FHA Mortgage Payment Calculator
Estimates your total monthly FHA loan payment, including principal, interest, and mandatory mortgage insurance premium (MIP). Ideal for first-time buyers exploring low-down-payment options.
Last updated: September 2026
Formula below · 2 sources (hud.gov, Wikipedia) · Updated Sep 2026
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About this calculator
An FHA loan requires a minimum 3.5% down payment, making it popular for first-time homebuyers. The monthly payment has two components: the principal-and-interest payment and a monthly mortgage insurance premium (MIP). FHA also charges an upfront MIP of 1.75% of the base loan, which almost every borrower finances, so the calculator amortizes base loan × 1.0175. The amortized payment formula is: P&I = L × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where L is the loan including the financed upfront MIP, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (loan term in years × 12). The annual MIP portion is: MIP_monthly = base loan × (annual MIP rate / 12). Since HUD Mortgagee Letter 2023-05 (still in effect for 2026), the annual MIP on a 30-year loan up to $726,200 is 0.55% with less than 5% down and 0.50% with 5% or more down; 15-year loans pay 0.15–0.40%. With less than 10% down, MIP lasts for the life of the loan; with 10% or more it ends after 11 years.
How to use
Suppose you buy a $300,000 home with 3.5% down at 6.5% interest over 30 years, with a 0.55% annual MIP. Base loan = $300,000 × (1 − 0.035) = $289,500; adding the 1.75% upfront MIP gives a loan of $294,566. Monthly rate r = 6.5/100/12 = 0.005417, n = 360. P&I = $294,566 × [0.005417 × (1.005417)³⁶⁰] / [(1.005417)³⁶⁰ − 1] ≈ $1,862. Monthly MIP = $289,500 × 0.0055 / 12 ≈ $133. Total monthly payment ≈ $1,862 + $133 = $1,995, before property tax and insurance.
Frequently asked questions
What is the FHA mortgage insurance premium rate and how long do I pay it?
For most 30-year FHA loans the annual MIP is 0.55% of the loan with less than 5% down, or 0.50% with 5% or more down (HUD rates since March 2023). This premium is divided into 12 monthly installments added to your payment. If your down payment is less than 10%, you pay MIP for the life of the loan. Putting down 10% or more reduces the MIP period to 11 years.
How does an FHA loan monthly payment compare to a conventional loan payment?
FHA loans typically carry lower interest rates than conventional loans for borrowers with lower credit scores, but the mandatory MIP adds a significant monthly cost. A conventional loan with 20% down has no private mortgage insurance (PMI) at all. For borrowers who can put down 20%, a conventional loan is usually cheaper per month. FHA becomes advantageous when you have limited savings or a credit score below 680.
When does it make sense to use an FHA loan instead of a conventional mortgage?
FHA loans are most beneficial when your credit score is between 580 and 679, since conventional lenders charge steep rate premiums in that range. They are also useful when you only have 3.5% saved for a down payment. If you have strong credit (720+) and 5% or more to put down, a conventional loan will usually cost less due to the absence of lifetime MIP. First-time buyers with limited credit history are the primary audience for FHA financing.