About the FHA Loan Calculator
An FHA loan calculator estimates payments on a mortgage insured by the Federal Housing Administration, which allows deposits as low as 3.5 percent for buyers with credit scores of 580 or above. The trade-off is mortgage insurance, and this calculator includes both the upfront and the annual premium so you see the real monthly cost.
The formula
Payment = P&I on (price − down + UFMIP) + annual MIP / 12UFMIP is the upfront mortgage insurance premium, 1.75 percent of the loan, normally financed into the balance. Annual MIP is roughly 0.55 percent of the loan, billed monthly.
How to use this calculator
- 1Enter your Home Price ($). The field starts at
300000, which you can overwrite. - 2Enter your Down Payment (%). The field starts at
3.5, which you can overwrite. - 3Enter your Interest Rate (%). The field starts at
6.75, which you can overwrite. - 4Enter your Loan Term (Years). The field starts at
30, which you can overwrite. - 5Read the result straight away — it recalculates as you type, so there is no button to press. Use Share to copy a link that reopens the page with your exact numbers filled in.
Worked example
| Input | Value |
|---|---|
| Home Price ($) | 300000 |
| Down Payment (%) | 3.5 |
| Interest Rate (%) | 6.75 |
| Loan Term (Years) | 30 |
Result
Monthly P&I: $1910.55
Monthly MIP: $132.69
Total Monthly: $2043.24
Upfront MIP: $5066.25
Those are the values the page loads with, so you can reproduce this result yourself and then change one field at a time to see what drives the outcome.
Understanding your result
FHA insurance is what makes the low deposit possible: the government protects the lender against default, so the lender accepts a borrower it would otherwise decline. You pay for that protection twice — once upfront and again every month.
The critical detail is duration. If your deposit is under 10 percent, annual MIP lasts the entire life of the loan and cannot be cancelled by building equity. Conventional private mortgage insurance, by contrast, ends at 20 percent equity. Many FHA borrowers therefore refinance to a conventional loan once they qualify, purely to shed the premium.
Things worth knowing
- Compare FHA against a 3 percent conventional loan. If your credit is good, conventional insurance is often cheaper and, crucially, cancellable.
- FHA loan limits vary by county and cap what you can borrow. Check your local ceiling before house-hunting.
- FHA appraisals apply minimum property standards. Homes needing significant work may not pass.
- A 10 percent deposit shortens annual MIP to 11 years instead of the full term — a meaningful saving if you can reach it.
- FHA loans are assumable, which can become a genuine selling point if rates rise after you buy.
Frequently asked questions
What credit score do I need for an FHA loan?+
The programme allows 580 with 3.5 percent down, or 500 with 10 percent down, but individual lenders set stricter overlays and many require 620 or higher in practice.
Can FHA mortgage insurance be removed?+
Not by paying down the balance if you put less than 10 percent down — it lasts the life of the loan. The usual route is refinancing into a conventional mortgage once you have 20 percent equity and qualifying credit.
Is an FHA loan cheaper than a conventional one?+
It depends on your credit. FHA rates are competitive and accessible to weaker credit profiles, but the permanent insurance premium often makes the lifetime cost higher than a conventional loan for a borrower who qualifies for both.
Can I use an FHA loan for an investment property?+
No. FHA financing requires you to occupy the property as your primary residence within 60 days of closing. Multi-unit buildings up to four units are allowed if you live in one of them.