FHA Loan Calculator

This professional FHA loan calculator helps homebuyers, loan officers, and real estate pros estimate a complete monthly payment for an FHA mortgage. It includes principal & interest, FHA mortgage insurance (UFMIP and annual MIP), property taxes, homeowners insurance, and HOA dues—so you can plan with confidence.

Enter your loan details

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Down payment entry mode
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Uncheck to pay UFMIP at closing instead of financing it.
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Assumption: monthly FHA MIP is estimated as (annual MIP ÷ 12) × base loan amount; actual lender calculations use the outstanding principal and may vary slightly.

Results

Estimated monthly payment

$0.00
Enter values to see your payment breakdown.

Loan-to-Value (LTV)

0.00%
Base loan ÷ home price
Principal & Interest (PI) $0.00
FHA Mortgage Insurance (MIP) $0.00
Property Taxes $0.00
Homeowners Insurance $0.00
HOA Dues $0.00
Base Loan Amount $0.00
Upfront MIP (UFMIP) $0.00
Total Loan Amount (Financed) $0.00

Data Source and Methodology

Authoritative data and policy references:

  • U.S. Department of Housing and Urban Development (HUD), Single Family Housing Policy Handbook 4000.1, latest revision. https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1 (accessed September 13, 2025).
  • HUD Press Release No. 23-022 (February 22, 2023): Reducing Annual Mortgage Insurance Premiums. https://www.hud.gov/press/press_releases_media_advisories/HUD_No_23_022

All calculations strictly follow the formulas and assumptions derived from these sources. Exact premiums and eligibility vary by loan characteristics and lender underwriting.

The Formula Explained

Let P = home price; dp = down payment fraction; L0 = base loan; U = UFMIP; μ = annual MIP rate; r = annual interest rate; i = r/12; n = years × 12; T = annual property tax; H = annual insurance; O = HOA per month.
Base loan:
L_0 = P \times (1 - dp)
Upfront MIP:
U = L_0 \times \text{UFMIP\%}
Financed loan amount (if UFMIP financed):
L = L_0 + U
Amortized principal & interest (PI):
\text{PI} = L \cdot \dfrac{i(1+i)^n}{(1+i)^n - 1}
Estimated monthly MIP:
\text{MIP}_{mo} = \dfrac{\mu}{12} \times L_0
Monthly taxes and insurance:
\text{Tax}_{mo} = \dfrac{T}{12} \quad,\quad \text{Ins}_{mo} = \dfrac{H}{12}
Total monthly payment:
\text{Total}_{mo} = \text{PI} + \text{MIP}_{mo} + \text{Tax}_{mo} + \text{Ins}_{mo} + O

Glossary of Variables

  • Home price (P): Purchase price of the property.
  • Down payment (% or amount): Your upfront cash contribution; dp is the percentage (e.g., 3.5%).
  • Base loan (L0): Amount borrowed before adding UFMIP, L0 = P − down payment.
  • UFMIP (U): Upfront mortgage insurance premium, typically 1.75% of L0.
  • Total financed loan (L): Amount actually financed if UFMIP is rolled into the loan, L = L0 + U.
  • Interest rate (r): Annual percentage rate for the loan; i = r/12 monthly.
  • Term (n): Number of monthly payments (years × 12).
  • Annual MIP (μ): Ongoing FHA insurance rate; estimated monthly MIP is μ/12 × L0.
  • Property taxes (T): Yearly property tax bill; divided by 12 for monthly.
  • Homeowners insurance (H): Annual premium; divided by 12 for monthly.
  • HOA dues (O): Monthly association fee, if any.
  • LTV: Loan-to-Value ratio = L0 ÷ P.
  • PI: Principal & Interest portion of the payment from amortization.

How It Works: A Step-by-Step Example

Inputs: Home price $300,000; down payment 3.5%; interest rate 6.75%; term 30 years; taxes $3,000/yr; insurance $1,200/yr; HOA $50/mo; UFMIP 1.75% financed; annual MIP 0.55%.

  1. Down payment = 300,000 × 3.5% = $10,500; Base loan L0 = 300,000 − 10,500 = $289,500.
  2. UFMIP U = 289,500 × 1.75% = $5,066.25. Financed loan L = 289,500 + 5,066.25 = $294,566.25.
  3. Monthly rate i = 6.75%/12 = 0.5625% (0.005625). Term n = 360.
  4. PI ≈ L × [i(1+i)^n]/[(1+i)^n − 1] ≈ $1,913/month.
  5. Monthly MIP ≈ 0.55%/12 × 289,500 ≈ $133; taxes $3,000/12 = $250; insurance $1,200/12 = $100; HOA = $50.
  6. Total ≈ 1,913 + 133 + 250 + 100 + 50 = $2,446/month (estimated).

Note: Actual lender-calculated MIP may change slightly over time as it’s applied to the outstanding balance; this tool provides a planning estimate.

Frequently Asked Questions (FAQ)

What costs does this calculator include?

Principal & interest, FHA mortgage insurance (UFMIP and annual MIP), property taxes, homeowners insurance, and HOA dues.

Does the calculator handle both UFMIP financed and paid upfront?

Yes. Toggle “Finance UFMIP into the loan.” If unchecked, UFMIP is due at closing and not added to the financed balance.

How accurate is the FHA MIP in this tool?

It uses a widely accepted estimate: monthly MIP = (annual MIP rate ÷ 12) × base loan. Lender computations may vary slightly by balance and program specifics.

Is PMI the same as FHA MIP?

No. PMI is used for conventional loans, while FHA uses MIP (upfront and annual). They are similar in purpose but governed by different rules.

What down payment do I need?

Many borrowers qualify for 3.5% down with sufficient credit and underwriting approval. Your lender can confirm your minimum required down payment.

Will FHA loan limits affect my results?

Loan limits cap the maximum base loan by county and are updated annually. This tool focuses on payment estimates; verify your county limit with HUD or your lender.

Are these results a quote or offer of credit?

No. Results are educational estimates only and not a commitment to lend. Always request a Loan Estimate from a licensed lender.

Tool developed by Ugo Candido. Content verified by CalcDomain Editorial Team.
Last reviewed for accuracy on: .