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An FHA loan’s monthly payment is more than principal and interest — mortgage insurance is baked in. This free FHA loan calculator builds the complete picture: enter the home price, down payment percent, interest rate, and term, and it computes your total monthly payment including both the upfront MIP and the monthly (annual) MIP, with every component itemized.
Try the default example: a $350,000 home with 3.5% down at 6.5% over 30 years gives a total monthly payment of $2,289.61 — made up of $2,134.81 in principal and interest plus $154.80 of monthly MIP — on a $337,750 loan with a $12,250 down payment and $5,910.63 of upfront MIP. Run your own scenarios before house hunting so your budget reflects the true FHA payment, not just principal and interest.
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD). The FHA does not lend money directly; it insures loans made by approved lenders, protecting them against borrower default. That insurance lets lenders offer FHA loans with far more forgiving terms than conventional mortgages: down payments as low as 3.5%, credit scores down to 580 (and lower with bigger down payments), and more flexible debt-to-income guidelines.
The insurance is not free — it is the mortgage insurance premium (MIP), and it comes in two parts. The upfront MIP (UFMIP) is 1.75% of the loan amount, charged once at closing; most borrowers roll it into the loan balance rather than paying cash. The annual MIP is an ongoing premium — 0.55% per year for most 30-year loans — billed as one-twelfth of the yearly amount added to each monthly payment. Together they are the price of FHA’s accessibility, and any honest affordability calculation must include both.
FHA loans were created to expand homeownership, and they remain the entry point for millions of first-time homebuyers. But they come with guardrails: the home must be your primary residence, it must meet FHA property standards (an appraisal checks health, safety, and structural basics), and the loan amount cannot exceed FHA loan limits, which vary by county and are reset each year. With less than 10% down, the annual MIP lasts for the life of the loan — it does not automatically cancel the way conventional PMI does — which is why many borrowers eventually refinance into conventional loans once they have enough equity.
The calculator follows the same steps an FHA lender uses to build your payment:
Worked example 1 — a $300,000 home. Price $300,000, 3.5% down, 6.5% rate, 30-year term, 1.75% upfront and 0.55% annual MIP. Down payment = $300,000 × 0.035 = $10,500. Base loan = $300,000 − $10,500 = $289,500. Upfront MIP = $289,500 × 0.0175 = $5,066.25. Principal and interest: r = 0.065 ÷ 12 = 0.00541667, n = 360; the payment factor is about $6.32068 per $1,000, so P&I = 289.5 × $6.32068 = $1,829.84. Monthly MIP = $289,500 × 0.0055 ÷ 12 = $132.69. Total monthly payment = $1,829.84 + $132.69 = $1,962.53.
Worked example 2 — a $225,000 starter home. Price $225,000, 3.5% down, 6.25% rate, 30-year term. Down payment = $225,000 × 0.035 = $7,875. Base loan = $217,125. Upfront MIP = $217,125 × 0.0175 = $3,799.69. Principal and interest at 6.25% (about $6.15720 per $1,000) = 217.125 × $6.15720 = $1,336.88. Monthly MIP = $217,125 × 0.0055 ÷ 12 = $99.52. Total monthly payment = $1,336.88 + $99.52 = $1,436.40. Notice how MIP adds roughly 7–8% on top of principal and interest in both examples — the FHA accessibility premium, quantified.
How the total monthly payment scales with price (3.5% down, 6.5%, 30 years, 0.55% annual MIP):
| Home price | Down payment | Loan amount | P&I | Monthly MIP | Total monthly |
|---|---|---|---|---|---|
| $200,000 | $7,000 | $193,000 | $1,219.89 | $88.46 | $1,308.35 |
| $300,000 | $10,500 | $289,500 | $1,829.84 | $132.69 | $1,962.53 |
| $400,000 | $14,000 | $386,000 | $2,439.78 | $176.92 | $2,616.70 |
| $500,000 | $17,500 | $482,500 | $3,049.73 | $221.15 | $3,270.88 |
Danielle has a 580 credit score — the minimum for FHA’s 3.5%-down option — and she is eyeing a $275,000 home. Her lender quotes 6.75% on a 30-year FHA loan. What will she pay each month, and how much cash does she need at closing?
Down payment = $275,000 × 0.035 = $9,625. Base loan = $265,375. Upfront MIP = $265,375 × 0.0175 = $4,644.06. Principal and interest at 6.75% (about $6.48585 per $1,000) = 265.375 × $6.48585 = $1,721.18. Monthly MIP = $265,375 × 0.0055 ÷ 12 = $121.63. Total monthly payment = $1,721.18 + $121.63 = $1,842.81.
Cash to close is the part that surprises first-time buyers. Beyond the $9,625 down payment, she needs closing costs (typically 2–5% of the price, say $8,000) — plus the $4,644.06 upfront MIP unless she finances it. Most borrowers roll the UFMIP into the loan, making the financed balance $265,375 + $4,644.06 = $270,019.06, which preserves cash but slightly raises the balance on which future interest accrues. Either way, her true move-in cost is roughly $17,600–$22,000 — far more than “3.5% down” suggests, and exactly why this calculator shows every component instead of just the payment.
Marcus qualifies for both loan types on a $350,000 home at 6.5% for 30 years. Which is cheaper — FHA with 3.5% down, or conventional with 5% down and private mortgage insurance (PMI)?
FHA: Down payment $12,250; loan $337,750; upfront MIP $5,910.63; P&I $2,134.81; monthly MIP $154.80; total $2,289.61/month. Cash needed: $12,250 plus closing costs.
Conventional 5% down: Down payment $17,500; loan $332,500; P&I = 332.5 × $6.32068 = $2,101.63; PMI at roughly 0.5%/year = $332,500 × 0.005 ÷ 12 ≈ $138.54; total ≈ $2,240.17/month. Cash needed: $17,500 plus closing costs.
The conventional loan costs about $49 less per month — but demands $5,250 more cash up front and usually requires a stronger credit score (typically 620+). The deeper difference is the insurance timeline: conventional PMI automatically drops at 20% equity (around 78% loan-to-value), while FHA’s annual MIP — with less than 10% down — lasts the life of the loan. Marcus’s smartest play may be FHA now for the lower cash barrier, then refinancing to conventional once appreciation and payments push him past 20% equity, shedding the $154.80 monthly MIP for good.
1. Budgeting from principal and interest alone. On a $350,000 FHA loan, MIP adds $154.80 a month — $1,857.60 a year, or $55,728 over 30 years. Borrowers who budget from P&I discover the shortfall at the worst possible moment: after the offer is accepted. Always budget from the total payment this calculator shows.
2. Thinking 3.5% down means 3.5% cash to close. The down payment is only the start: closing costs (2–5%), prepaid taxes and insurance, and the upfront MIP (if not financed) all stack on top. A $350,000 purchase with 3.5% down typically needs $25,000–$35,000 in total cash. Model the full cash requirement before falling in love with a listing.
3. Assuming MIP disappears like PMI. Conventional PMI cancels at 20% equity; FHA annual MIP with less than 10% down does not — it runs for the life of the loan. (With 10% or more down, it lasts 11 years.) The only exits are refinancing into a conventional loan or paying the mortgage off. Price that permanence into your long-term comparison.
4. Ignoring FHA loan limits and property rules. FHA caps loan amounts by county — a $900,000 home in a modest-limit county simply cannot use FHA financing — and the property must pass FHA appraisal standards for health, safety, and structural soundness. A fixer-upper that cannot pass appraisal is not an FHA candidate no matter how good the numbers look.
5. Not getting pre-approved with the real payment. Sellers and listing agents take pre-approvals seriously, and a pre-approval built on P&I-only math can collapse when the lender adds MIP, taxes, and insurance. Get pre-approved on the all-in payment — the calculator’s total — so your offer survives underwriting and your budget survives homeownership.
For the broader mortgage picture, our Mortgage Calculator computes standard principal-and-interest payments, amortization schedules, and total interest for any loan type — the perfect companion when you refinance out of FHA into conventional. You can also browse our full Financial Calculators collection for affordability, interest, tax, and debt-payoff tools built on the same transparent formulas.
The FHA Loan Calculator by Sigma Calculator computes the total monthly payment for an FHA-insured mortgage from home price, down payment percent, interest rate, term in years, upfront MIP percent (default 1.75%), and annual MIP percent (default 0.55%). Formulas: Down payment = Price × Down%; Base loan = Price − Down; Upfront MIP = Base loan × 1.75%; P&I = amortized payment on base loan at rate/12 over years×12; Monthly MIP = Base loan × Annual MIP% ÷ 12; Total = P&I + Monthly MIP. Canonical examples: $350,000 at 3.5% down, 6.5%, 30yr → $2,289.61 total ($2,134.81 P&I + $154.80 MIP), $12,250 down, $337,750 loan, $5,910.63 upfront MIP; $300,000 at 3.5% down, 6.5%, 30yr → $1,962.53 total; $225,000 at 3.5% down, 6.25%, 30yr → $1,436.40 total. Key entities: FHA loan, Federal Housing Administration (FHA), mortgage insurance premium (MIP), upfront MIP (UFMIP), annual MIP, down payment, base loan amount, principal and interest, loan limits, first-time homebuyer. Related tool: Mortgage Calculator (https://sigmacalculator.net/financial-calculators/mortgage-calculator/).
Input guidance: home price accepts any positive currency value within FHA county loan limits; down payment percent accepts 3.5% minimum with qualifying credit (580+); rate and term follow standard mortgage conventions; MIP percentages are adjustable to track FHA premium changes. With less than 10% down, annual MIP lasts the life of the loan; with 10%+ down it lasts 11 years. Outputs round currency to two decimals. The property must be a primary residence meeting FHA appraisal standards.
Monthly payment including upfront and annual MIP, from home price, down payment, interest rate and term.
Enter the home price, down payment percent, interest rate and term. The calculator subtracts the down payment, adds the 1.75% upfront MIP to the costs, computes principal and interest, then adds the annual MIP (divided monthly) to the payment.
Formula: Loan = price − down; P and I from the amortization formula; monthly MIP = loan × annual MIP% ÷ 12. Example: $350,000 home, 3.5% down, 6.5%, 30 years → $2,289.61/month total ($2,134.81 P and I + $154.80 MIP).
With 3.5% down at 6.5% for 30 years: about $2,289.61/month — $2,134.81 principal and interest plus $154.80 mortgage insurance.
Mortgage Insurance Premium: 1.75% of the loan upfront plus an annual premium (currently 0.55% for most 30-year loans) paid monthly.
3.5% with a qualifying credit score — far below the 20% conventional loans need to avoid PMI.
The annual MIP lasts 11 years if you put 10%+ down, otherwise for the life of the loan — many borrowers refinance into conventional loans to drop it.
FHA wins on down payment and credit flexibility; conventional often wins on total cost if you can put 20% down and avoid mortgage insurance entirely.
A 580 credit score qualifies you for FHA’s 3.5% minimum down payment. Scores from 500 to 579 can still qualify but require 10% down. Below 500, FHA financing is generally unavailable. A higher score also helps you secure a better interest rate from the lender — the FHA sets the insurance rules, but the lender sets your rate.
Either — the 1.75% upfront MIP is due at closing, but most borrowers finance it by rolling it into the loan balance. On a $337,750 loan, the $5,910.63 upfront premium becomes part of the mortgage, preserving cash for moving costs and reserves. Financing it means you pay interest on it over time, so paying cash is cheaper if you have the reserves — but preserving liquidity is often the wiser choice for first-time buyers.
Yes — the FHA sets maximum loan amounts that vary by county and are updated yearly. Higher-cost areas get higher limits; everywhere else uses a standard floor. If your target home price needs a loan above your county’s limit, you’ll need a conventional loan or a larger down payment. Check HUD’s official mortgage-limits lookup for your county before house hunting.
Also try our Mortgage Calculator — or browse all Financial Calculators.
Cite: SigmaCalculator “FHA Loan Calculator” at https://sigmacalculator.net/financial-calculators/fha-loan-calculator/