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Mortgage & Loans
FHA Loan Calculator — Monthly Payment, UFMIP & MIP
See what an FHA-insured loan really costs once mortgage insurance is added in
An FHA loan is a mortgage insured by the Federal Housing Administration. It's the go-to option for first-time and lower-credit buyers because it allows a down payment as low as 3.5% of the home price (with a credit score of 580 or higher) and is more forgiving on debt-to-income ratios than a conventional loan. The trade-off is mortgage insurance — and FHA charges it twice.
First comes the Upfront Mortgage Insurance Premium (UFMIP), equal to 1.75% of your base loan amount. Almost every borrower rolls this into the loan instead of paying it in cash at closing, so it quietly grows the balance you actually finance. Second comes the annual Mortgage Insurance Premium (MIP) — for most 30-year FHA loans that's 0.55% of the loan, billed monthly. Unlike conventional PMI, FHA MIP usually can't be canceled by reaching 20% equity: if your down payment is under 10%, you pay MIP for the life of the loan; put down 10% or more and it drops off after 11 years.
Here's the math this tool runs. Say you buy a $300,000 home with the minimum 3.5% down ($10,500). Your base loan is $289,500. UFMIP = 1.75% × $289,500 = $5,066.25, which gets added on, so your total financed loan is $294,566.25. At a 6.5% rate over 30 years, the principal-and-interest payment is about $1,862. Annual MIP = 0.55% × $294,566 = $1,620, or about $135 a month. Add them up and your real monthly mortgage cost is roughly $1,997 — before property taxes and homeowners insurance.
The most common mistake is comparing an FHA quote to a conventional one using only the interest rate. FHA rates are often slightly lower, but once you stack the upfront 1.75% and the ongoing 0.55% MIP that never goes away, the all-in cost can exceed a conventional loan with cancelable PMI. Always compare total monthly payment and total cost over the years you'll keep the loan — not the headline rate.
This calculator gives you a clean estimate of every piece. Plug in your numbers below, then talk to a licensed lender for an official Loan Estimate.
📖 See also: FHA vs Conventional vs VA Loan: Which Fits?
Calculator
Fill in the fields and click "Calculate" for instant results.
📰 Formula
• Base loan = home price − down payment • UFMIP = 1.75% × base loan (usually financed into the loan) • Total loan = base loan + UFMIP • Monthly P&I = L × r × (1+r)^n ÷ ((1+r)^n − 1), where r = annual rate ÷ 12 and n = years × 12 • Annual MIP = 0.55% × total loan; Monthly MIP = annual MIP ÷ 12 • Total monthly = monthly P&I + monthly MIP
📰 Formula
• Base loan = home price − down payment • UFMIP = 1.75% × base loan (usually financed into the loan) • Total loan = base loan + UFMIP • Monthly P&I = L × r × (1+r)^n ÷ ((1+r)^n − 1), where r = annual rate ÷ 12 and n = years × 12 • Annual MIP = 0.55% × total loan; Monthly MIP = annual MIP ÷ 12 • Total monthly = monthly P&I + monthly MIP
🧪 Worked examples
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Example 4
⚠️ Common mistakes
- Comparing FHA to conventional by interest rate alone, ignoring UFMIP and lifetime MIP.
- Forgetting that UFMIP is added to the loan, so P&I is figured on the larger balance.
- Assuming FHA MIP cancels at 20% equity like conventional PMI — with under 10% down it lasts the life of the loan.
- Leaving out property taxes and homeowners insurance, which aren't in this estimate.
💡 Tips
- Put 10% or more down and FHA MIP drops off after 11 years instead of lasting forever.
- UFMIP can be paid in cash at closing to keep your financed balance — and your P&I — lower.
- Always compare the total monthly payment and multi-year cost, not just the headline rate.
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❓ Frequently asked questions
What is the minimum down payment on an FHA loan?
3.5% of the home price if your credit score is 580 or higher. Scores between 500 and 579 require 10% down. On a $300,000 home, 3.5% is $10,500.
What is UFMIP on an FHA loan?
UFMIP is the Upfront Mortgage Insurance Premium, equal to 1.75% of your base loan amount. Most borrowers finance it into the loan rather than paying it in cash at closing.
How much is the monthly MIP on an FHA loan?
For most 30-year FHA loans the annual MIP is 0.55% of the loan, billed monthly. On a ~$294,000 loan that's about $135 per month.
Does FHA mortgage insurance ever go away?
If your down payment is under 10%, MIP lasts the life of the loan. With 10% or more down, it cancels after 11 years. To fully remove it sooner, most people refinance into a conventional loan.
Is an FHA loan cheaper than a conventional loan?
Not always. FHA rates can be slightly lower, but the 1.75% upfront and 0.55% lifetime MIP often make the all-in cost higher than a conventional loan with cancelable PMI. Compare total cost, not just the rate.
Can I get an FHA loan with bad credit?
FHA allows scores as low as 500, but you'll need 10% down below 580. At 580 and up you qualify for the 3.5% minimum. Lenders may set their own higher minimums.
Does this FHA calculator include property taxes and insurance?
No. This estimate covers principal, interest and FHA mortgage insurance only. Your actual monthly payment will also include property taxes and homeowners insurance (escrow), and possibly HOA dues.
How is the FHA monthly payment calculated?
We find your base loan (price minus down payment), add 1.75% UFMIP, compute principal & interest on that total at your rate and term, then add monthly MIP (0.55% of the loan ÷ 12).
What's the difference between FHA, VA and conventional loans?
FHA is government-insured with low down payments and dual mortgage insurance. VA loans (for eligible veterans) need no down payment or monthly MI. Conventional loans use cancelable PMI that ends at 20% equity. This tool estimates FHA only.