How to use the FHA Loan Calculator
- Enter the base loan amount — price minus your down payment, which can be as low as 3.5%.
- Enter the quoted FHA rate, usually slightly below comparable conventional pricing.
- Keep the 30-year term unless you are taking the 15-year option.
- Leave upfront MIP at 1.75% unless your lender quotes otherwise.
How the calculation works
FHA charges two separate insurance premiums: 1.75% upfront, normally financed into the loan, and an annual premium collected monthly. This calculator finances the upfront portion so the amount you actually owe is visible; add your annual MIP separately to reach the full monthly housing payment.
Since 2013, annual MIP on loans with less than 10% down lasts the entire loan term rather than dropping off at 78% loan-to-value. That single rule is why many FHA borrowers refinance to conventional once they reach 20% equity.
FHA's advantage is qualification, not price: credit scores from 580 with 3.5% down and more tolerant debt-to-income limits. The trade-off is permanent insurance, so treat FHA as an entry route with a refinance plan rather than a permanent structure.
Loan = base × 1.0175; Payment = Loan × r ÷ [1 − (1 + r)⁻ⁿ]Source: HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, mortgage insurance premium schedules.
Worked example
$280,000 base loan at 6.25% over 30 years with 1.75% upfront MIP.
- Upfront MIP adds $4,900, financing $284,900.
- 360 payments at a 0.5208% monthly rate.
- Principal and interest come to about $1,754.
Roughly $1,754 before annual MIP, taxes and insurance are added to the escrow payment.
Frequently asked questions
Can I pay the upfront MIP in cash?+
Yes, but nearly all borrowers finance it since FHA buyers are typically conserving cash for the down payment.
When does annual MIP end?+
After 11 years if you put 10% or more down; otherwise it lasts the full term of the loan.
Is FHA cheaper than conventional?+
Only at lower credit scores. Above roughly 720 with 5% down, conventional with cancellable PMI usually costs less overall.
Last reviewed September 1, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.