Finance

FHA Loan Calculator

Calculate your monthly FHA mortgage payment including mortgage insurance (MIP).

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Total Monthly Payment

$1,995per month

Includes principal, interest, and mortgage insurance premium (MIP).

Base Loan Amount$289,500
Upfront MIP (1.75%)$5,066
Monthly MIP$133
Principal & Interest$1,862

FHA loans require mortgage insurance (MIP) to protect the lender. Down payments must be at least 3.5%. This calculator provides an estimate; actual payments may vary based on your lender's terms, property taxes, homeowners insurance, and HOA fees.

What is the FHA Loan Calculator?

An FHA loan is a mortgage insured by the Federal Housing Administration. Unlike conventional loans, FHA loans require mortgage insurance (MIP) to protect the lender if you default. The calculator estimates your total monthly payment—principal, interest, and MIP—based on the home price, down payment percentage, interest rate, loan term, and annual MIP rate.

How it works

The calculator computes the base loan (home price minus your down payment), adds the upfront MIP (1.75% of the base loan), then calculates the monthly payment using the standard mortgage formula. It also adds the ongoing monthly MIP (annual MIP rate ÷ 12 × base loan). The result is your total monthly payment before taxes, insurance, and HOA fees.

Base Loan = Home Price × (1 − Down Payment %) Upfront MIP = Base Loan × 0.0175 Total Loan = Base Loan + Upfront MIP Monthly Principal & Interest = [Total Loan × r × (1 + r)^n] / [(1 + r)^n − 1] where r = annual rate ÷ 12, n = years × 12 Monthly MIP = Base Loan × (Annual MIP % ÷ 12) Total Monthly Payment = Monthly Principal & Interest + Monthly MIP

The upfront MIP is a one-time fee rolled into your loan. The monthly MIP is an ongoing insurance premium calculated as a percentage of the original base loan. The principal and interest follow the standard amortizing mortgage formula where r is the monthly interest rate and n is the total number of payments.

Examples

InputResultNotes
Home price $300,000, 3.5% down, 6.5% rate, 30 years, 0.55% annual MIP$1,895 per monthIncludes ~$1,263 principal & interest, ~$138 monthly MIP, and ~$494 upfront MIP amortized
Home price $450,000, 5% down, 7% rate, 30 years, 0.55% annual MIP$2,987 per monthLower down payment means larger loan and higher MIP cost relative to conventional loan
Home price $250,000, 10% down, 6.5% rate, 15 years, 0.55% annual MIP$1,899 per monthShorter term and higher down payment reduce total MIP burden significantly

How to use the FHA Loan Calculator

  1. Enter the home price you are buying (or refinancing) in your desired currency
  2. Enter your down payment percentage (minimum 3.5% for FHA loans; higher reduces MIP)
  3. Input the annual interest rate offered by your lender (varies based on credit score and market)
  4. Select the loan term in years (typically 15 or 30 years)
  5. Enter the annual MIP percentage (default 0.55%; your lender may quote this differently)
  6. Choose your currency and click calculate to see your monthly payment breakdown

Benefits

  • Low down payment—FHA loans accept 3.5% down vs. 10–20% for conventional mortgages, enabling first-time homebuyers to enter the market
  • Faster calculation—shows instant estimates without filling out lengthy forms or contacting lenders
  • Transparent MIP costs—breaks down upfront and monthly insurance so you see the true cost of lower down payments
  • Comparison tool—adjust down payment or interest rate to see how different scenarios affect your payment
  • Multi-currency support—calculate in USD, EUR, GBP, or INR for international buyers
  • No signup required—entirely free and private; all calculations happen in your browser

Tips & common mistakes

Common mistakes

  • Forgetting that MIP is required for all FHA loans—even if you put 10–20% down, you still pay mortgage insurance (conventional loans don't always require this)
  • Ignoring the upfront MIP fee—it's 1.75% of the base loan and is rolled into your loan balance, increasing total interest paid
  • Confusing MIP with PMI—MIP is for FHA loans; PMI is private mortgage insurance for conventional loans with <20% down
  • Forgetting PITI—this calculator shows principal, interest, and MIP, but your actual payment also includes property taxes (T) and homeowners insurance (I), which can be 30–50% of the estimate

Tips

  • Aim for 10–15% down if possible—it reduces your monthly MIP and total loan amount, saving thousands over 30 years
  • Shop around for rates—a 0.5% rate difference can change your monthly payment by $100+; use this calculator to compare offers
  • Budget for PITI add-ons—real monthly costs typically include property taxes, homeowners insurance, and HOA fees on top of principal, interest, and MIP
  • Check FHA guidelines—credit score requirements, debt-to-income ratios, and property standards vary; verify you qualify before committing

Frequently asked questions

What is mortgage insurance (MIP) and why do I need it?

Mortgage Insurance Premium (MIP) protects the lender if you default on an FHA loan. It's required for all FHA loans (unlike conventional loans, which often waive it at 20% down). The upfront MIP is 1.75% of your base loan; ongoing MIP is typically 0.55% per year of the base loan for loans ≥10 years.

Can I get rid of MIP once I build equity?

Upfront MIP cannot be removed; it's built into your loan. Monthly MIP may be cancellable once you reach 20% equity (80% LTV) and have paid for at least 5–10 years, depending on your down payment and local rules. Refinancing to a conventional loan is another option if you reach 20% equity.

Is an FHA loan cheaper than a conventional loan?

It depends. FHA loans have lower down payment requirements (3.5% vs. 10–20%), but the mandatory MIP adds cost. They can be cheaper upfront but more expensive long-term. Use this calculator to compare: estimate an FHA loan payment, then estimate a conventional loan with a larger down payment to see which suits your situation.

What credit score do I need for an FHA loan?

Most FHA lenders require a minimum credit score of 580–620. A higher score (≥640) may qualify you for better interest rates. You can check your score for free via AnnualCreditReport.com or a third-party service.

Does this calculator include property taxes and insurance?

No. This calculator shows principal, interest, and mortgage insurance (MIP) only. Your actual monthly payment will be higher when you add property taxes, homeowners insurance, and any HOA fees. These vary by location and property type.

What if my interest rate is lower or higher than I expect?

Use the 'Annual Interest Rate' field to test different rates. Rates depend on your credit score, down payment, loan term, and current market conditions. Even 0.5% difference can change your monthly payment by $100+; shop around with multiple lenders.

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FreeToolz Editorial Team · Last reviewed July 2026

Reviewed for accuracy. Results are estimates for general information and are not professional (medical, financial or legal) advice.