FHA Loan Calculator

FHA loans, backed by the Federal Housing Administration, require only 3.5% down for borrowers with credit scores of 580+. However, they include Mortgage Insurance Premiums (MIP) — both an upfront and annual premium. This calculator shows your true monthly cost including the mandatory MIP insurance.

How to Use This Tool

Enter the home price you are purchasing.
Enter your down payment percentage (3.5% minimum for credit score 580+).
Enter the FHA loan interest rate offered by your lender.
Enter the loan term (typically 30 years).
Enter the annual MIP rate (typically 0.55% for most loans).
Click Calculate to see your total monthly FHA payment including insurance.

The Formula

FHA monthly payment = principal+interest + monthly MIP. MIP = Loan Amount x Annual MIP Rate / 12. The base loan payment uses the amortization formula: M = P x [r(1+r)^n] / [(1+r)^n - 1].

Why It Matters

As a first-time buyer with $8,750 saved (3.5% of a $250,000 home), an FHA loan lets you qualify with a 580 credit score. Your $152,250 FHA loan at 6.5% includes $110/month MIP insurance. Compare this against a conventional loan requiring $25,000 down (20%) to avoid PMI.