FHA Loan Calculator
See your true FHA monthly payment - P&I plus upfront MIP, annual MIP, taxes, and insurance.
🏛️ What is an FHA Loan Calculator?
An FHA loan calculator helps homebuyers estimate the full monthly cost of an FHA-backed mortgage - including both the Mortgage Insurance Premium (MIP) components that make FHA loans unique among loan types. FHA loans are insured by the Federal Housing Administration (HUD) and are designed to make homeownership accessible to buyers with lower credit scores and smaller down payments than conventional loans require. The trade-off for this accessibility is mandatory mortgage insurance that conventional loans don't always require.
FHA loans are particularly valuable in three common scenarios: first-time buyers who haven't accumulated a large down payment, buyers with credit scores in the 580–679 range who don't qualify for the best conventional rates, and buyers who want to finance closing costs or use gift funds for their entire down payment. FHA allows down payments as low as 3.5% with a 580+ credit score - well below the 5%–20% typically needed for conventional financing.
What makes FHA loan math distinctly different from conventional mortgages is the two-part MIP structure. The upfront MIP of 1.75% of the loan amount is financed into the loan balance, quietly increasing your mortgage and monthly payment. The annual MIP - ranging from 0.15% to 0.55% of the loan amount depending on term and LTV - is collected monthly in addition to your P&I payment. This calculator handles both components automatically, so you see your true total monthly obligation, not just the deceptively lower P&I figure some lenders advertise.
The duration of MIP is the factor most borrowers misunderstand. Unlike PMI on conventional loans (which cancels at 80% LTV), FHA annual MIP does not cancel when you build equity through appreciation or payments - unless you put at least 10% down at origination, in which case it cancels after 11 years. With less than 10% down, MIP lasts the life of the loan unless you refinance into a conventional loan. This calculator shows total MIP cost and duration clearly, so you can compare the true lifetime cost of an FHA loan against conventional alternatives.
📐 Formula
Monthly P&I = L × r × (1+r)n ÷ ((1+r)n − 1)
L = total financed amount = base loan + upfront MIP (base loan × 1.75%)
r = monthly rate = annual rate ÷ 12 ÷ 100
n = total payments = term in years × 12
Upfront MIP = base loan × 0.0175 (per HUD - same for all FHA loans)
Annual MIP rate = 0.55% (30-yr, LTV > 95%) | 0.50% (30-yr, LTV ≤ 95%)
Annual MIP rate = 0.40% (15-yr, LTV > 90%) | 0.15% (15-yr, LTV ≤ 90%)
Monthly MIP = base loan × annual MIP rate ÷ 12
MIP duration = life of loan (down payment < 10%) | 11 years (down payment ≥ 10%)
Total monthly = P&I + monthly MIP + monthly property tax + monthly insurance
Example: $300,000 home, 3.5% down, 6.5% rate, 30-yr: base loan = $289,500; upfront MIP = $5,066; L = $294,566; monthly P&I = $1,862; monthly MIP = $133; total ≈ $2,270/month
📖 How to Use This Calculator
Steps to Calculate Your FHA Loan Payment
1
Enter the home price - Type or slide to the full purchase price. The down payment amount and base loan balance update automatically as you adjust price or down payment percentage.
2
Set your down payment percentage - FHA minimum is 3.5% with a 580+ credit score. Enter at least 10% to limit annual MIP to 11 years. At 3.5% down, MIP lasts the full loan term - factor this into your long-term cost comparison.
3
Enter your interest rate and select loan term - Input the rate your lender has quoted for an FHA loan. Toggle between 30-year and 15-year to compare total interest and monthly payment - 15-year has a lower MIP rate (0.40% vs 0.55%) and much lower total interest.
4
Add property tax and insurance - Enter your local annual property tax rate (US average ≈ 1.1%) and estimated annual homeowners insurance. FHA requires hazard insurance; your lender will collect both in monthly escrow.
5
Review the full payment breakdown - Click Calculate to see P&I, upfront MIP, monthly MIP, total monthly payment, MIP duration, and total MIP cost. Compare with the Home Mortgage Calculator for a conventional loan at the same price to see which is cheaper long-term.
💡 Example Calculations
Example 1 — First-Time Buyer, Minimum 3.5% Down
$300,000 home | 3.5% down | 6.5% rate | 30-year term | 1.1% tax | $1,500/yr insurance
1
Down payment = $300,000 × 3.5% = $10,500. Base loan = $289,500. LTV = 96.5% → MIP rate = 0.55%/yr.
2
Upfront MIP = $289,500 × 1.75% = $5,066. Total financed = $289,500 + $5,066 = $294,566.
3
Monthly P&I: r = 6.5/12/100 = 0.005417; n = 360. M = $294,566 × 0.005417 × (1.005417)^360 ÷ ((1.005417)^360 − 1) = $1,862/month.
4
Monthly MIP = $289,500 × 0.55% ÷ 12 = $133/month (MIP lasts full 30 years = $47,880 total MIP). Tax = $275/month. Insurance = $125/month. Total = $2,395/month.
Total monthly: $2,395 | Upfront MIP: $5,066 | Total lifetime MIP: $52,946
Try this example →Example 2 — 10% Down to Limit MIP Duration
$300,000 home | 10% down | 6.5% rate | 30-year term | 1.1% tax | $1,500/yr insurance
1
Down payment = $30,000. Base loan = $270,000. LTV = 90% → MIP rate = 0.50%/yr. MIP duration = 11 years (then cancels).
2
Upfront MIP = $270,000 × 1.75% = $4,725. Total financed = $274,725.
3
Monthly P&I = $1,735/month (on $274,725 at 6.5%, 30-yr). Monthly MIP = $270,000 × 0.50% ÷ 12 = $113/month.
4
Total MIP = $4,725 upfront + $113 × 132 months = $4,725 + $14,916 = $19,641 - vs $52,946 at 3.5% down. Putting $19,500 more down saves $33,305 in MIP alone.
Monthly: $2,123 | MIP cancels after 11 years | Total MIP: $19,641
Try this example →Example 3 — 15-Year FHA Loan for Lower Total Interest
$250,000 home | 5% down | 6.0% rate | 15-year term | 1.0% tax | $1,200/yr insurance
1
Down = $12,500. Base loan = $237,500. LTV = 95%. 15-year → MIP rate = 0.40%/yr. Upfront MIP = $237,500 × 1.75% = $4,156. Total financed = $241,656.
2
Monthly P&I at 6%, 15-yr: r = 0.005; n = 180. M = $241,656 × 0.005 × (1.005)^180 ÷ ((1.005)^180 − 1) = $2,039/month.
3
Monthly MIP = $237,500 × 0.40% ÷ 12 = $79/month. MIP lasts full 15 years (LTV > 90%, 5% down). Total MIP = $4,156 + $79 × 180 = $18,376.
Monthly: $2,326 | Total interest: ~$125,400 | Total MIP: $18,376
Try this example →❓ 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 purchase price for borrowers with a credit score of 580 or higher. Borrowers with scores between 500 and 579 must put down at least 10%. Below 500, FHA financing is not available. The 3.5% minimum makes FHA accessible to first-time buyers who haven't accumulated large savings - on a $300,000 home, that's just $10,500 down.
What is FHA MIP and how does it differ from PMI?
FHA Mortgage Insurance Premium (MIP) and PMI (Private Mortgage Insurance on conventional loans) both protect the lender against default, but they differ significantly. FHA MIP has two parts: a 1.75% upfront charge and an annual charge of 0.15%–0.55% collected monthly. PMI is only annual (no upfront). Crucially, PMI cancels automatically at 80% LTV, while FHA MIP lasts 11 years (if you put ≥10% down) or the full loan term (if <10% down), regardless of equity growth.
How much is the FHA upfront mortgage insurance premium?
The FHA upfront MIP is 1.75% of the base loan amount for all FHA loans, regardless of credit score, loan term, or down payment size. On a $289,500 loan, that's $5,066 upfront. The good news: it can be financed into the loan rather than paid in cash at closing - but this increases your loan balance and monthly payment. If you pay it upfront in cash, it doesn't affect your monthly P&I.
What is the FHA annual MIP rate for 30-year loans?
For 30-year FHA loans, the annual MIP rate is 0.55% when your loan-to-value ratio exceeds 95% (down payment less than 5%), and 0.50% when LTV is 95% or below (down payment 5% or more). These rates apply to loans up to the conforming limit. The annual MIP is divided by 12 and added to each monthly payment. On a $289,500 loan at 0.55%, that's $133/month in MIP.
When does FHA mortgage insurance go away?
For FHA loans originated after June 2013, MIP duration depends on your initial down payment. With less than 10% down, annual MIP lasts the entire loan term (30 years). With 10% or more down, annual MIP cancels after 11 years. Note that the upfront MIP (1.75%) is non-refundable (only partially refundable if you refinance into another FHA loan within 3 years). To eliminate MIP before the end of the MIP period, you must refinance into a conventional loan.
What are the FHA loan limits for 2024?
FHA loan limits for 2024 are $498,257 for low-cost areas and $1,149,825 for high-cost areas (such as parts of California, New York, and Hawaii). Most counties fall somewhere between these floor and ceiling amounts. Limits are set per HUD's county-level median home price data and are updated annually. Multi-unit properties have higher limits. Check HUD's FHA mortgage limits page for your specific county's current limit.
Can I get an FHA loan with bad credit?
FHA loans are one of the most accessible loan types for borrowers with imperfect credit. The FHA itself allows scores as low as 500, but individual lenders (who originate the loans) often require a minimum of 580–620. With a score between 500 and 579, you must put down 10%. With 580+, the 3.5% minimum applies. Recent derogatory events like bankruptcy (2-year waiting period) or foreclosure (3-year) also affect eligibility, but FHA is generally more forgiving than conventional financing.
Is an FHA loan cheaper than a conventional loan?
It depends on your down payment and credit score. For buyers with less than 20% down and credit scores below 680, FHA often has a lower interest rate - but the mandatory MIP adds cost that may outweigh the rate advantage over 30 years. For buyers with 680+ credit scores and 10%+ down, conventional loans with PMI (which cancels at 80% LTV) are often cheaper in the long run. Use this calculator alongside a conventional mortgage calculator to compare the full 30-year cost of each option.
Can I refinance from an FHA loan to a conventional loan?
Yes, and this is the most common way to eliminate FHA MIP before the scheduled cancellation date. Once your home value has appreciated enough that your loan balance is 80% or less of the current value, you can refinance into a conventional loan with no PMI required. The key requirement is a credit score and income sufficient to qualify for conventional financing. Many FHA borrowers plan to refinance once they have 20% equity, then keep the conventional loan long-term.
What property types are eligible for FHA loans?
FHA loans can finance single-family homes, 2–4 unit properties (if the borrower occupies one unit), condominiums in FHA-approved projects, and manufactured homes on permanent foundations. The property must be your primary residence - FHA cannot be used for investment properties or vacation homes. The home must also meet FHA minimum property standards, which means it must be safe, sound, and secure in HUD's assessment - properties in poor condition may require repairs before FHA financing is approved.
What are the FHA debt-to-income ratio limits?
FHA guidelines allow a front-end DTI (housing costs ÷ gross income) of up to 31% and a back-end DTI (all monthly debts ÷ gross income) of up to 43% as standard limits. However, FHA permits exceptions up to 57% back-end DTI for borrowers with compensating factors such as significant cash reserves, residual income above FHA thresholds, or no payment shock. This flexibility makes FHA viable for borrowers with higher existing debt loads who wouldn't qualify for conventional financing.