FHA Loan Calculator
Estimate your FHA-insured mortgage payment, including the Upfront and Annual Mortgage Insurance Premium (MIP) FHA loans require in place of conventional PMI.
Calculator verified • Last updated: August 2026
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Amortization Schedule
| Period | Payment | Principal | Interest | Balance |
|---|
Balance Over Time
Your fixed monthly payment stays the same for the life of the loan, but it covers mostly interest at first, when the balance is largest — as the balance shrinks, less of each payment is needed for interest, so principal gets paid down faster in the later years.
Compare to Conventional Loan (with PMI)
| Loan Type | Monthly P&I | Monthly MIP/PMI | Total Monthly |
|---|---|---|---|
| FHA | — | — | — |
| Conventional | — | — | — |
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How FHA Loan Payments Are Calculated
An FHA loan is a standard fixed-rate amortized loan, but it always carries mortgage insurance in two separate pieces — an Upfront MIP added to the loan balance and financed over the life of the loan, and an Annual MIP charged monthly. The monthly principal and interest still come from the same amortization formula every fixed-rate loan uses:
M: the monthly principal & interest payment.
P: the financed loan amount — base loan plus the Upfront MIP added to it.
r: the monthly interest rate (the annual rate divided by 12).
n: the number of monthly payments (loan term in years × 12).
Upfront MIP Is Usually Financed, Not Paid in Cash
The Upfront MIP is 1.75% of your base loan amount (home price minus down payment). Almost every FHA borrower rolls this cost into the loan itself rather than paying it at closing, which is exactly what this calculator does — the Upfront MIP is added to the base loan before the monthly payment is computed, so you also pay interest on it over the full term.
Annual MIP Never Goes Away on Most FHA Loans
Unlike conventional PMI, which typically cancels once you reach 20% equity, Annual MIP on most FHA loans with less than 10% down stays for the life of the loan. This calculator applies an Annual MIP rate of about 0.55% of the financed loan amount, divided by 12, added to your monthly payment — the same mechanic mortgage-calculator.html uses for conventional PMI, just relabeled and at FHA's own rate.
Worked Example
A 300,000-dollar home with a 10,500-dollar down payment (3.5%) financed at 6.5% for 30 years: the base loan is 289,500 dollars, the Upfront MIP is 289,500 times 1.75%, or about 5,066 dollars, bringing the financed loan to roughly 294,566 dollars. At a monthly rate of 6.5% ÷ 12 and n = 360 payments, the monthly P&I comes out to about 1,861 dollars, plus an Annual MIP of 294,566 times 0.55% ÷ 12, or about 135 dollars a month — a total monthly payment near 1,996 dollars.
FHA Loan Terms You Should Know
MIP (Mortgage Insurance Premium) — the FHA's required insurance charge, split into an Upfront portion (financed once) and an Annual portion (charged monthly). These illustrative HUD-style rates (1.75% upfront, about 0.55% annual) vary in practice by loan-to-value ratio and loan term — check current HUD guidance for your exact rate.
Base Loan Amount — the home price minus your down payment, before the Upfront MIP is added.
Loan-to-Value Ratio (LTV) — your loan amount divided by the home's value, the main factor lenders use to set your exact Annual MIP rate.
This calculator provides an estimate for planning purposes only, not a loan offer or financial advice. MIP rates shown are illustrative and vary by loan-to-value ratio, loan term, and current HUD guidelines — confirm exact figures with an FHA-approved lender.
Frequently Asked Questions
What is MIP and how is it different from PMI?
Mortgage Insurance Premium (MIP) is the FHA equivalent of the Private Mortgage Insurance (PMI) required on conventional loans. FHA loans charge two separate MIP costs — an Upfront MIP paid once (typically financed into the loan) and an Annual MIP paid monthly — while conventional PMI is only a monthly charge and can usually be removed once you reach 20% equity.
Can I avoid paying the Upfront MIP in cash?
Yes — almost all FHA borrowers finance the Upfront MIP into the loan amount rather than paying it at closing, which is what this calculator assumes. That does mean interest accrues on the Upfront MIP amount for the life of the loan.
What is the minimum down payment for an FHA loan?
3.5% of the home price, provided your credit score meets the lender's threshold (commonly 580). Borrowers with lower credit scores may need at least 10% down. This calculator flags a down payment below 3.5% as below the typical FHA minimum.