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What an FHA loan calculator should tell you
An FHA loan is a mortgage insured by the Federal Housing Administration and issued by a private lender. The insurance protects the lender, not you, and you pay for it. That is why a plain payment calculator misleads FHA buyers: it leaves out the two premiums that make up the biggest difference between FHA and other loans. This page adds both, then tells you the number you care about, which is what leaves your bank account each month.
How this calculator works
Enter the price and down payment, and the calculator finds your base loan and loan-to-value ratio (LTV). It then picks the annual premium rate from HUD's schedule using your term, base loan size and LTV. The upfront premium is 1.75% of the base loan, either added to the balance or paid at closing. The result panel lists principal and interest, tax, insurance and MIP as separate lines, then tells you how many years the annual premium will last.
How FHA MIP is calculated
For a term over 15 years and a base loan at or under the threshold, the annual rate is 0.50% when LTV is 95% or less and 0.55% above 95%. Shorter 15-year terms are far cheaper, at 0.15% for LTV up to 90% and 0.40% above it. Loans above the threshold pay more. Monthly MIP is base loan × annual rate ÷ 12.
Worked example: $300,000 house, 3.5% down
The base loan is $289,500. Upfront MIP of $5,066 is financed, so you borrow $294,566. At 6.5% for 30 years, principal and interest is $1,861.86. With LTV at 96.5%, the annual rate is 0.55%, which is $132.69 a month. Add $275 of property tax and $150 of insurance and the payment is $2,419.55.
Change the down payment to 10% on a $400,000 house and the annual rate falls to 0.50% and stops after 11 years. That difference in duration is often worth more than the difference in rate.
More to know before you choose FHA
The house has to pass an FHA appraisal
FHA appraisers check condition as well as value. Peeling paint on an older home, a failing roof or missing handrails can stall a deal until repairs are made, so ask your agent how the property looks against FHA standards early.
Sellers can help with closing costs
FHA allows sellers to contribute up to 6% of the price toward your closing costs. In a slow market that can cover most of your cash to close, which changes how much down payment you really need to save.
Compare it against other paths
If you have a stronger credit profile, put 5% down on a conventional loan on the main mortgage calculator and compare the monthly totals. If you served in the military, the VA loan calculator carries no monthly mortgage insurance. For a rural or suburban property, look at the USDA calculator. When your payment is settled, see what an extra $100 a month does on the payoff calculator.
Estimate only. MIP here is calculated on the original base loan; FHA recalculates it each year on the declining balance, so real annual premiums fall slightly over time.
Frequently asked questions
How much does FHA mortgage insurance cost?
Two charges apply. The upfront premium is 1.75% of the base loan, and most borrowers roll it into the loan. The annual premium ranges from 0.15% to 0.75% of the loan depending on term, loan size and down payment, and it is billed monthly. A 30-year loan with 3.5% down usually carries 0.55% a year; with 5% or more down it is typically 0.50%.
How long do I pay FHA mortgage insurance?
It depends on your down payment at closing. Put down 10% or more and the annual premium generally ends after 11 years. Put down less than 10% and it lasts for the full loan term, unless you refinance into a different loan or sell the home.
What is the minimum down payment and credit score for an FHA loan?
The standard minimum is 3.5% down with a credit score of 580 or higher. Scores from 500 to 579 generally require 10% down. Individual lenders often set stricter minimums than FHA does, so shop more than one.
Is there a limit on how much I can borrow with an FHA loan?
Yes, and it depends on the county. For 2026 the floor for a one-unit home is $541,287 and the ceiling in high-cost areas is $1,249,125. Look up your county before you fall in love with a house near the top of your budget.
Should I finance the upfront premium or pay it at closing?
Financing keeps your cash available but you pay interest on it for the life of the loan. On a $300,000 house with 3.5% down, the upfront premium is about $5,066. Tick or untick the box above to see how much the monthly payment moves.
Can I get rid of FHA mortgage insurance later?
For most loans the practical route is refinancing into a conventional mortgage once you have roughly 20% equity, at which point conventional PMI is no longer required. Compare the closing costs of the refinance to the insurance you would save before you commit.