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- An FHA loan is a government-insured mortgage that generally allows as little as 3.5% down with a credit score of 580 or higher.
- You pay an upfront mortgage insurance premium, usually 1.75% of the loan, and a yearly premium paid monthly.
- Your monthly payment is principal and interest, mortgage insurance, property tax, homeowners insurance and any HOA dues.
- This calculator shows each part and the cash you need at closing.
How to use the FHA loan calculator
Enter the price and down payment
Type the home price and your down payment as a percentage. The default is 3.5%.
Set the rate and term
Enter the interest rate from your lender quote and choose 15, 20, 25 or 30 years.
Add taxes and insurance
Enter your local property tax rate and yearly homeowners insurance.
Check the mortgage insurance
Open the advanced options to change the upfront and annual premium rates, or to pay the upfront premium in cash.
To compare with a regular loan, use the Mortgage Calculator. To see how much house your income supports, try the Home Affordability Calculator.
How an FHA payment is calculated
The loan amount starts with the price minus your down payment. The upfront premium is a percentage of that base amount and is usually added to the loan. The monthly principal and interest is then found with the standard amortization formula. The annual premium is charged on top, paid in twelve parts.
FHA payment formula
Base loan = price − down payment
Upfront premium = base loan × upfront rate (financed, so loan = base loan + premium)
Principal and interest = loan × i ÷ (1 − (1 + i)−n), with i the monthly rate and n the months
Monthly mortgage insurance = base loan × annual rate ÷ 12
Total payment = principal and interest + mortgage insurance + property tax + home insurance + HOA
The calculator estimates mortgage insurance on the base loan. Lenders use the average balance for the year, so your real figure may be slightly lower.
FHA loan examples
Example 1: the minimum down payment
A $350,000 home with 3.5% down, a 6.5% rate, 30 years, 1.1% property tax, $1,500 yearly insurance, a 0.55% annual premium and a 1.75% upfront premium added to the loan.
Over 30 years you would pay about $438,320 in interest on this loan.
Example 2: 5% down
The same home and terms with 5% down instead of 3.5%.
An extra $5,250 up front lowers the payment by about $36 a month.
Example 3: paying the upfront premium in cash
The first example, but you pay the $5,910.63 upfront premium at closing instead of adding it to the loan.
The payment is about $37 lower, but you need $5,910.63 more cash on closing day.
How rate and down payment change the payment
Interest rate comparison
Same $350,000 home, 3.5% down, 30 years, all other settings unchanged.
Two points of rate move the payment by about $452 a month.
Down payment comparison
Same $350,000 home at 6.5% for 30 years.
A bigger down payment lowers both the loan and the mortgage insurance.
Where an FHA loan calculator helps
First-time buyers
See the real monthly cost, including mortgage insurance, before you make an offer.
Low down payment planning
Compare 3.5%, 5% and 10% down against the cash you have saved.
Comparing loan types
Set an FHA payment next to a conventional or VA loan on the same home.
Budgeting for closing
Find out whether to add the upfront premium to the loan or pay it in cash.
FHA loans generally allow 3.5% down with a credit score of 580 or higher, and a larger down payment is required for lower scores. Mortgage insurance can last 11 years or the life of the loan, depending on your down payment and term. Rates, premiums and loan limits are set by HUD and lenders and can change, so confirm them with your lender. This calculator gives an estimate and is not financial advice.
FHA loan calculator FAQ
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration and made by an approved lender. It is designed to help buyers with smaller down payments or lower credit scores qualify.
How much is the down payment on an FHA loan?
It is generally 3.5% of the price for buyers with a credit score of 580 or higher. A higher down payment is generally needed for lower scores. You can use a larger down payment to lower the loan and the premium.
What is the FHA mortgage insurance premium?
There are two parts. The upfront premium is usually 1.75% of the base loan and is often added to the loan. The annual premium is a percentage of the loan, commonly around 0.55% for a typical 30-year loan, paid monthly.
How long do I pay FHA mortgage insurance?
It depends on your down payment and term. With a down payment of 10% or more it can end after 11 years. With less, it generally lasts for the life of the loan. Refinancing into a conventional loan is one way people remove it.
Is an FHA loan cheaper than a conventional loan?
Not always. FHA loans can have easier approval and lower rates, but mortgage insurance adds to the payment. Compare both on the same home using this calculator and the Mortgage Calculator.
Can I use an FHA loan for any home?
No. The home generally must be your primary residence, must meet FHA property standards and must be within the loan limit for your area. Your lender can confirm these details.