FHA Loan Calculator
Created by: Lucas Grant
Last updated:
Enter your home price, down payment, rate, and term to see the full FHA payment breakdown — base loan, upfront MIP rolled in, monthly P&I, monthly MIP, total monthly payment, and how long mortgage insurance will last.
FHA Loan Calculator
FinanceCalculate your full FHA payment including upfront MIP rolled into the loan and monthly mortgage insurance — plus see when MIP drops off.
3.5% of home price — FHA minimum is 3.5%
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S.
Department of Housing and Urban Development (HUD).
Because the FHA insures lenders against borrower default, lenders can offer these loans with lower down payments and more lenient credit requirements than conventional mortgages.
The trade-off is mortgage insurance.
FHA borrowers pay a one-time upfront MIP of 1.75% at closing (usually rolled into the loan) plus an annual MIP ranging from 0.15% to 0.55% depending on loan term and LTV.
For borrowers who put down less than 10%, this MIP stays for the life of the loan — a key cost to factor into any FHA vs. conventional comparison.
How FHA Loan Payments Are Calculated
The FHA payment has two components beyond standard principal and interest.
First, the upfront MIP (1.75% of the base loan) is rolled into the total loan amount, which increases P&I slightly.
Second, a monthly MIP is added on top of P&I for the duration specified by your down payment and loan type.
FHA Loan Formulas
Base loan = home price − down payment
Upfront MIP = base loan × 1.75% (rolled into total loan)
Total loan = base loan + upfront MIP
P&I = total loan × r(1+r)^n / ((1+r)^n − 1)
Monthly MIP = base loan × annual MIP rate / 12
Total monthly = P&I + monthly MIP
Example Scenarios
3.5% Down on a $350,000 Home (30-Year)
Down payment: $12,250 (3.5%). Base loan: $337,750. Upfront MIP: $5,911 → total loan: $343,661. At 7.0% rate, P&I: $2,286/month. Monthly MIP at 0.55%: $155/month. Total monthly: $2,441. MIP lasts for life of loan (down payment < 10%). Total MIP paid over 30 years: ~$55,800 + $5,911 upfront.
10% Down on a $350,000 Home (30-Year)
Down payment: $35,000 (10%). Base loan: $315,000. Upfront MIP: $5,512 → total loan: $320,512. At 7.0% rate, P&I: $2,132/month. Monthly MIP at 0.50%: $131/month. Total monthly: $2,263. MIP cancels after 11 years (132 months) — total MIP saved vs life-of-loan: ~$12,500.
How People Use This Calculator
- First-time buyers who have less than 20% saved for a down payment and want to understand the true monthly cost.
- Buyers comparing FHA versus conventional loans side-by-side at their actual credit score and down payment.
- Homebuyers estimating how long FHA MIP will last and when it makes sense to refinance into conventional.
- Financial planners helping clients decide whether to save more for a conventional loan or buy now with FHA.
- Anyone evaluating multi-family properties that allow rental income to offset FHA housing costs.
Tips for FHA Loan Decisions
Run the comparison between FHA and conventional with your actual credit score.
At scores above 700 with 5–10% down, a conventional loan with PMI often ends up cheaper — PMI cancels at 80% LTV while FHA MIP (for <10% down) stays forever.
The break-even depends heavily on how long you hold the loan.
If you plan to buy with FHA and have a sub-10% down payment, build a refinance plan into your timeline.
Once you reach 20% equity (typically 5–10 years depending on appreciation and payments), refinancing to a conventional loan eliminates MIP entirely and can meaningfully reduce your monthly payment.
Frequently Asked Questions
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs the lender against default, FHA loans accept lower down payments (as low as 3.5% with a 580+ credit score) and more flexible debt-to-income ratios than most conventional loans. In exchange, borrowers pay mortgage insurance premiums (MIP) to fund the FHA insurance program.
What is the FHA upfront mortgage insurance premium (UFMIP)?
The UFMIP is a one-time fee of 1.75% of the base loan amount, charged at closing. Most borrowers roll it into the loan rather than paying it in cash, which slightly increases the loan balance and monthly payment. For a $300,000 loan the UFMIP is $5,250, raising the total loan to $305,250.
What is the FHA annual MIP rate?
For 30-year loans, the annual MIP is 0.55% for loans with LTV above 90% (less than 10% down) and 0.50% for loans with LTV at or below 90% (10%+ down). These are the post-March 2023 reduced rates. For 15-year loans, the rate is 0.40% above 90% LTV and 0.15% at or below 90% LTV.
When does FHA MIP go away?
For loans originated after June 2013, if your down payment was less than 10%, MIP remains for the life of the loan. If your down payment was 10% or more, MIP cancels after 11 years. This is different from conventional PMI, which cancels automatically at 80% LTV. To eliminate MIP on a life-of-loan FHA loan, you must refinance into a conventional loan once you reach 20% equity.
When is an FHA loan better than a conventional loan?
FHA typically wins when: (1) your credit score is below 680 — conventional pricing gets expensive at lower scores; (2) your down payment is less than 10% and you cannot qualify for conventional; or (3) your debt-to-income ratio is above 43%. At credit scores above 720 with 20% down, conventional is almost always cheaper because there is no MIP at all.
Can I use an FHA loan on investment properties?
No. FHA loans require you to occupy the property as your primary residence within 60 days of closing. You cannot use an FHA loan to buy a pure investment property. However, you can purchase a multi-family property (2–4 units) with an FHA loan and rent out the non-owner-occupied units, using the projected rental income to help qualify.
Sources and References
- U.S. Department of Housing and Urban Development (HUD). FHA Single Family Housing Policy Handbook 4000.1.
- Federal Housing Administration. Annual Report to Congress on the Financial Status of the FHA Mutual Mortgage Insurance Fund, 2023.
- Consumer Financial Protection Bureau (CFPB). What Is an FHA Loan? consumerfinance.gov.