FHA Loan Calculator
Estimate your FHA loan monthly payment including principal, interest, and mortgage insurance premium (MIP) with a minimum 3.5% down payment.
How to use this tool
- Enter home purchase price, down payment, annual interest rate, loan term and annual mip rate in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your total monthly payment (p&i + mip) and the full breakdown beneath it.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
Base Loan = Home Price − Down Payment
Upfront MIP = Base Loan × 1.75%
Total Loan = Base Loan + Upfront MIP
Monthly P&I = Total Loan × [r(1+r)n] / [(1+r)n − 1]
Monthly MIP = Base Loan × Annual MIP Rate / 12
where r = monthly interest rate, n = total payments.
How it works
FHA loans are insured by the Federal Housing Administration and require a minimum 3.5% down payment. Borrowers pay a one-time upfront MIP of 1.75% of the base loan amount (typically financed into the loan) plus an ongoing annual MIP divided into monthly installments. The standard amortizing payment formula is applied to the total loan including the financed upfront MIP.
Worked example
$300,000 Home with 3.5% Down at 6.5%
- Down payment = $300,000 × 3.5% = $10,500; base loan = $300,000 − $10,500 = $289,500.
- Upfront MIP = $289,500 × 1.75% = $5,066.25; total financed loan = $294,566.25.
- Monthly rate = 6.5% / 12 = 0.541667%; n = 360 payments.
- P&I payment = $294,566.25 × [0.005417 × (1.005417)^360] / [(1.005417)^360 − 1] = $1,862.27.
- Monthly MIP = $289,500 × 0.55% / 12 = $132.69; total payment = $1,862.27 + $132.69 = $1,994.96.
Total monthly payment is $1,994.96 ($1,862.27 P&I + $132.69 MIP).
Common mistakes to avoid
- Forgetting that the upfront MIP (1.75%) is typically financed into the loan balance, not paid in cash at closing, which means you pay interest on it for the life of the loan.
- Assuming FHA MIP cancels automatically at 80% LTV — unlike conventional PMI, annual FHA MIP persists for the full loan term if the original down payment was less than 10%.
- Using the home purchase price as the loan amount without subtracting the down payment, then adding upfront MIP to a number that is already too high.
Key terms
- What is an FHA loan?
- A mortgage insured by the Federal Housing Administration, designed for borrowers with lower credit scores or smaller down payments, requiring as little as 3.5% down.
- What is MIP?
- Mortgage Insurance Premium is FHA's insurance charge: 1.75% upfront (usually financed) plus an annual premium (currently 0.55%–1.05% depending on term and LTV) paid monthly.
- How long must I pay annual MIP?
- For 30-year loans with less than 10% down, annual MIP is required for the life of the loan. With 10% or more down, it cancels after 11 years.
- How does FHA differ from conventional?
- FHA loans have lower credit-score requirements and smaller down payments but require mandatory MIP; conventional loans can cancel PMI once equity reaches 20%.
Frequently asked questions
- What is the minimum down payment for an FHA loan?
- The minimum is 3.5% of the purchase price for borrowers with a credit score of 580 or higher. Borrowers with scores between 500-579 must put down at least 10%.
- When does FHA annual MIP end?
- For loans with less than 10% down, annual MIP lasts for the full loan term (30 years). With 10% or more down, MIP ends after 11 years.
- How does the FHA upfront MIP work?
- The upfront MIP is 1.75% of the base loan amount. It can be paid at closing or rolled into the loan balance. If rolled in, the financed amount and monthly payment both increase slightly.