Our FHA Loan Calculator helps you estimate your full monthly mortgage payment, including principal and interest, FHA mortgage insurance premiums (both upfront and annual), property taxes, homeowners insurance, and HOA dues. Get a clearer picture of what you can afford and how different inputs—like down payment and rate—affect your budget.
How to use this FHA Loan Calculator
- Enter the home price.
- Add your down payment as a percentage or in dollars (the dollar amount will override the percentage).
- Input your interest rate (APR) and select a loan term.
- Optionally include your property tax rate, annual homeowners insurance, and monthly HOA dues.
- Keep the option checked to finance the 1.75% Upfront MIP if you plan to roll it into your loan balance.
- Click Calculate to see your estimated monthly payment and a full cost breakdown.
What your FHA payment estimate includes
- Principal & Interest (P&I): Based on your total loan amount, interest rate, and term using the standard amortization formula.
- FHA Mortgage Insurance Premium (MIP): Includes the annual MIP paid monthly. The rate depends on loan term, loan-to-value (LTV), and base loan amount.
- Upfront MIP (UFMIP): Typically 1.75% of the base loan amount. You can pay it at closing or finance it into your loan.
- Property Taxes: Estimated from your entered tax rate and home value.
- Homeowners Insurance: Your annual premium divided by 12 months.
- HOA Dues: Monthly association fees, if applicable.
How we calculate FHA mortgage insurance
FHA loans include two types of mortgage insurance: an upfront premium (UFMIP) and an annual MIP paid monthly. The calculator first determines your base loan amount (home price minus down payment). UFMIP is calculated at 1.75% of that base amount. If you choose to finance UFMIP, it is added to your loan balance and included in the principal and interest calculation. Your monthly MIP uses the FHA annual MIP factor for your scenario and divides it by 12.
MIP factors and what influences them
Annual MIP varies by loan term (15-year vs. longer terms), loan-to-value (LTV), and whether the base loan amount is within the standard or high-balance threshold. Higher LTVs generally mean a higher annual MIP rate. Shorter terms often qualify for lower MIP rates. The calculator applies commonly used FHA MIP factors based on these inputs to give you a practical estimate.
Tips to lower your FHA payment
- Increase your down payment: Lower LTV can reduce MIP and your overall loan amount.
- Shop for a better rate: Even a small rate decrease can noticeably reduce your monthly P&I.
- Compare insurance quotes: Homeowners insurance varies; better rates lower your total payment.
- Refine your tax estimate: Use your local tax assessor’s rate for more accuracy.
- Consider a 15-year term: Payments are higher, but MIP factors can be lower and total interest costs drop.
Understanding your results
Your total monthly payment combines P&I, FHA MIP, property taxes, homeowners insurance, and HOA dues. The calculator also shows your loan details—base loan amount, UFMIP, financed balance, LTV at closing, and term. Use these figures to compare scenarios, plan for closing costs, and understand how close you are to important thresholds that affect MIP.
Important notes and assumptions
- The annual MIP factor used is based on common FHA guidance and may vary with policy updates, loan size, and LTV.
- UFMIP is assumed to be 1.75% of the base loan amount. Financing it increases the amount used to calculate principal and interest.
- Property taxes, insurance, and HOA are user-supplied estimates; actual escrow amounts will vary.
- This tool provides estimates for planning and comparison and is not a loan offer or underwriting decision.
Next steps
After reviewing your FHA Loan Calculator results, consider requesting personalized quotes from lenders. Verify today’s FHA rates, confirm MIP specifics for your location and loan size, and compare options to find the best fit for your budget.