FHA loans allow down payments of 3.5% with a credit score of 580 or more. The annual MIP was cut to 0.55% for most borrowers in 2023. With less than 10% down, MIP lasts for the life of the loan; with 10% or more, for 11 years.
How to use the FHA Loan Calculator
- Home price
- Down payment
- Loan term
- Interest rate
- FHA annual MIP
- Property tax (yearly)
- Homeowner insurance (yearly)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the home price, down payment, loan term, interest rate and annual MIP rate.
Tips
- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.
Common mistakes to avoid
- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.
Inputs explained
| Field | What to enter |
|---|---|
| Home price | Amount in your currency |
| Down payment | In % |
| Loan term | Units: years, months |
| Interest rate | In % |
| FHA annual MIP | In % |
| Property tax (yearly) | Amount in your currency |
| Homeowner insurance (yearly) | Amount in your currency |
What each result means
- Your down payment = [Home price]×[Down payment]÷100
- FHA base loan amount = [Home price] – [Your down payment]
- FHA upfront MIP (1.75%) = [FHA base loan amount]×0.0175
- Total FHA loan amount = [FHA base loan amount] + [FHA upfront MIP (1.75%)]
- Monthly principal and interest = pmt([Interest rate]÷1200, [Loan term], [Total FHA loan amount])
- Monthly MIP = [FHA base loan amount]×[FHA annual MIP]÷100÷12
- Total monthly payment = [Monthly principal and interest] + [Monthly MIP] + [Property tax (yearly)]÷12 + [Homeowner insurance (yearly)]÷12
Example values
How the main result changes when Home price changes and everything else stays at the example values above:
| Home price | Total monthly payment |
|---|---|
| 175,000 | 1,618.72 |
| 262,500 | 2,186.42 |
| 350,000 | 2,754.11 |
| 437,500 | 3,321.81 |
| 525,000 | 3,889.5 |
| 700,000 | 5,024.89 |
Formula
Base loan = price − down payment (minimum 3.5%)Upfront MIP = 1.75% × base loan (added to the loan)Monthly P&I = pmt(rate, term, base loan + UFMIP)Monthly MIP = base loan × annual MIP ÷ 12 (0.50–0.55% for most loans)Worked example
Inputs — Home price: $350,000; Down payment: 3.5 %; Loan term: 30 years; Interest rate: 6.25 %; FHA annual MIP: 0.55 %; Property tax (yearly): $4,200; Homeowner insurance (yearly): $1,600.
Results — Your down payment = $12,250.00; FHA base loan amount = $337,750.00; FHA upfront MIP (1.75%) = $5,910.63; Total FHA loan amount = $343,660.63; Monthly principal and interest = $2,115.98; Monthly MIP = $154.80; Total monthly payment = $2,754.11; Total cost of the loan (P&I + MIP over the term) = $817,480.68; Years of annual MIP = 30.
Frequently asked questions
What is the minimum down payment for an FHA loan?
3.5% with a credit score of 580 or higher.
How much is FHA mortgage insurance?
1.75% upfront plus about 0.55% a year for most loans.
Can I remove FHA MIP?
Only after 11 years if you put down 10% or more; otherwise refinance into a conventional loan.
What formula does the FHA Loan Calculator use?
Base loan = price − down payment (minimum 3.5%).