FHA Loan Calculator
Your full FHA payment — principal, interest, and both upfront and annual mortgage insurance premium.
Your loan
$12,250 down
Models UFMIP (1.75% upfront, financed into the loan) and annual MIP added on top of principal & interest.
Total Monthly Payment
$2,330/mo
= Principal & Interest + Annual MIP
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Last updated: August 6, 2026 · Reviewed by the DoCalc team
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to widen access to homeownership for borrowers who might not qualify for — or afford — a conventional loan's down payment and credit requirements. In exchange for that accessibility, FHA loans carry their own mortgage insurance structure, which is often less flexible and more persistent than conventional PMI. This calculator models both pieces of that insurance so you can see the real full monthly cost, not just principal and interest.
The Two Kinds of FHA Mortgage Insurance
Upfront MIP (UFMIP) is a one-time 1.75% charge on every FHA loan, almost always rolled into the loan balance rather than paid in cash. Annual MIP is an ongoing monthly premium — this calculator uses 0.55% for down payments under 5% and 0.50% for 5% and above, the two most common bands on a 30-year FHA loan. Unlike conventional PMI, annual MIP doesn't automatically cancel at 20% equity; below 10% down, it typically runs for the entire loan term.
Worked Example
A $350,000 home, 3.5% down ($12,250), financed at 6.5% over 30 years:
Total monthly payment comes to roughly $2,330 for principal, interest, and MIP combined — before adding property taxes and homeowners insurance, which this calculator doesn't include so the FHA-specific costs stay visible on their own.
FHA vs. Conventional: Quick Comparison
| Factor | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% | 3-5% (varies by program) |
| Minimum credit score | As low as 580 (500 with 10% down) | Typically 620+ |
| Mortgage insurance | UFMIP + annual MIP, often life of loan | PMI, cancels at 20-22% equity |
| Best for | Lower credit scores, smaller down payments | Stronger credit, wants insurance to eventually drop off |
Who Should Use This Calculator
Use it if you're specifically evaluating an FHA loan and want to see the real payment once both MIP charges are included, not just a generic mortgage estimate.
Compare against the standard Mortgage Payment Calculator with a conventional loan's PMI assumptions if you're deciding between FHA and conventional — the better option often comes down to your specific credit score and down payment size.
Common Mistakes to Avoid
The most common mistake is comparing an FHA rate to a conventional rate without accounting for MIP — FHA's advertised rate can look attractive while the all-in monthly cost, once MIP is added, ends up higher than a conventional loan with PMI. A second mistake is assuming MIP disappears at 20% equity the way conventional PMI does — on FHA loans with under 10% down, it typically doesn't, and refinancing is often the only way to remove it.
Worth knowing: FHA loan limits vary by county and are updated annually based on local median home prices — a home price that qualifies in one county may exceed the FHA limit in a higher-cost area.
Expert Recommendation
If your credit score is 680 or higher and you can put down at least 5%, run both this calculator and the standard Mortgage Payment Calculator with conventional PMI assumptions before committing — stronger-credit borrowers often find conventional financing cheaper overall despite FHA's lower headline down payment requirement.
Frequently Asked Questions
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to make homeownership accessible with a lower minimum down payment (3.5% for most borrowers) and more flexible credit requirements than many conventional loans.
What is UFMIP?
Upfront Mortgage Insurance Premium is a one-time charge of 1.75% of the base loan amount, paid on every FHA loan. It's typically rolled into the loan balance rather than paid in cash at closing.
What is annual MIP and how long does it last?
Annual MIP is an ongoing monthly premium, typically 0.50-0.55% of the loan balance per year depending on your down payment. Unlike conventional PMI, FHA's annual MIP often lasts for the life of the loan if your down payment was under 10% — it doesn't automatically cancel at 20% equity.
Can I remove FHA MIP?
If your down payment was 10% or more, MIP cancels automatically after 11 years. Below 10% down, MIP typically lasts for the full loan term — the main way to remove it is refinancing into a conventional loan once you have enough equity.
What credit score do I need for an FHA loan?
FHA guidelines allow scores as low as 580 for the 3.5% minimum down payment, and as low as 500 with a 10% down payment, though individual lenders often set higher minimums than FHA's floor.
Is an FHA loan cheaper than a conventional loan?
It depends on credit score and down payment. FHA MIP is often more expensive than conventional PMI for borrowers with strong credit, but FHA can be cheaper or more accessible for borrowers with lower credit scores or smaller down payments who wouldn't qualify for competitive conventional PMI rates.
Are there FHA loan limits?
Yes — FHA sets maximum loan amounts by county, tied to local median home prices, and updated annually. Check current limits for your specific county before assuming a home price qualifies.
Conclusion
An FHA loan's real cost lives in two places most calculators skip: the upfront premium quietly added to your balance, and the annual premium that may never cancel. Seeing both alongside principal and interest is the only way to fairly judge an FHA offer against a conventional one.