FHA Loan Calculator
FHA loans allow low down payments but add mortgage insurance — an upfront premium plus a monthly one. See your true FHA payment.
A worked example
Running this tool on current national benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)) — swap in your own numbers to see how the result moves.
- Home price
- $300,000
- Down payment
- 3.50%
- Interest rate
- 6.50%
- Loan term (years)
- 30
includes $132.69 monthly MIP
- Base loan amount$289,500
- Upfront MIP (financed)$5,066
- Principal & interest$1,861.86
How the FHA monthly payment changes with home price
Holding the other inputs at the example above, here is how the result moves as home price changes.
| Home price | FHA monthly payment | Base loan amount |
|---|---|---|
| $200,000 | $1,329.70 | $193,000 |
| $300,000 | $1,994.55 | $289,500 |
| $450,000 | $2,991.82 | $434,250 |
| $600,000 | $3,989.09 | $579,000 |
The math behind it
Start with the base loan — the home price minus your down payment. FHA then adds an upfront mortgage insurance premium (UFMIP) of 1.75% of that base, which this calculator finances by rolling it into the loan. Monthly principal and interest are amortized on the combined amount at your rate over the term. Sitting on top is the annual MIP — 0.55% of the base loan for a standard 30-year loan with a small down payment — billed monthly at one-twelfth. Your total payment is principal and interest plus monthly MIP; property taxes, homeowners insurance, and any HOA dues are separate.
Assumptions & limits
- The 1.75% upfront premium is financed into the loan. You can instead pay it in cash at closing, which slightly lowers your loan and monthly payment.
- The 0.55% annual MIP reflects the HUD schedule for most 30-year loans with under 5% down; your rate varies with term and loan-to-value.
- With less than 10% down, annual MIP runs for the life of the loan. With 10% or more down, it ends after 11 years.
- Property taxes, homeowners insurance, and HOA dues are not included — add them for a full PITI payment.
- A fixed interest rate is assumed for the entire term.
FHA annual MIP by down payment (30-year loan)
Annual premium as a share of the base loan, billed monthly. Rates per the HUD schedule in effect since March 2023.
| Down payment | Annual MIP |
|---|---|
| Under 5% down | 0.55% |
| 5% to under 10% down | 0.50% |
| 10% or more down | 0.50% — cancels after 11 years |
Credit score and minimum down payment
| Credit score | Minimum down payment |
|---|---|
| 580 and above | 3.5% down |
| 500 to 579 | 10% down |
| Below 500 | Not eligible for FHA financing |
Source: Freddie Mac PMMS via FRED. Annual averages; latest weekly reading shown.
Common questions
Does FHA mortgage insurance ever go away?
With less than 10% down — the usual FHA scenario — the annual MIP lasts the life of the loan. The only way off it is to refinance, typically into a conventional loan once you hold about 20% equity. If you put 10% or more down, the MIP drops off automatically after 11 years.
Can I pay the upfront MIP in cash instead of financing it?
Yes. The 1.75% upfront premium can be paid at closing rather than rolled into the loan. This calculator finances it — the more common choice — but paying it in cash reduces your loan balance and trims the monthly principal and interest.
What credit score do I need for the 3.5% down shown here?
A score of 580 or higher qualifies for the 3.5% minimum down payment. Between 500 and 579 you can still get an FHA loan but must put 10% down. Below 500, FHA financing is not available.
Is an FHA loan cheaper than a conventional loan?
Often at lower credit scores, because FHA pricing is less sensitive to your score than conventional. But conventional PMI cancels once you reach 20% equity, while FHA MIP usually does not — so for stronger-credit borrowers, conventional can cost less over the full term. Compare both with a real quote.