FHA Loan Calculator
Work out the full monthly cost of an FHA-backed mortgage — including the 1.75% upfront MIP and the monthly MIP that every FHA loan carries.
Total monthly payment
£2,326.97
- Principal & interest
- £2,172.17
- Monthly MIP
- £154.80
- Upfront MIP (financed)
- £5,910.63
- Base loan amount
- £337,750.00
- Loan-to-value (LTV)
- 96.5%
- Total cost over term
- £849,959.56
FHA loans require a 1.75% upfront mortgage insurance premium (UFMIP) — usually financed into the loan — plus annual MIP paid in monthly instalments. The annual MIP rate depends on your loan-to-value (LTV) ratio and term: most 30-year FHA buyers with a 3.5% down payment pay 0.55% per year. Property taxes, homeowners insurance and HOA dues are extra.
How to use this calculator
Enter the home price, your down payment as a percentage (FHA allows as little as 3.5% with a credit score of 580 or above), the fixed annual interest rate (APR) your lender quoted, and the loan term in years (FHA offers 15-, 20-, 25- and 30-year terms). The calculator returns your total monthly payment, the principal-and-interest portion, the monthly MIP, the financed 1.75% upfront MIP, your loan-to-value ratio and the total cost of the loan over its full term.
How the calculation works
Two charges sit on top of a normal mortgage payment. First, the upfront MIP (UFMIP) is 1.75% of the base loan amount and is almost always rolled into the loan, so you finance it over the full term. Second, annual MIP is paid monthly: the rate depends on your LTV and term. For loans up to $726,200 on a term over 15 years, annual MIP is 0.50% when LTV is 95% or below and 0.55% above that. Principal and interest use the standard amortisation formula P = L × r / (1 − (1+r)^−n), applied to the total loan (base loan + UFMIP). Your total monthly cost is principal + interest + monthly MIP — taxes, homeowners insurance and HOA fees are extra.
Worked example
Buy a $350,000 home with 3.5% down at 6.5% APR over 30 years. Down payment = $12,250. Base loan = $337,750. UFMIP = 1.75% × $337,750 ≈ $5,911, financed into the loan. Total loan = $343,661. Monthly P&I on $343,661 at 6.5% for 360 months ≈ $2,172. LTV = 96.5% so annual MIP = 0.55%, monthly MIP = $337,750 × 0.0055 ÷ 12 ≈ $155. Total monthly payment ≈ $2,327 before taxes and insurance.
Frequently asked questions
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a US government agency. Because the FHA insures the lender against borrower default, lenders can offer FHA loans with lower down payments (as low as 3.5%) and looser credit requirements (minimum FICO 580 for 3.5% down, or 500–579 for 10% down) than a conventional mortgage. In return, every FHA borrower pays mortgage insurance: a 1.75% upfront premium (UFMIP) financed into the loan, plus an annual MIP paid monthly for most of the loan’s life.
How much is FHA mortgage insurance?
The upfront MIP is 1.75% of the base loan amount. Annual MIP rates were set by HUD Mortgagee Letter 2023-05, effective March 20, 2023. For base loans up to $726,200 on a term longer than 15 years, the annual MIP is 0.50% when LTV is 95% or below and 0.55% when LTV is above 95% (which is the case for most 3.5%-down buyers). On a 15-year or shorter term, annual MIP is 0.15% at 90% LTV or below and 0.40% above. Higher base loan amounts and lower credit profiles carry slightly different rates — always confirm with your lender.
How long do I pay FHA mortgage insurance?
For FHA loans originated after June 3, 2013 with an LTV above 90% at origination, annual MIP is paid for the full loan term. For loans with an LTV of 90% or below at origination, annual MIP drops off after 11 years. Because most FHA buyers put just 3.5% down (LTV 96.5%), they pay MIP for the entire 30 years unless they refinance into a conventional loan once they have 20% equity.
FHA loan vs conventional — which is better?
FHA is usually better if your credit score is below 680 or your down payment is below 5%: the looser underwriting and lower required down payment unlock home-ownership earlier, and the rate is often competitive. Conventional is usually better with a 720+ score and 10–20% down, because you can drop private mortgage insurance (PMI) once you hit 80% LTV and avoid the upfront premium entirely. Run the numbers both ways — the FHA’s 1.75% upfront cost plus lifetime annual MIP can outweigh its initial advantages over a long hold.
What are the FHA loan limits?
FHA loan limits are set annually by HUD per county. For 2026, the FHA "floor" for low-cost areas is $498,257 for a single-family home and the "ceiling" for high-cost areas is $1,149,825. Some counties (Alaska, Hawaii, Guam, US Virgin Islands) have higher special-area limits. You can look up the exact limit for your county on HUD’s FHA Mortgage Limits search tool. Loan amounts above these limits do not qualify for FHA insurance and must be financed as conventional or jumbo loans.
Does this calculator include property tax, insurance and HOA?
No — the figure shown is principal + interest + monthly MIP only. Property taxes vary 0.3%–2.5% of home value annually depending on state and county; homeowners insurance typically runs $100–$250 a month; HOA dues, where applicable, range from $25 to $500+ a month. To get a true PITI payment (principal, interest, taxes, insurance) add an escrow estimate for those line items separately.