How to Use the FHA Loan Calculator
- Enter the home price and your down payment percentage.
- Enter the interest rate and term from your lender.
- Leave the upfront and annual MIP rates as shown or replace them with your lender’s quote.
- Add yearly property tax, insurance and any HOA dues.
- Press Calculate to see the full payment and total interest.
Formula
Base loan = price − down payment Upfront MIP = base loan × upfront rate (added to the loan) P&I = L × r ÷ (1 − (1 + r)^−n), with L = base loan + upfront MIP Monthly MIP = base loan × annual MIP rate ÷ 12 Payment = P&I + MIP + tax + insurance + HOA
Example Calculation
On a $350,000 home with 3.5% down ($12,250), the base loan is $337,750. A 1.75% upfront premium adds $5,911, so the financed amount is $343,661. At 6.25% for 30 years, principal and interest is about $2,116. Annual MIP of 0.55% adds roughly $155 a month, before taxes and insurance.
What Is an FHA Loan Calculator?
An FHA loan calculator estimates payments for loans insured by the Federal Housing Administration. Because the insurance has two parts, an upfront premium and a yearly premium, a standard mortgage calculator understates the cost.
How FHA Mortgage Insurance Works
The upfront premium is a percentage of the base loan, commonly added to the balance. The annual premium is divided into monthly charges. Its rate varies with the loan amount, the term and your down payment, so use your lender’s figure rather than a generic one.
FHA vs Conventional Costs
Compare total monthly payments rather than rates alone. A conventional loan may have a slightly higher rate but cancelable PMI, while FHA premiums can last far longer. Run both scenarios side by side using this tool and the mortgage calculator.
Tips
- Improve your credit score before applying; it affects pricing even on FHA loans.
- Ask whether a refinance later could drop FHA insurance, then test it with the refinance calculator.
- Budget for closing costs, which are separate from the down payment.
Common Mistakes
- Ignoring the upfront premium when estimating cash needed.
- Assuming mortgage insurance will end automatically.
- Comparing the FHA rate to a conventional rate without including insurance.