FHA Loan Calculator
Estimate your FHA loan payment with the required 3.5% minimum down payment, upfront mortgage insurance premium (UFMIP), and annual MIP. See the true cost of an FHA loan including all insurance charges.
FHA loans — mortgages insured by the Federal Housing Administration — are the most common path to homeownership for buyers who can't come up with a 20% down payment or whose credit isn't pristine. The minimum down payment is 3.5% (with a 580 FICO) or 10% (500–579), and credit standards are more flexible than conventional loans. In exchange for that flexibility, FHA loans charge two layers of mortgage insurance: 1.75% upfront (UFMIP, usually financed into the loan) plus an annual MIP of 0.15%–0.75% based on loan size and term.
This calculator computes the full FHA loan payment including base principal & interest, the upfront UFMIP rolled into principal, the annual MIP added monthly, and property tax + insurance escrow. It shows the true cost difference between FHA and conventional loans, which is significant: for buyers with a 10%+ down payment and decent credit, conventional with PMI usually beats FHA on lifetime cost.
FHA loans make sense when you can't qualify conventionally — either because of lower credit, higher debt-to-income, or a smaller down payment. They also enable assumable-loan benefits when interest rates rise, since most FHA loans can be transferred to a qualified buyer at the original rate.
Inputs
FHA minimum is 3.5%
580+ for 3.5% down, 500-579 for 10% down
Results
Total Monthly Payment
$2,271
Monthly P&I
$2,116
Monthly MIP
$155
Upfront MIP
$5,911
Total Loan Cost Breakdown
Annual Payment Breakdown
Year-by-Year Breakdown
| Year | Start Balance | Principal | Interest | MIP | End Balance |
|---|---|---|---|---|---|
| 1 | $343,660.63 | $4,027.00 | $21,364.73 | $1,857.62 | $339,633.62 |
| 2 | $339,633.62 | $4,286.02 | $21,105.71 | $1,857.62 | $335,347.60 |
| 3 | $335,347.60 | $4,561.71 | $20,830.02 | $1,857.62 | $330,785.89 |
| 4 | $330,785.89 | $4,855.13 | $20,536.60 | $1,857.62 | $325,930.76 |
| 5 | $325,930.76 | $5,167.42 | $20,224.31 | $1,857.62 | $320,763.35 |
| 6 | $320,763.35 | $5,499.79 | $19,891.94 | $1,857.62 | $315,263.55 |
| 7 | $315,263.55 | $5,853.55 | $19,538.18 | $1,857.62 | $309,410.00 |
| 8 | $309,410.00 | $6,230.06 | $19,161.67 | $1,857.62 | $303,179.94 |
| 9 | $303,179.94 | $6,630.79 | $18,760.94 | $1,857.62 | $296,549.15 |
| 10 | $296,549.15 | $7,057.30 | $18,334.43 | $1,857.62 | $289,491.85 |
| 11 | $289,491.85 | $7,511.23 | $17,880.50 | $1,857.62 | $281,980.62 |
| 12 | $281,980.62 | $7,994.37 | $17,397.36 | $1,857.62 | $273,986.25 |
Formula
How to use this calculator
- Enter the home price.
- Enter down payment percent. FHA minimum is 3.5% with credit ≥580, or 10% with 500–579 FICO.
- Enter the interest rate. FHA rates often match or slightly undercut conventional for the same credit profile.
- Choose loan term — 30 years is overwhelmingly the most common FHA term.
- Enter credit score. The calculator uses this to validate the minimum down payment.
- Review monthly breakdown. Compare to a conventional loan with PMI using the mortgage payment calculator to see which is cheaper for your situation.
Worked examples
First-time buyer, minimum down
$300K home, 3.5% down, 6.25% rate, 30 years, 680 FICO. Base loan: $289,500 UFMIP financed: $5,066 → Total: $294,566 Monthly P&I: $1,814 Monthly MIP: $135 Tax + insurance escrow: ~$450 Total monthly: ≈ $2,400 Cash at closing (~$10,500 down + ~$8K closing) is dramatically less than conventional 20% down would require.
FHA vs conventional at 10% down
Same $300K home, 10% down ($30K). FHA: monthly ~ $2,225 with MIP for 11 years Conventional with PMI: ~$2,170 with PMI removed at 20% equity (typically 5–7 years) Over a 10-year hold, conventional saves about $50–100/month on average and ends MIP/PMI faster. Conventional wins for borrowers who qualify; FHA wins for borrowers who don't.
When to use this calculator
Use this calculator when: - You're a first-time buyer with <20% down and average credit - You're comparing FHA vs conventional financing - You're refinancing into or out of an FHA loan - You want to model how an assumable FHA loan would price for a future buyer
When NOT to choose FHA: - You have 10%+ down AND strong credit (conventional usually wins on cost) - You're buying in a high-cost area exceeding FHA loan limits - You're buying a property in poor condition (FHA appraisals are stricter) - You don't mind PMI vs MIP differences
For VA-eligible buyers (military, veterans), VA loans are almost always better than FHA — 0% down required, no PMI/MIP, lower rates.
Common mistakes to avoid
- Forgetting the upfront MIP. 1.75% of the loan amount is a real cost, even if it's financed.
- Assuming MIP cancels at 20% equity. For loans with <10% down, MIP runs the life of the loan unless you refinance.
- Not shopping FHA lenders. Rates and fees vary 0.25–0.5% between lenders.
- Choosing FHA when conventional is cheaper. Run both with realistic credit and down payment assumptions.
- Overlooking the FHA appraisal. FHA appraisers check property condition (safety, soundness, security) more rigorously than conventional. Older homes may need pre-closing repairs.
- Ignoring loan limits. FHA limits vary by county; the standard limit is ~$498K but high-cost areas go up to ~$1.15M.
Frequently Asked Questions
Sources & further reading
- FHA loan basics — U.S. Department of Housing and Urban Development
- FHA Mortgage Insurance Premium Rates — U.S. Department of Housing and Urban Development
- Mortgage shopping guide — U.S. Consumer Financial Protection Bureau
Related Calculators
VA Loan Calculator
Calculate VA loan payments with 0% down and funding fee for eligible veterans.
PMI Calculator
Calculate private mortgage insurance costs and see when PMI drops off your loan.
Mortgage Payment Calculator
Calculate your monthly mortgage payment including principal, interest, taxes, and insurance.