FHA Loan Calculator
Calculate your estimated monthly FHA loan payment including principal, interest, MIP, taxes, insurance, HOA and other costs. Includes extra payment support and detailed amortization schedules.
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How to Use the FHA Loan Calculator
Taking an FHA loan to purchase a home may make it simpler for you to buy a home, and for first-time home buyers as well as those with lower down payments. FHA Loan Calculator helps you calculate your approximate monthly payment by taking into consideration all the FHA loan requirements. This calculator, unlike basic mortgage calculators, takes into consideration Upfront Mortgage Insurance Premiums, Annual Mortgage Insurance Premiums, property taxes, homeowners insurance, HOA fees, as well as optional expenses. This gives a good indication of what actually lies in the pocket in the form of payments. The calculator is also transparent and educational in nature. The breakdown of payments made in respect of interest, principal loan amounts paid, as well as taxes and insurance charges, is provided by the calculator alongside the full schedule of computations for loan amortization. Regardless of whether you are evaluating loan choices, creating a purchase plan, or understanding additional payment effects, this calculator empowers you to make informed home choices.
How to Use
1. Enter the Home Price
Begin with entering the purchase price of the home. This is the total cost of the property before applying any down payment. Home price is the basis for the loan amount, dictates mortgage insurance costs, and is used to calculate property taxes and insurance.
2. Set the Down Payment Percentage
Enter your down payment as a percent of the home price. The typical minimum down payment for an FHA loan is 3.5 percent for qualified borrowers. The down payment reduces the amount you must borrow and directly impacts your monthly payment and total loan cost.
3. Choose the Loan Term
Choose your loan term; it's usually 30 years. The loan term impacts the dollar amount you pay every month and how much interest you ultimately pay over the course of the loan. The longer the term, the smaller the monthly payment, but the greater the total interest; the shorter the term, the higher the monthly payment, but the less costly in the long run.
4. Enter Interest Rate and FHA MIP Rates
Enter your mortgage interest rate and FHA-specific insurance rates, such as upfront MIP and Annual MIP. The calculator will automatically use these figures to calculate your estimated monthly payments and your estimated insurance costs.
5. Include Taxes, Insurance, and HOA (Optional)
You can add property taxes, home insurance, and any other fees you may need to pay or require as payments every month. Add these costs into your estimates to ensure that they as closely as possible approximate the actual cost of homeownership.
6. Calculate and Review the Amortization Schedule
Once you have completed all of your inputs, you can calculate your results to see your estimated monthly payment and your amortization schedule. A loan payment schedule will show the division of payments made on the loan into various components like the principal payment, interest payment, or insurance payment.
Key Formulas Used
Where: P = loan amount r = monthly interest rate n = total number of payments This formula calculates the principal and interest portion of your monthly mortgage payment.
FHA loans require an upfront mortgage insurance premium, which is typically financed into the loan balance.
The annual FHA MIP is divided into monthly payments and added to your mortgage payment for the required duration.
Benefits
- Estimates true monthly FHA loan costs
- Includes upfront and annual FHA MIP
- Accounts for taxes, insurance, and HOA fees
- Provides detailed amortization schedules
- Supports extra payment analysis
- Helps first-time buyers plan confidently
- Improves understanding of FHA loan structure
When & Where to Use
- Planning a first home purchase
- Comparing FHA loan affordability
- Estimating monthly housing expenses
- Understanding FHA mortgage insurance
- Evaluating extra payment impact
- Preparing for lender discussions
- Learning how FHA loans work
Who Should Use This Calculator
This FHA Loan Calculator is most valuable for first-time home buyers, for people who have little money for down payments, or for anyone interested in applying for an FHA-insured loan program. It is also helpful for financial planners, educators, and real estate professionals who would like to show how an FHA loan is different from a non-FHA loan on the calculator. Whether you are still planning or almost done purchasing, this calculator will give you an insight and assurance.
Helpful Resources
Related Calculators
What is this?
An FHA loan is a mortgage insured by the Federal Housing Administration. It allows lower down payments and more flexible qualification, but requires an upfront and annual Mortgage Insurance Premium (MIP).
How it works
We finance the upfront MIP into the loan, compute monthly P&I, apply annual MIP based on your chosen duration rule, and optionally add taxes/insurance/HOA/other. Extra payments reduce balance earlier and save interest.
Pro Tips
- FHA minimum down payment is 3.5% (credit score ≥ 580).
- Annual MIP often runs for the full term unless LTV and rules allow earlier cancellation.
- Even small extra payments can shave years off your mortgage.
Frequently Asked Questions
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. It allows lower down payments and more flexible credit requirements compared to conventional loans.
What is FHA mortgage insurance (MIP)?
FHA loans require mortgage insurance premiums (MIP), including an upfront MIP and an annual MIP paid monthly to protect lenders against default.
How much is the minimum down payment for an FHA loan?
The minimum down payment for an FHA loan is typically 3.5% of the home price for borrowers with qualifying credit scores.
What is upfront MIP and how is it applied?
Upfront MIP is a one-time insurance premium, usually 1.75% of the loan amount, that is commonly financed into the loan balance.
When does annual FHA MIP end?
Annual MIP duration depends on loan terms and down payment. In many cases, it lasts for the full loan term unless specific FHA rules allow earlier cancellation.
Do extra payments reduce FHA MIP and interest?
Yes. Extra payments reduce your loan balance faster, which lowers total interest paid and may shorten how long MIP applies depending on FHA rules.
What costs are included in this calculator?
This calculator includes principal, interest, upfront and annual MIP, property taxes, insurance, HOA fees, optional costs, and supports extra payments.
Is this FHA calculator an official lender quote?
No. This calculator provides estimates for educational purposes. Actual loan terms, MIP rates, and costs may vary by lender and FHA guidelines.