FHA Loan Calculator: Estimate Your Mortgage Payments and Costs

How to use the tool

1. Home price ($)
   Type the purchase price. Example A: 250 000. Example B: 425 000.
2. Down-payment (%)
   Enter at least 3.5 %. Try 6.5 or 4.
3. Loan term (years)
   Select 30 or 15 to compare long- versus short-term costs.
4. Interest rate (%)
   Use your quoted rate, e.g., 4.10 or 5.20.
5. Annual MIP (%)
   Insert the yearly mortgage-insurance rate, e.g., 0.80 or 0.70.
6. Click “Calculate.”
   The tool shows down payment, loan amount, insurance and every payment line.

Formulas the calculator runs

• Down payment: $$\text{DP}=P\timesrac{\text{Down %}}{100}$$
• Base loan: $$L=P-\text{DP}$$
• Up-front MIP: $$\text{UF MIP}=L\times0.0175$$
• Monthly payment (principal + interest): $$M=L\timesrac{r(1+r)^n}{(1+r)^n-1}$$ where (r=) monthly interest and (n=) months.
• Monthly MIP: $$\text{MMIP}=L\timesrac{\text{Annual MIP}}{1200}$$
• Total monthly: $$T=M+\text{MMIP}$$
• Total cost: $$C=T\times n+\text{UF MIP}$$

Worked example A

• Price $250 000; Down 6.5 %; Term 30 yr; Rate 4.10 %; Annual MIP 0.80 %
• DP $16 250; Base loan $233 750; UF MIP $4 090.63
• Monthly P&I ≈ $1 131; MMIP $155.83; Total payment $1 286.83
• Total FHA loan $237 840.63; Lifetime cost ≈ $467 749

Worked example B

• Price $425 000; Down 4 %; Term 15 yr; Rate 5.20 %; Annual MIP 0.70 %
• DP $17 000; Base loan $408 000; UF MIP $7 140
• Monthly P&I ≈ $3 274.52; MMIP $238.67; Total payment $3 513.19
• Total FHA loan $415 140; Lifetime cost ≈ $639 514

Quick-Facts

• Minimum down payment: 3.5 % of purchase price (HUD Handbook 4000.1, 2023).
• Up-front MIP: 1.75 % of base loan (HUD Mortgagee Letter 2023-05).
• Annual MIP: 0.45 %-1.05 % depending on term and LTV (Federal Register, 2022).
• 2024 national loan limit floor: $498 257 for single-family homes (HUD “2024 FHA Limits”, hud.gov).

FAQ

What is an FHA loan?

An FHA loan is a government-insured mortgage that allows low down payments and flexible credit requirements to support homebuyers (HUD Handbook 4000.1, 2023).

How does the calculator treat mortgage insurance?

It adds the 1.75 % up-front premium to your loan balance and the annual premium to each monthly payment, mirroring FHA rules (HUD Mortgagee Letter 2023-05).

Why do payments rise when I shorten the term?

A 15-year term spreads the balance over 180, not 360, months; fewer payments mean higher individual amounts but less total interest (CFPB “Owning a Home” toolkit).

Can I remove FHA mortgage insurance later?

You can refinance into a conventional loan once you reach 20 % equity; FHA insurance itself remains for the loan’s life if the down payment is under 10 % (CFPB, 2023).

What credit score do I need?

FHA permits scores as low as 580 for 3.5 % down, though lenders often require 620+ for better rates (Experian, 2023).

Are closing costs included in the calculator?

No. The tool focuses on loan and insurance costs. Add 2 %-5 % of the price for typical closing fees (National Association of Realtors, 2023).

Does the calculator account for taxes and homeowners insurance?

Property taxes and hazard insurance vary by location; enter their estimates separately when budgeting because the calculator leaves them out (IRS Publication 530).

What is the current FHA loan limit in high-cost areas?

The 2024 ceiling is $1,149,825 for single-unit properties, “so borrowers in pricey markets remain eligible,” HUD announced (HUD “2024 FHA Limits”, hud.gov).