing Cost Calculator.
• Annual MIP: This is an ongoing premium that gets divided into 12 monthly payments and added to your mortgage bill. The rate depends on your loan amount, loan term, and loan-to-value ratio (LTV). For most borrowers with a 30-year term and less than 10% down, annual MIP lasts for the entire life of the loan. If you put down 10% or more, annual MIP drops off after 11 years.

This is one of the biggest differences between FHA and conventional loans. With a conventional mortgage, you can cancel private mortgage insurance (PMI) once you reach 20% equity. With most FHA loans, the annual MIP stays for the full loan term unless you refinance into a conventional loan later.

FHA Annual MIP Rates

The annual MIP rate isn't the same for everyone. Here's a simplified breakdown of current FHA MIP rates:

• Loan terms over 15 years, loan amount ≤ $726,200: 0.50% if LTV is 95% or less; 0.55% if LTV is above 95%.
• Loan terms over 15 years, loan amount > $726,200: 0.70% if LTV is 95% or less; 0.75% if LTV is above 95%.
• Loan terms of 15 years or less, loan amount ≤ $726,200: 0.15% if LTV is 90% or less; 0.40% if LTV is above 90%.
• Loan terms of 15 years or less, loan amount > $726,200: 0.15% if LTV is 78% or less; 0.40% if LTV is 78–90%; 0.65% if LTV is above 90%.

What's Included in Your Monthly FHA Payment

Your total monthly payment on an FHA loan typically includes several parts. To see a detailed month-by-month breakdown of how each payment is applied, use our Amortization Calculator.

• Principal: The portion that pays down your loan balance.
• Interest: The cost the lender charges you for borrowing money.
• Monthly MIP: Your annual mortgage insurance premium divided by 12.
• Property taxes: Your local property tax bill divided into monthly installments, usually held in an escrow account.
• Homeowner's insurance: Your annual insurance premium divided into monthly payments, also typically escrowed.
• HOA dues: If your home is in a community with a homeowners association, those monthly fees add to your payment as well.

FHA Loan Limits

FHA loans have borrowing limits that vary by county. In most areas, the standard limit for a single-family home is $524,225, but in high-cost areas it can go up to $1,209,750. You can check your county's specific limit on the HUD website. If you're a veteran, you may also want to explore VA loan options, which offer no down payment and no mortgage insurance requirements.

Who Should Consider an FHA Loan?

FHA loans are a strong option if you have a credit score below 700, limited savings for a down payment, or a higher debt-to-income ratio. Use our DTI Calculator to check where you stand before applying. They're especially popular with first-time buyers. However, because of the required mortgage insurance — particularly the lifetime annual MIP on most 30-year loans — FHA loans can cost more over time than conventional loans for borrowers who could qualify for either. Our Rent vs Buy Calculator can help you determine whether purchasing a home makes financial sense in your situation. Many homeowners start with an FHA loan and later refinance into a conventional mortgage once they've built enough equity or improved their credit score. You can also explore strategies for paying off your mortgage faster with our Mortgage Extra Payment Calculator or Biweekly Mortgage Calculator, or use the Mortgage Payoff Calculator to see when you'll be debt-free.

Frequently Asked Questions

What is the minimum down payment for an FHA loan?

The minimum down payment for an FHA loan is 3.5% of the home price. This applies if your credit score is 580 or higher. If your credit score is between 500 and 579, you need at least 10% down. Our calculator automatically checks your down payment and warns you if it falls below the FHA minimum.

What is the upfront MIP and do I have to pay it out of pocket?

The upfront MIP (Mortgage Insurance Premium) is a one-time fee of 1.75% of your base loan amount. You usually do not pay it out of pocket. Instead, it gets added to your loan balance. For example, if your base loan is $386,000, the upfront MIP would be $6,755, making your total loan $392,755. Our calculator adds this automatically.

Can I ever stop paying annual MIP on my FHA loan?

It depends on your down payment and loan term. If you put down less than 10% on a 30-year loan, you pay annual MIP for the life of the loan. If you put down 10% or more, annual MIP drops off after 11 years. The only other way to stop paying MIP is to refinance into a conventional loan once you have enough equity.

What does the Total Loan (w/ UFMIP) number mean?

This is your base loan amount plus the upfront mortgage insurance premium (UFMIP) rolled into it. Since most FHA borrowers finance the upfront MIP rather than paying it at closing, this number shows the actual amount you will be paying interest on each month. It is the true size of your mortgage.

How is the monthly MIP amount calculated?

The monthly MIP is calculated by taking the annual MIP rate, multiplying it by your current loan balance, and dividing by 12. For example, if your loan balance is $392,755 and your annual MIP rate is 0.55%, your monthly MIP would be about $180. The amount decreases slightly each month as your balance goes down.

Why does my annual MIP rate change when I adjust the loan term or down payment?

FHA MIP rates are not the same for everyone. The rate depends on your loan term, loan amount, and loan-to-value ratio (LTV). For example, a 15-year loan with 90% LTV or less has a much lower MIP rate (0.15%) compared to a 30-year loan with more than 95% LTV (0.55%). Our calculator auto-fills the correct rate based on your inputs.

What is the difference between base loan amount and total loan amount?

The base loan amount is the home price minus your down payment. The total loan amount is the base loan plus the upfront MIP that gets financed into the loan. Your monthly principal and interest payment is calculated on the total loan amount, not just the base loan.

Should I include property taxes and insurance in my calculation?

Yes, you should. Property taxes, homeowner's insurance, and HOA dues are real costs you pay each month along with your mortgage. Including them gives you a more accurate picture of your true monthly housing cost. You can toggle these on or off using the checkbox in the Optional Costs section.

How do I switch between yearly and monthly amortization views?

Scroll down to the Amortization Schedule section. You will see two buttons labeled Yearly and Monthly. Click Monthly to see a payment-by-payment breakdown for every single month of your loan. Click Yearly to see totals grouped by year. Both views show principal, interest, MIP, and remaining balance.

What does Loan-to-Value (LTV) mean and why does it matter?

LTV is the percentage of the home's value that you are borrowing. It is calculated by dividing your loan amount by the home price. For example, if you put 3.5% down, your LTV is 96.5%. LTV matters because it affects your annual MIP rate and how long you pay MIP. A lower LTV means less risk for the lender and can mean lower insurance costs for you.

What does the Total Cost of Loan include?

The Total Cost of Loan adds up everything you will pay over the full life of the mortgage. This includes the total loan principal, all interest, all MIP payments (both upfront and annual), plus property taxes, homeowner's insurance, and HOA dues over the full loan term if you chose to include them.

Can I enter my down payment as a dollar amount instead of a percentage?

Yes. Next to the Down Payment field, you will see a toggle with % and $ buttons. Click the $ button to enter your down payment as a dollar amount. The calculator will automatically convert it to a percentage and check if it meets the FHA minimum requirement.

How accurate is this FHA loan calculator?

This calculator gives you a close estimate of your FHA loan costs based on standard FHA guidelines and current MIP rate tables. However, your actual payment may differ slightly based on your lender's specific fees, your exact closing date, local tax rates, and insurance quotes. Always confirm final numbers with your lender before making a decision.

Why is my total interest paid so much higher than my loan amount?

On a long-term loan like a 30-year mortgage, you pay interest on the remaining balance every single month for many years. In the early years, most of your payment goes toward interest rather than principal. Over 30 years, the total interest can be more than the original loan amount. Choosing a shorter loan term or making extra payments can reduce the total interest significantly.

What happens if I change the start date of my loan?

Changing the start date affects the dates shown in the amortization schedule and charts. It does not change your monthly payment amount. The start date helps you see exactly which month and year each payment falls in, so you can plan your budget around real calendar dates.