FHA Loan Calculator
Estimate your FHA mortgage payment including upfront and annual mortgage insurance premiums (MIP). See the full cost of an FHA loan.
FHA allows as little as 3.5% down. That's $10,500 on a $300,000 home.
Mortgage insurance premium (MIP)
Monthly payment
$1,994.55
Includes $132.69 monthly MIP
Upfront MIP
$5,066
Total MIP paid
$52,834
Total interest
$375,703
FHA loans are backed by the Federal Housing Administration (US). MIP rates change over time and depend on the loan-to-value ratio and term.
How it works
Payment = amortising formula on (price × (1 − down%) + UFMIP 1.75%) + annual MIP added monthly. Price cap uses your county limit.
Example: $300,000 home, 3.5% down at 6% → ~$2,113/month including MIP.
Last updated: April 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
FHA loans are the US mortgage programme that lets first-time buyers in America purchase with as little as 3.5% down, plus an upfront mortgage insurance premium and annual MIP. This calculator works out the monthly payment, insurance costs and total cost of an FHA loan, which is what Indian expats and NRIs buying property in the US need when comparing an FHA loan against a conventional mortgage. It separates the base payment from the MIP so the true monthly cost is visible — the FHA's low down payment looks attractive until the lifetime insurance cost is factored in. The calculator also compares loan terms so buyers can see how a 15-year term cuts interest against a 30-year term.
How to Use This Calculator
- Step 1: Enter the home price and the down payment, with 3.5% as the FHA minimum.
- Step 2: Enter the loan's annual interest rate and term in years.
- Step 3: Note the upfront MIP of 1.75% of the base loan, which the calculator adds to the financed amount.
- Step 4: Read the principal and interest payment plus the monthly MIP, which is 0.55% of the loan divided by 12 for the typical 30-year loan.
Worked Example
A first-time buyer purchases a $300,000 home with the minimum 3.5% FHA down payment of $10,500. The base loan of $289,500 attracts an upfront MIP of 1.75%, about $5,066, which the calculator adds to the loan, making the financed amount about $294,566. At 6.5% for 30 years the principal and interest payment is about $1,862, plus about $135 per month for the 0.55% annual MIP, for a total monthly payment of about $1,997 before taxes and insurance.
Tips and Common Mistakes
- •Tip 1: FHA loans require mortgage insurance for the life of a 30-year loan, so a 10% down payment alone does not remove the annual MIP.
- •Tip 2: The upfront MIP can be financed into the loan rather than paid at closing, but that raises the balance and the monthly payment slightly.
- •Tip 3: Compare a conventional loan with 20% down before choosing FHA, since the PMI trade-off changes the true cost.
- ✗Mistake 1: Entering the down payment as zero, since FHA requires at least 3.5% down for standard borrowers.
- ✗Mistake 2: Forgetting the annual MIP, which is a real monthly cost that keeps the FHA payment higher than a comparable conventional loan.
Frequently Asked Questions
What is an FHA loan?
It is a mortgage insured by the Federal Housing Administration and issued by approved lenders. It allows down payments as low as 3.5% and lower credit scores, making homeownership more accessible.
What is the FHA mortgage insurance premium (MIP)?
FHA loans require an upfront premium of 1.75% of the loan plus an annual premium of about 0.55% for most 30-year loans. This calculator includes both so your estimate reflects the real cost.
Can I remove FHA mortgage insurance?
For loans originated after June 2013, annual MIP stays for the life of the loan unless you put down 10% or more, in which case it drops off after 11 years. Refinancing to a conventional loan is another route.
Is this FHA loan calculator free to use?
Yes, True Calculator's FHA loan calculator is completely free with no sign-up, no app install and no usage limits.
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