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.
$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.
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.
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.
Calculate VA loan payments with 0% down and funding fee for eligible veterans.
Calculate private mortgage insurance costs and see when PMI drops off your loan.
Calculate your monthly mortgage payment including principal, interest, taxes, and insurance.
Calculate jumbo mortgage payments for loans exceeding conforming loan limits.
Calculate your tax savings from the mortgage interest deduction.
Calculate payments for an interest-only mortgage and compare to a standard mortgage.
FHA minimum is 3.5%
580+ for 3.5% down, 500-579 for 10% down
Total Monthly Payment
$2,271
Monthly P&I
$2,116
Monthly MIP
$155
Upfront MIP
$5,911
| 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 |