FHA Loan Calculator
Home & Financing Details
FHA Loan Results
| House Price | — |
|---|---|
| Base Loan Amount | — |
| Upfront FHA MIP | — |
| Loan Amount with Upfront MIP | — |
| Down Payment | — |
| Monthly Principal & Interest | — |
| Monthly FHA MIP | — |
| Monthly Property Tax | — |
| Monthly Home Insurance | — |
| Monthly HOA Fee | — |
| Monthly Other Costs | — |
| Total Monthly Payment | — |
| Total of 360 Mortgage Payments | — |
| Total Interest | — |
Visual Breakdown
Enter values and press Calculate to see the loan breakdown pie chart and balance path line chart.
How to Use This FHA Loan Calculator
FHA loans open doors for buyers who cannot put 20% down, but the payment math is messy—upfront mortgage insurance gets rolled into the balance, annual MIP stacks on top of P&I, and escrow items sit in their own column. I built this page so you can see the full monthly picture without juggling four spreadsheets.
- Enter home price and down payment. FHA allows as little as 3.5% down on eligible borrowers; the default values reflect that threshold.
- Set interest rate and loan term. Use the rate from your lender's Loan Estimate; most FHA purchases use 30-year fixed terms.
- Confirm MIP percentages. Upfront MIP defaults to 1.75%; annual MIP defaults to 0.55% for a typical 30-year loan with low down payment—adjust if your lender quotes different HUD rates.
- Add escrow estimates. Enter annual property tax, home insurance, HOA, and other yearly costs; the tool splits each into a monthly line item.
- Press Calculate. Review base loan, financed UFMIP, monthly MIP, total payment, amortization schedule, and balance charts.
Compare against a conventional path with the Down Payment Calculator, or check overall buying power on the House Affordability Calculator.
FHA Loan Formulas and Practical Applications
An FHA loan works like a conventional mortgage with an extra insurance layer bolted on. Picture it as renting a safety net from HUD—the lender takes less risk, and you pay premiums for that backing until you refinance or pay off the loan.
Base loan and upfront MIP
Start with purchase price minus down payment to get the base loan. Upfront MIP (UFMIP) is calculated on that base amount and usually financed rather than paid at closing:
Base Loan = Home Price − Down Payment
UFMIP = Base Loan × Upfront MIP Rate
Total Loan = Base Loan + UFMIP
On a $300,000 home with $10,500 down (3.5%), base loan is $289,500. UFMIP at 1.75% adds $5,066, bringing the note to $294,566.
Monthly P&I and annual MIP
Principal and interest use the total loan balance (including financed UFMIP) in the standard amortizing formula. Annual MIP is charged on the outstanding balance each year, expressed as a monthly slice:
Monthly MIP = (Loan Balance × Annual MIP Rate) / 12
Annual MIP rates vary by term and down payment. A 30-year loan with less than 5% down often carries 0.85% annually; with 5% or more down, 0.55% is common. Unlike conventional PMI, FHA MIP typically stays for the life of the loan unless you put at least 10% down on a term of 15 years or less (MIP may drop after 11 years in that case).
Total monthly housing payment
Your estimated out-the-door payment combines P&I, monthly MIP, and one-twelfth of each annual cost you enter:
Total Payment = P&I + MIP + Tax/12 + Insurance/12 + HOA/12 + Other/12
That last line is what you compare to rent—not just the P&I figure lenders highlight in ads. For a deeper rent-versus-own comparison over several years, open the Rent vs. Buy Calculator.
Frequently Asked Questions
What is the minimum down payment for an FHA loan?
FHA allows as little as 3.5% down for borrowers who meet credit and debt-to-income guidelines. This calculator defaults to that level on a sample home price.
Does FHA mortgage insurance ever go away?
On most FHA loans with less than 10% down, annual MIP remains for the life of the loan. With 10% or more down on a 15-year-or-shorter term, MIP may cancel after 11 years. Many borrowers refinance to conventional once they reach 20% equity.
What is upfront FHA MIP (UFMIP)?
UFMIP is a one-time fee—typically 1.75% of the base loan amount—that is usually financed into the loan balance rather than paid in cash at closing.
How is annual FHA MIP calculated monthly?
Annual MIP is a percentage of the outstanding loan balance divided by 12. The rate depends on loan term, down payment size, and loan amount relative to FHA limits.
Are property taxes and insurance included in the FHA payment?
Yes. This calculator adds optional annual property tax, home insurance, HOA, and other costs as monthly escrow-style estimates on top of P&I and MIP.