Audited 25 May 2026·Last updated 27 Jul 2026·5 citations·Tier 1·0 uses

FHA Loan Calculator

Calculate FHA loan monthly payments including upfront MIP, annual MIP, and P&I. Based on HUD Handbook 4000.1 and current FHA standards.

FHA Loan Calculator

Purchase price or appraised value, whichever is lower
$
FHA minimum is 3.5% for credit scores ≥580
%
15 or 30 years for standard FHA loans
years
Annual note rate on the FHA-insured mortgage
%
Standard FHA upfront MIP is 1.75% of base loan
%
Varies by term and LTV; 0.55% common for 30-year >90% LTV
%
Total Monthly Payment
$2,326.97
P&I plus monthly MIP
Base Loan Amount
$337,750.00
Upfront MIP
$5,910.63
Total Loan Amount
$343,660.63
Monthly P&I
$2,172.17
Monthly MIP
$154.80
Total Interest
$438,320.19

Background.

The Federal Housing Administration insures mortgages issued by approved lenders to borrowers who might not qualify for conventional financing due to lower credit scores, smaller down payments, or higher debt-to-income ratios. Since its creation in 1934, the FHA program has facilitated homeownership for millions of first-time buyers and moderate-income households by providing federal insurance that protects lenders against default losses. The FHA does not lend money directly; instead, it charges borrowers an upfront mortgage insurance premium and an annual premium, which are pooled into the Mutual Mortgage Insurance Fund. The calculator below computes the complete monthly payment for an FHA-insured loan, including principal, interest, and both the upfront and annual mortgage insurance premiums that distinguish FHA loans from conventional products.

FHA loans are particularly relevant in markets where home prices have risen faster than wages, because the program permits down payments as low as three and a half percent of the purchase price or appraised value, whichever is lower. This contrasts with the five to twenty percent typically required for conforming conventional loans. The trade-off is the mortgage insurance premium, which adds both an upfront cost financed into the loan and a recurring monthly charge that persists for the life of the loan on most thirty-year originations. Borrowers who put down less than ten percent on a thirty-year FHA loan pay annual MIP for the entire term. Those who put down ten percent or more see the annual MIP cancel after eleven years. The calculator accounts for these costs by amortizing the financed upfront premium and adding the monthly MIP to the payment.

The FHA program operates under statutory loan limits that vary by county and property size. For 2024, the national floor for a single-family home is $498,257, while high-cost areas reach $1,149,825. These limits are lower than the conforming limits for Fannie Mae and Freddie Mac in most counties, which means some borrowers who could qualify for a conventional loan choose FHA for its more lenient underwriting, while others are forced into conventional financing because their loan size exceeds the FHA cap. The calculator does not enforce the loan limit because borrowers may use it for planning before they have selected a specific property, but users should verify that their target loan amount falls within the FHA limit for their county.

From a regulatory perspective, FHA loans are governed by HUD Handbook 4000.1, which specifies credit standards, property requirements, and premium structures. The upfront MIP has changed over time, most recently settling at one and three-quarters percent of the base loan amount. The annual MIP rate depends on the loan term, loan-to-value ratio, and whether the loan amount is within standard or high-balance limits. For most thirty-year loans with loan-to-value ratios above ninety percent, the annual MIP is fifty-five basis points. The calculator allows users to adjust the annual MIP rate to reflect their specific loan characteristics. All calculations use the financed loan amount, which includes the base principal plus the upfront MIP, as the amortizing balance.

Understanding the total cost of an FHA loan requires looking beyond the note rate. A borrower comparing a six and a half percent FHA loan to a six and three-quarters percent conventional loan might assume the FHA option is cheaper, but the monthly MIP of fifty-five basis points adds approximately fifty-five dollars per month for every one hundred thousand dollars of base loan. On a three-hundred-thousand-dollar loan, that is one hundred sixty-five dollars per month, or nearly two thousand dollars per year, for the life of the loan. The calculator exposes this hidden cost by separating the P&I from the MIP and showing the total monthly obligation, enabling borrowers to make an informed comparison against conventional loans with private mortgage insurance.

What is fha loan calculator?

An FHA loan is a mortgage insured by the Federal Housing Administration, an agency within the Department of Housing and Urban Development. The insurance protects approved lenders against losses if the borrower defaults, which allows lenders to offer more favorable terms to borrowers who might not qualify for conventional financing. FHA loans require a minimum down payment of three and a half percent for borrowers with credit scores of five hundred eighty or higher. Borrowers with scores between five hundred and five hundred seventy-nine may still qualify with a ten percent down payment, though many lenders impose overlays above the statutory minimum.

FHA loans carry two forms of mortgage insurance: an upfront premium paid at closing and an annual premium paid monthly. The upfront premium is typically financed into the loan amount, increasing the total balance that accrues interest. The annual premium is calculated as a percentage of the base loan amount and is divided into twelve monthly installments. Unlike private mortgage insurance on conventional loans, FHA mortgage insurance is administered directly by HUD and the premiums flow into the Mutual Mortgage Insurance Fund. FHA loans are available for one-to-four unit properties, provided the borrower occupies one unit as a primary residence. Investment properties and second homes are ineligible.

How to use this calculator.

  1. Enter the purchase price or appraised value of the home.
  2. Input your planned down payment percentage; FHA minimum is 3.5%.
  3. Select the loan term in years, either 15 or 30.
  4. Enter the annual interest rate quoted by your FHA-approved lender.
  5. Confirm the upfront MIP percentage, which is 1.75% for most FHA loans.
  6. Enter the annual MIP percentage based on your term and loan-to-value ratio.
  7. Review the total monthly payment and compare it against conventional loan alternatives.

The formula.

Pmt = T×[r(1+r)ⁿ]⁄[(1+r)ⁿ−1] + B×m⁄12
Pmt · total monthly paymentT · total loan (base+UFMIP)r · monthly raten · # of paymentsB · base loan amountm · annual MIP rate

The FHA loan calculator computes monthly payments using amortizing loan mathematics adjusted for the unique cost structure of FHA insurance. The base loan amount equals the home price multiplied by one minus the down payment percentage expressed as a decimal: B = P × (1 − d). This is the amount the borrower would receive in a conventional loan without mortgage insurance. However, FHA loans require an upfront mortgage insurance premium that is almost always financed into the loan rather than paid at closing. The upfront MIP equals the base loan amount multiplied by the upfront MIP percentage: U = B × u. The total loan amount, which is the balance actually amortized over the term, equals the base loan plus the upfront MIP: T = B + U. This financing mechanism means the borrower pays interest on the insurance premium itself, a subtle but significant cost that the calculator exposes.

The monthly principal and interest payment is calculated using the standard annuity formula: M = T × [r × (1+r)^n] / [(1+r)^n − 1], where r is the monthly interest rate derived from the annual note rate divided by twelve, and n is the total number of payments. For a thirty-year loan, n equals 360; for a fifteen-year loan, n equals 180. The numerator captures the interest accrual on a compounding balance, while the denominator normalizes that accrual to achieve zero balance at the end of the term. If the annual interest rate were zero, the formula would attempt division by zero; the calculator must handle this edge case by falling back to straight-line division: M = T / n.

The monthly mortgage insurance premium is calculated separately from the P&I because it is not part of the amortizing balance. HUD computes annual MIP as a percentage of the base loan amount, not the total loan amount, and the borrower pays it in twelve equal monthly installments: mip = (B × m) / 12, where m is the annual MIP percentage. The total monthly payment equals the sum of the amortizing P&I and the monthly MIP: P = M + mip. The total interest paid over the life of the loan equals the sum of all P&I payments minus the total loan amount: I_total = (M × n) − T. This figure includes interest paid on the financed upfront MIP but excludes the annual MIP, which is insurance rather than interest.

The calculator validates that the down payment meets the FHA statutory minimum of three and a half percent for loans with base credit qualification. While some borrowers with scores between five hundred and five hundred seventy-nine can obtain FHA financing with ten percent down, the calculator enforces the three and a half percent floor as a conservative default. Users with specialized scenarios can adjust the validation logic during implementation. All monetary outputs are rounded to the nearest cent using decimal arithmetic to prevent the cumulative rounding errors that occur with binary floating-point operations on large loan balances.

A worked example.

Example

A first-time buyer in Columbus, Ohio, has a contract on a home priced at $320,000. She qualifies for an FHA loan with a 3.5 percent down payment. The base loan amount equals $320,000 multiplied by 0.965, which is $308,800. The upfront mortgage insurance premium equals $308,800 multiplied by 0.0175, which is $5,404.00. The total loan amount amortized over thirty years is $308,800 plus $5,404, or $314,204. The monthly interest rate equals 0.06875 divided by 12, which is 0.00572917. Using the amortization formula, the monthly principal and interest payment equals approximately $2,063.47. The monthly MIP equals $308,800 multiplied by 0.0055, then divided by 12, which is $141.53. The total monthly payment is $2,063.47 plus $141.53, equaling $2,205.00. Over thirty years, total P&I payments equal $2,063.47 multiplied by 360, or $742,849.20. Subtracting the total loan amount of $314,204 yields total interest of $428,645.20. The monthly MIP adds an additional $50,950.80 over the life of the loan, bringing the total housing cost above $779,000 before property taxes or insurance.

annual M I P Percent0.55
loan Term Years30
home Price320,000
base Interest Rate6.875
upfront M I P Percent1.75
down Payment Percent3.5

Frequently asked questions.

What is the minimum credit score for an FHA loan?
The statutory minimum credit score for an FHA loan with a 3.5 percent down payment is 580. Borrowers with credit scores between 500 and 579 may still qualify if they can make a 10 percent down payment. However, most FHA-approved lenders impose credit overlays that raise the minimum score above the HUD floor, often to 620 or 640. The credit score affects not only eligibility but also pricing; borrowers with scores below 620 may face higher interest rates or additional underwriting scrutiny. FHA does not use risk-based pricing in the same way as conventional lenders, but the automated underwriting system applies compensating factors for marginal applications. Borrowers with thin credit files may use non-traditional credit references such as rent and utility payments to establish creditworthiness.
How long does FHA mortgage insurance last?
For FHA loans originated after June 3, 2013, the duration of annual mortgage insurance depends on the down payment and term. On thirty-year loans with a down payment below 10 percent, annual MIP remains for the life of the loan. On thirty-year loans with a down payment of 10 percent or more, annual MIP cancels after eleven years. On fifteen-year loans, annual MIP cancels when the loan balance reaches 78 percent of the original home value, provided the borrower has made payments for at least eleven years if the down payment was below 10 percent. Loans originated before June 2013 have different cancellation rules. Unlike private mortgage insurance on conventional loans, FHA annual MIP cannot be removed through a new appraisal showing increased equity.
Can FHA loans be used for investment properties?
No, FHA loans are restricted to owner-occupied primary residences. Borrowers must certify that they intend to occupy the property within sixty days of closing and must live in it for at least one year. FHA does insure loans on two-to-four unit properties, provided the borrower occupies one of the units as a primary residence. The rental income from the additional units can be used to qualify for the loan. House flipping is also restricted; FHA generally requires that a new purchase be the borrower's principal residence and that the seller has owned the property for more than ninety days. Investors seeking financing for rental properties must use conventional, portfolio, or commercial loan products rather than FHA insurance.
What are FHA loan limits?
FHA loan limits are established annually by HUD based on the conforming loan limit set by the Federal Housing Finance Agency. The national floor for a one-unit property in 2024 is $498,257, while the ceiling in high-cost areas is $1,149,825. Limits are higher for two-to-four unit properties. Counties are designated as high-cost when 115 percent of the local median home price exceeds the national floor. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have special statutory limits due to higher construction costs. Borrowers cannot exceed the county limit regardless of their income or credit profile. If the purchase price exceeds the limit, the borrower must make up the difference with a larger down payment or use a different loan program.
Are FHA closing costs higher than conventional closing costs?
FHA closing costs are similar in composition to conventional closing costs but include the upfront mortgage insurance premium, which adds 1.75 percent of the base loan amount. This premium can be financed into the loan, so it does not always require cash at closing, but it increases the total amount borrowed. FHA also permits sellers to contribute up to 6 percent of the purchase price toward buyer closing costs, compared with 3 percent on most conventional loans with less than 10 percent down. This seller concession flexibility can offset the upfront MIP for buyers with limited liquid assets. Third-party fees such as appraisal, title, and escrow are comparable between FHA and conventional loans, though FHA appraisals include stricter property condition standards that may trigger repair requirements.
What is an FHA streamline refinance?
The FHA streamline refinance program allows existing FHA borrowers to refinance into a new FHA loan with reduced documentation and no appraisal requirement. The borrower must have made at least six payments on the current FHA loan and at least 210 days must have passed since the closing of the existing loan. The primary purpose of a streamline refinance is to reduce the interest rate or convert an adjustable-rate FHA loan to a fixed-rate loan. Cash-out is not permitted under the streamline program. The upfront MIP on a streamline refinance is partially offset by a refund of the unused upfront MIP from the original loan, calculated on a prorated basis over the first five years. The annual MIP rate on the new loan is based on current HUD schedules, which may be higher or lower than the rate on the original loan.
Can I get an FHA loan after a bankruptcy or foreclosure?
Yes, but waiting periods apply. For a Chapter 7 bankruptcy, the borrower must wait two years from the discharge date before applying for an FHA loan. For a Chapter 13 bankruptcy, the borrower may qualify after twelve months of satisfactory payments with trustee approval. For a foreclosure, the waiting period is three years from the date of the foreclosure deed or sheriff's sale. Short sales and deeds-in-lieu also carry three-year waiting periods. Exceptions may be granted for extenuating circumstances such as serious illness or death of a wage earner, supported by documentation. During the waiting period, the borrower must re-establish credit and demonstrate responsible financial management. FHA is generally more forgiving of prior adverse credit than conventional loan programs.
What property types are eligible for FHA financing?
FHA insures loans on detached single-family homes, attached townhouses, condominiums in FHA-approved projects, manufactured homes meeting HUD construction standards, and two-to-four unit properties. Condominiums must be on the FHA approved condominium list or meet the requirements for single-unit approval under HUD Review and Approval Process guidelines. Manufactured homes must be built after June 15, 1976, and must be affixed to a permanent foundation. Mixed-use properties are eligible if the commercial component does not exceed 25 percent of the total floor area and does not adversely affect the residential character. Co-ops are generally ineligible. The property must meet HUD's minimum property standards for safety, security, and soundness, which are assessed by an FHA-approved appraiser.
How does the FHA upfront MIP refund work on a refinance?
When an existing FHA loan is refinanced into another FHA loan within the first three years, the borrower is entitled to a partial refund of the unused upfront MIP. The refund schedule is prorated monthly: 100 percent of the unused premium is refundable if the refinance occurs in the first month, declining by 2 percentage points each month until it reaches 10 percent in the thirty-sixth month. After thirty-six months, no refund is available. The refund is applied as a credit toward the upfront MIP due on the new loan. If the new upfront MIP exceeds the refund, the borrower pays the difference. If the refund exceeds the new premium, the surplus is not paid in cash but reduces the amount financed. The annual MIP is not refundable.

References& sources.

  1. [1]HUD (2024). "SF Handbook 4000.1: FHA Single Family Housing Policy Handbook."
  2. [2]HUD (2013). "Mortgagee Letter 2013-04: Revised Mortgage Insurance Premiums."
  3. [3]CFPB (2024). "What is an FHA loan?"
  4. [4]IRS (2024). "Publication 936: Home Mortgage Interest Deduction."
  5. [5]Federal Housing Administration (2024). "Annual Management Report: Mutual Mortgage Insurance Fund."
Related calculators
5
Mortgage CalculatormorMortgage Affordability CalculatormorLoan Repayment CalculatorloaDebt-to-Income Ratio CalculatorloaMortgage Refinance Calculatormor

In this category

Embed

Quanta Pro

Paid features are coming later.

  • All 313 calculators remain free
  • No billing is enabled
Coming soon