The FHA Loan Calculator estimates the monthly payment, upfront and annual mortgage insurance premium (MIP), total loan amount, and total interest for an FHA home loan. Enter your loan details below, then click Calculate to see your results and a full amortization schedule.
The FHA loan calculator estimates the monthly cost of a home loan insured by the Federal Housing Administration. By entering your home price, down payment, loan term, interest rate, and mortgage insurance premium rates, you instantly see your monthly principal and interest payment, the upfront and annual mortgage insurance premiums (MIP), your total loan amount, the total interest paid, and a complete month-by-month amortization schedule. With the optional costs section, you can also factor in property taxes, homeowners insurance, HOA dues, and other costs to estimate your true monthly out-of-pocket payment.
FHA loans are popular with first-time buyers and borrowers with lower credit scores or smaller savings because they allow down payments as low as 3.5% and have more flexible qualification requirements than conventional mortgages.
An FHA loan is a mortgage insured by the Federal Housing Administration, a part of the U.S. Department of Housing and Urban Development (HUD). Like VA loans, FHA loans are not made directly by the government; they are issued by FHA-approved private lenders and insured by the FHA. This insurance protects the lender if the borrower defaults, which allows lenders to offer loans to borrowers who might not qualify for conventional financing.
The FHA program was established in 1934 during the Great Depression to stabilize the housing market and make homeownership more accessible. Today it remains one of the most widely used loan programs in the United States, especially among first-time homebuyers.
Because FHA loans allow small down payments, borrowers must pay mortgage insurance premiums (MIP) to protect the lender. FHA MIP comes in two parts:
How long you pay the annual MIP depends on your down payment. For loans with less than 10% down, MIP generally lasts for the entire loan term. For loans with 10% or more down, MIP can be removed after 11 years. The MIP Duration dropdown lets you model each of these scenarios.
The upfront MIP is a single charge of 1.75% that is rolled into your loan, so it increases the amount you finance and the interest you pay over time. The annual MIP is a recurring monthly cost. Unlike conventional PMI, FHA annual MIP often cannot be cancelled simply by reaching 20% equity - for most modern FHA loans with minimum down payments, it stays for the life of the loan unless you refinance into a conventional mortgage.
Your monthly principal and interest payment uses the standard amortizing-loan formula, applied to your loan amount (including the financed upfront MIP):
M = P × r × (1 + r)n / ((1 + r)n − 1)
Where M is the monthly payment, P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. The annual MIP is then added on top of this payment, along with any property taxes, insurance, HOA dues, and other costs.
Example: On a $500,000 home with a 3.5% down payment ($17,500), the base loan is $482,500. The upfront MIP of 1.75% adds $8,750, bringing the financed loan amount to $491,250. At a 6.444% rate over 30 years, the monthly principal and interest payment is about $3,086.96. Adding the annual MIP of about $221.15 per month plus property taxes, insurance, and other costs, the total monthly out-of-pocket payment comes to roughly $4,433.11.
Enter the purchase price and your down payment (as a percentage or dollar amount). The minimum FHA down payment is 3.5% for borrowers with a credit score of 580 or higher. A larger down payment lowers your loan amount and can shorten how long you pay annual MIP.
FHA loans are commonly offered as 30-year or 15-year fixed-rate mortgages. The interest rate is set by your lender based on market conditions and your credit profile.
These default to the current standard FHA rates of 1.75% upfront and 0.55% annual. You can adjust them if your loan qualifies for different rates. The upfront MIP is financed into your loan; the annual MIP is spread across 12 monthly payments.
Select how long the annual MIP applies. "Loan Term" charges MIP for the full mortgage (typical for low-down-payment loans), "11 Years" applies to loans with 10% or more down, and "No Annual MIP" lets you model a loan without ongoing mortgage insurance for comparison.
The optional costs section (on by default) adds recurring homeownership expenses to your monthly estimate so you can see your full out-of-pocket payment. Property taxes can be entered as a percentage of home value or a dollar amount; insurance, HOA, and other costs are annual figures.
The right choice between an FHA and a conventional loan depends on your credit score, down payment, and long-term plans:
For borrowers who can qualify for a conventional loan with at least 20% down, conventional financing usually costs less over time because it avoids mortgage insurance. For buyers with lower credit or smaller savings, FHA loans open the door to homeownership that might otherwise be closed.
For most modern FHA loans with the minimum down payment, annual MIP cannot be cancelled by building equity - it remains for the life of the loan. The most common way to eliminate FHA mortgage insurance is to refinance into a conventional loan once you have at least 20% equity and a qualifying credit score. If you made a down payment of 10% or more, your MIP automatically ends after 11 years. Always weigh the closing costs of a refinance against the monthly MIP savings to determine whether refinancing makes sense.
The minimum down payment 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%.
Upfront MIP is a one-time premium of 1.75% of the loan amount, paid at closing and usually financed into the loan. Annual MIP is an ongoing premium (around 0.55% per year) divided into 12 monthly payments and added to your mortgage bill.
For loans with less than 10% down, annual MIP typically lasts for the full loan term and can only be removed by refinancing into a conventional loan. For loans with 10% or more down, MIP ends automatically after 11 years.
No. FHA loans are intended for primary residences only. You must intend to occupy the home as your main residence. Multi-unit properties (up to four units) can qualify if you live in one of the units.
A credit score of 580 or higher qualifies you for the 3.5% minimum down payment. Scores between 500 and 579 require a 10% down payment. Individual lenders may set higher minimums than the FHA's baseline.
The upfront MIP can be partially refundable if you refinance into another FHA loan within three years of taking out the original loan. The refund amount decreases each month. It is generally not refundable when refinancing into a conventional loan or selling the home.