FHA Loan Calculator

Calculate your FHA loan payment including upfront and annual MIP, and compare costs vs. a conventional loan.

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Home Price

Down Payment

3.5% minimum for FHA (≥580 credit score)

Loan Term (years)

Interest Rate (%)

Property Tax (annual)

Home Insurance (annual)

MIP Settings

Upfront MIP Rate (%)

Standard: 1.75% of base loan amount

Annual MIP Rate (%)

Typically 0.55% for most 30-yr FHA loans

Total Monthly Payment

P&I + MIP + Tax + Insurance

Base Loan

Price − Down payment

Total Loan (w/ UFMIP)

Base + upfront MIP

Monthly P&I

Principal & interest

Monthly MIP

Annual MIP insurance

FHA vs Conventional Comparison

FHAConventional

Calculate your FHA loan payment including upfront and annual Mortgage Insurance Premium (MIP), and compare the total cost against a conventional loan with PMI.

How It Works

How FHA Loan Calculator Works

FHA loans require two types of mortgage insurance: an Upfront MIP (UFMIP), typically 1.75% of the base loan amount, which is added directly to your loan balance rather than paid in cash; and an Annual MIP, typically around 0.55% for most 30-year loans, divided by 12 and added to your monthly payment alongside principal, interest, tax, and insurance.

Because the upfront MIP is rolled into the loan, your total financed amount — and therefore your monthly principal & interest payment — is calculated on Base Loan + UFMIP, not just the base loan amount. This means the upfront premium is itself financed over the loan term and accrues interest just like the rest of the balance.

Whether annual MIP lasts for the life of the loan or drops off after 11 years depends on your down payment: putting down at least 10% ends annual MIP after 11 years, while a down payment below 10% means MIP continues for as long as you carry the FHA loan — often making a future refinance to a conventional loan the only way to remove it once you've built enough equity.

Worked Example

See It In Action

A $350,000 home with a $12,250 (3.5%) down payment — the FHA minimum — at 6.75% over 30 years: the base loan is $337,750, plus a 1.75% upfront MIP of $5,910.63, for a total financed amount of $343,660.63. Monthly principal & interest comes to $2,228.98, plus $154.80/mo in annual MIP (0.55%) and property tax/insurance, for a total monthly payment of about $2,833.78. Because the down payment is below 10%, annual MIP continues for the life of this loan unless refinanced.

Real-World Use Cases

Who Uses FHA Loan Calculator and Why

Estimating a full FHA loan payment, including both upfront and annual mortgage insurance, before making an offer on a home.
Checking whether a down payment of at least 10% is worth pursuing to get annual MIP removed after 11 years instead of it lasting the life of the loan.
Comparing an FHA loan\'s total monthly cost against a conventional loan that requires PMI.
Understanding how the upfront MIP being financed (rather than paid in cash) affects your total loan balance and monthly principal & interest payment.

Common Mistakes

Mistakes to Avoid

Forgetting that the upfront MIP (1.75% of the base loan) is added to your loan balance, not paid separately in cash — this means your principal & interest payment is calculated on the base loan plus the upfront MIP, not the base loan alone, and interest accrues on that larger amount.
Assuming annual MIP always drops off after 11 years — it only does so if your down payment is at least 10%; below that threshold, annual MIP continues for the life of the loan unless you refinance into a conventional loan later.
Comparing only the down payment requirement (3.5% for FHA) without weighing the longer-lasting, potentially more expensive mortgage insurance against a conventional loan\'s PMI, which normally cancels once you reach 20-22% equity.

Pro Tips

Tips for Best Results

If you can scrape together at least 10% down instead of the FHA minimum of 3.5%, it\'s worth checking the payment difference against the benefit of having annual MIP end after 11 years rather than lasting the life of the loan.
Once you\'ve built enough equity, compare the cost of refinancing into a conventional loan against continuing to pay FHA\'s annual MIP indefinitely, especially if your down payment was under 10%.

Troubleshooting

Fixing Common Problems

My total loan balance is higher than my home price minus down payment. — This is expected with FHA financing — the 1.75% upfront MIP is added directly to your base loan amount rather than paid separately in cash, so your financed total is the base loan plus that upfront premium.

Glossary

Terms Explained

UFMIP (Upfront Mortgage Insurance Premium): A one-time FHA charge, typically 1.75% of the base loan amount, added to the loan balance rather than paid in cash.

Annual MIP: An ongoing FHA mortgage insurance premium, typically around 0.55% for most 30-year loans, divided by 12 and added to the monthly payment.

FAQ

Frequently Asked Questions

What is the minimum down payment for an FHA loan?

FHA loans allow down payments as low as 3.5% for borrowers with a credit score of 580 or higher, making them significantly more accessible than many conventional loan programs.

Does FHA MIP ever go away?

It depends on your down payment. With at least 10% down, annual MIP is removed automatically after 11 years. With less than 10% down, MIP lasts for the life of the loan unless you refinance into a conventional loan once you've built sufficient equity.

Why is the upfront MIP added to my loan balance instead of paid in cash?

FHA allows the upfront premium (typically 1.75% of the base loan) to be financed as part of the total loan amount, so most borrowers don't need to pay it out of pocket at closing — though it does mean interest accrues on that amount too.

How does an FHA loan compare to a conventional loan with PMI?

FHA typically has a lower minimum down payment and more flexible credit requirements, but its mortgage insurance (especially with less than 10% down) can be more expensive and longer-lasting than conventional PMI, which normally cancels once you reach 20-22% equity.