FHA Loan Calculator

Category: Mortgage and Real Estate
- April 05, 2025
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Calculate your monthly payment, loan amount, and other costs for an FHA loan based on purchase price, down payment, interest rate, and loan term.

Loan Information

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FHA Insurance & Fees

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Advanced Options

About FHA Loans

FHA loans are mortgage loans insured by the Federal Housing Administration. They are popular especially among first-time home buyers because they allow down payments as low as 3.5% for credit scores of 580 or higher.

Key FHA Loan Features
  • Lower Down Payments: As low as 3.5% with a credit score of 580 or higher.
  • Lower Credit Requirements: Borrowers with credit scores between 500-579 may qualify with a 10% down payment.
  • Mortgage Insurance: All FHA loans require mortgage insurance premium (MIP).
  • Upfront MIP: Currently 1.75% of the loan amount, can be financed into the loan.
  • Annual MIP: Currently ranges from 0.15% to 0.75% of the loan amount, paid monthly.
FHA Loan Calculations
  1. The loan amount is the purchase price minus down payment.
  2. Upfront MIP is 1.75% of the loan amount.
  3. Annual MIP is a percentage of the loan amount, divided by 12 for monthly payments.
  4. The total monthly payment includes principal, interest, MIP, property taxes, and homeowner's insurance.
MIP Duration
  • For loans with an LTV ratio greater than 90%, MIP is required for the life of the loan.
  • For loans with an LTV ratio of 90% or less, MIP is required for 11 years.
  • Refinancing to a conventional loan can remove MIP once you reach 20% equity.
Monthly Principal & Interest Formula:
\( P = L \cdot \frac{c(1 + c)^n}{(1 + c)^n - 1} \)

Where:
\( P \) = Monthly Payment
\( L \) = Loan Amount
\( c \) = Monthly Interest Rate
\( n \) = Total Number of Payments

What Is the FHA Loan Calculator?

The FHA Loan Calculator is a practical home loan estimator that helps you calculate monthly payments, upfront costs, and loan details for mortgages backed by the Federal Housing Administration (FHA). It simplifies planning by providing a clear monthly mortgage breakdown that includes principal, interest, mortgage insurance premiums (MIP), property taxes, and home insurance.

Whether you're a first-time buyer or reviewing refinancing options, this FHA loan estimate tool can assist you in understanding the full picture of your monthly and total loan payments.

How to Use the FHA Loan Calculator

To get an accurate picture of your future mortgage obligations, follow these simple steps:

  • Enter the home purchase price.
  • Adjust the down payment in dollars or percentage.
  • Set the interest rate and loan term (in years).
  • Choose your credit score range to determine the minimum down payment.
  • Review optional fields like home insurance, HOA fees, and property tax.
  • Click "Calculate FHA Loan" to see your monthly payment and other loan information.

The tool also provides a detailed loan amortization schedule and breakdown of all monthly mortgage costs. You can choose to include taxes and insurance or view principal and interest only.

Key Benefits of Using This Tool

  • FHA Mortgage Breakdown: Understand how much you’re paying for each part of your loan.
  • Loan Affordability Guide: See how different down payments and interest rates affect your finances.
  • Payment Structure Insights: Get a complete monthly mortgage guide with all associated costs.
  • Amortization Schedule: Review how your balance, interest, and MIP change over time.
  • Refinance Comparison: Use the figures to compare FHA loans with refinancing options.

What’s Included in the FHA Monthly Mortgage Payment?

When you choose to include all expenses, your total monthly mortgage costs may include:

  • Principal & Interest
  • Monthly MIP (Mortgage Insurance Premium)
  • Property Taxes
  • Homeowners Insurance
  • HOA Fees (if applicable)

Why This Calculator Is Useful

This FHA affordability tool is especially helpful for those budgeting for a home. It acts as your personal mortgage payment guide and home financing planner, making it easy to compare loan scenarios and understand payment obligations before applying for a mortgage.

By showing both upfront costs (like MIP and down payment) and long-term payments, it helps you make informed decisions based on your financial situation and home buying goals.

Frequently Asked Questions

Who should use the FHA Loan Calculator?

Anyone considering an FHA-backed mortgage, especially first-time homebuyers who need a low down payment option or those comparing mortgage affordability.

What is MIP and why does it matter?

MIP stands for Mortgage Insurance Premium. FHA loans require both an upfront MIP and a monthly MIP to protect lenders. This calculator helps you account for those costs in your monthly mortgage planner.

Can I include property taxes and insurance?

Yes. You can toggle the option to include taxes and insurance, giving you a full view of your monthly mortgage details.

Is the amortization schedule necessary?

Not required, but it’s helpful. It shows how your payments are split between principal and interest over time—ideal for those tracking their loan payoff schedule.

Does this tool work for refinancing?

While primarily for FHA loans, it can support refinance cost analysis by showing how new rates and terms would affect your payments.

Can I change the decimal precision?

Yes. You can select how many decimal places you want in the results for more control over the mortgage cost analysis.

Helpful Tip

If you're unsure how much you can afford, consider pairing this with a house affordability calculator or borrowing capacity check to better understand your budget.