FHA loan calculator

How to calculate your FHA mortgage payment

An FHA payment estimate combines the loan’s principal and interest, mortgage insurance, and the other monthly costs of owning the property. Work through each part separately so you can see how the home price, down payment, and financing choices affect your budget. This calculator assumes a fixed interest rate and monthly payments.

1. Find the base loan amount

Subtract your cash down payment from the purchase price. For a $400,000 home with $20,000 down, the base loan is $380,000. This is the starting balance before any financed upfront mortgage insurance. Your lender should confirm the required down payment, applicable loan limit, and eligibility for the property and loan you are considering. The calculator does not perform those checks.

2. Account for upfront mortgage insurance

FHA mortgage insurance includes an upfront premium and an ongoing premium. The upfront premium can be paid at closing or rolled into the mortgage; financing it increases the balance on which you pay interest. See the CFPB explanation of FHA mortgage insurance.

This tool assumes the upfront mortgage insurance premium (MIP) you enter is financed. Multiply the base loan by the quoted upfront percentage, then add that premium to the base loan. If your lender quotes 1.75%, for example, $380,000 × 1.75% is $6,650, producing a financed balance of $386,650. These percentages are illustrative inputs, not a statement of the premium applicable to your loan. Both MIP fields initially show zero as placeholders: replace them with your lender’s verified rates. If you pay the upfront premium in cash, enter zero in the financed upfront MIP field and budget for that cash payment separately.

3. Calculate principal and interest

Use the financed balance, quoted annual interest rate, and loan term to calculate the monthly loan payment. Enter the interest rate rather than APR: APR also reflects certain borrowing costs and is used to compare offers. For a fixed-rate loan, the payment formula is:

L is the financed loan balance, r is the annual interest rate divided by 100 and then by 12, and n is the number of years multiplied by 12. At zero interest, divide the balance by n. In the example above, a $386,650 balance at an illustrative 6.5% fixed rate over 30 years produces approximately $2,443.89 in monthly principal and interest.

4. Add the monthly mortgage insurance estimate

Enter the annual MIP rate quoted for your loan. This calculator estimates the initial monthly premium as the original base loan multiplied by that annual percentage, divided by 12. With an illustrative 0.55% annual rate, $380,000 × 0.55% ÷ 12 is about $174.17 per month. This simplified calculation is not a full FHA insurance schedule: actual premiums and how long they remain payable depend on the applicable program rules and loan details. Do not assume FHA MIP follows conventional PMI cancellation rules.

5. Include taxes, insurance, and HOA fees

Add property taxes, homeowners insurance, and any homeowners association fees in the monthly costs field. Divide annual bills by 12 before entering them. If these expenses total $550 per month, the example’s estimated initial housing payment is $2,443.89 + $174.17 + $550, or about $3,168.06. The calculator uses unrounded amounts internally, so totals can differ slightly from sums of rounded figures.

These expenses may rise even when the interest rate is fixed. Budget separately for utilities, maintenance, repairs, closing costs, and savings; the monthly estimate does not automatically include them.

6. Compare the estimate with your lender’s quote

Check the financed balance, interest rate, premium rates, and estimated escrow costs against your Loan Estimate. Ask the lender about any differences. Review the CFPB’s FHA loan overview for program context and compare actual offers, including their upfront costs. To see whether the estimated payment fits your income and debts, try the home affordability calculator. Neither estimate is a loan approval or a guaranteed payment quote.

FHA loan requirements and benefits

An FHA loan is a mortgage made by a private lender and insured by the Federal Housing Administration. FHA insurance can help borrowers access financing with a smaller down payment or a less established credit history. It protects the lender against certain losses; it does not remove your obligation to repay the loan.

Down payment and credit

FHA purchase loans can allow a down payment as low as 3.5% for qualifying borrowers. On a $300,000 purchase, that is $10,500 before closing costs and other upfront expenses. The amount you need depends on your credit profile and the applicable loan requirements. FHA can accommodate lower credit scores than many conventional products, but meeting a program minimum does not guarantee that a particular lender will approve your application. See the CFPB’s FHA loan overview and ask lenders which requirements apply to your situation.

Income, debts, and available funds

The lender evaluates whether your documented income can support the proposed housing payment and your other debts. Expect to provide income records, information about existing obligations, and evidence of the funds you plan to use at closing. Debt-to-income ratio is part of this review, rather than a stand-alone promise of eligibility. Documentation and underwriting requirements depend on your circumstances.

Before applying, compare the proposed payment with your take-home pay, everyday spending, and savings goals. Our home affordability calculator can help you explore a budget, but its adjustable income ratios are planning assumptions rather than FHA approval rules.

The home and loan amount must qualify

For a standard FHA home purchase, plan to use the property as your principal residence. The home must meet the applicable property and appraisal requirements. An appraisal supports the lender’s valuation and property review; arrange a separate home inspection to understand the condition of the home you are buying.

FHA loan limits vary by location and property size and are updated periodically. Check the limit for the county and number of units you are considering rather than assuming the calculator’s result is an eligible loan amount. Ask your lender to verify the current rules in HUD’s Single Family Housing Policy Handbook. This tool does not check occupancy, property eligibility, credit, or loan limits.

Benefits to weigh against the costs

A smaller down payment can reduce the time needed to save for a purchase, while more flexible credit requirements may broaden your financing options. Those benefits are most useful when the full payment still leaves room for repairs, emergencies, and other priorities. Compare written offers rather than assuming an FHA loan will always have the lowest overall cost.

FHA mortgage insurance includes upfront and ongoing premiums. Financing the upfront premium increases your loan balance and interest costs. Include the ongoing premium when comparing monthly payments, and ask how long it will remain payable. FHA mortgage insurance does not follow the same cancellation rules as conventional private mortgage insurance. The CFPB explains these differences in its mortgage insurance guide.

Compare complete loan offers

Request FHA and conventional Loan Estimates using the same purchase price and comparable terms. Review the interest rate, APR, monthly payment, cash needed at closing, and mortgage insurance costs together. Enter the lender-verified premium rates in this FHA calculator—the zero starting values are placeholders, not a premium quote. Use the result to compare scenarios, then confirm the final figures and eligibility with the lender before making a borrowing decision.