FHA Loan Calculator
This calculator estimates your FHA monthly payment — principal, interest, upfront MIP rolled into the loan, and the monthly MIP that keeps running afterward — so you can see the real cost of the low down payment, not just the sticker-price payment.
For personal planning only — not financial advice.
Reviewed by CalculatorDrive Finance Editorial Board · Last updated
Loan Details
Enter your home price and down payment to see your estimated FHA mortgage payments, including Upfront and Annual MIP.
Total Monthly Payment
Includes P&I, MIP, Taxes & Insurance
Total Interest
$0
Total MIP
$0
Total Cost
$0
Down Payment
$0
Monthly Payment Breakdown
Total Cost Over Loan Life
Monthly Costs
MIP Duration
For the life of the loan
Complete FHA Loan Guide
The short answer
On a $350,000 home at 3.5% down and 6.5%, the FHA loan comes to $343,660.62 (base loan plus upfront MIP), a $2,172.17 monthly principal-and-interest payment, and $154.80 a month in MIP — which, because MIP runs for the life of the loan below 10% down, adds up to $55,728.75 in MIP alone over 30 years. Put 10% down instead and MIP drops to $131.25 a month for just 11 years, totaling $17,325 — a difference of over $38,000.
Key takeaways
- 3.5% down on a $350,000 home is $343,660.62 financed after rolling in the $5,910.63 upfront MIP, at $2,172.17/month principal and interest.
- Below 10% down, annual MIP (0.55% here, $154.80/month) runs for the entire loan term — no automatic cancellation.
- At 10% down or more, MIP drops to roughly 0.50% and cancels after 11 years, cutting total MIP paid from $55,728.75 to about $17,325.
- Upfront MIP (1.75% of the base loan) is financed into the loan by default, so it's paid down — and earns interest against you — over the full term.
What is an FHA Loan?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. It makes efficient homeownership possible for borrowers with lower credit scores or smaller down payments.
3.5% vs 10% down: the real MIP cost difference
The down payment doesn't just change your loan size — it changes how long MIP sticks around. On a $350,000 home at 6.5% for 30 years:
| 3.5% Down | 10% Down | |
|---|---|---|
| Upfront MIP | $5,910.63 | $5,512.50 |
| Monthly MIP | $154.80 | $131.25 |
| MIP Duration | Life of loan (360 mo.) | 11 years (132 mo.) |
| Total MIP Paid | $55,728.75 | $17,325.00 |
The gap isn't from the rate alone — 0.55% versus 0.50% is a small difference. It's the duration: below 10% down, MIP is baked in for all 30 years; at 10% or above, it's scheduled to end after 11 years regardless of how the loan balance moves. That single threshold is worth checking before finalizing a down payment amount.
Annual MIP Rates (2024)
Your annual mortgage insurance premium depends on your loan term and loan-to-value (LTV) ratio.
| Term > 15 Years | LTV Ratio | Annual Rate | Duration |
|---|---|---|---|
| Most Common | > 95% (e.g. 3.5% down) | 0.55% | Life of Loan |
| High Down Payment | ≤ 90% (e.g. 10% down) | 0.50% | 11 Years |
| 15-Year Fixed | < 90% | 0.15% | 11 Years |
FHA Calculation Formulas
Upfront MIP Formula
Example: $350,000 × 0.0175 = $6,125
Monthly MIP Formula
Example: ($356,125 × 0.55%) ÷ 12 = $163
FHA Borrower Requirements
Typical FHA Closing Costs
Expect to pay between 2% and 5% of the loan amount in closing costs. Common fees include:
- FHA Appraisal Fee ($400-$700)
- Lender Origination Fee (0.5-1%)
- Title Insurance & Search
- Prepaid Property Taxes
Common questions
What is an FHA loan?
FHA loans are mortgages insured by the Federal Housing Administration, designed to help borrowers with lower down payments and more flexible credit requirements. The insurance protects lenders against losses, which is why FHA loans are widely available.
What is FHA Mortgage Insurance Premium (MIP)?
FHA loans require MIP — an upfront premium at closing and an annual premium paid monthly. MIP protects the lender and is a significant cost beyond principal and interest. On loans with less than 10% down, annual MIP often lasts for the life of the loan.
What is the minimum FHA down payment?
Borrowers with a credit score of 580 or higher can qualify for as little as 3.5% down. Scores between 500 and 579 typically require 10% down. Individual lenders may set overlays above FHA minimums.
How does FHA MIP differ from conventional PMI?
Conventional PMI can usually be removed once you reach 20% equity. FHA MIP removal rules depend on your down payment and loan origination date — many borrowers pay MIP for the entire loan term. Check current HUD guidelines for your situation.
Is an FHA loan right for every homebuyer?
FHA loans suit buyers with limited down payment savings, but MIP adds ongoing cost. Borrowers with strong credit and 20% down may find conventional loans cheaper over time. This is educational information — not lending advice.
How do I use this FHA loan calculator?
Enter home price, down payment percentage, interest rate, and loan term. Expand Taxes & Insurance to add property tax, homeowners insurance, and HOA fees. Click Calculate to see principal, interest, upfront and monthly MIP, and your total payment.
About this page
- Last reviewed:
- Written by:
- CalculatorDrive editorial team
- Reviewed by:
- CalculatorDrive finance editorial board
- How we build financial content:
- FHA payment estimates include MIP concepts per HUD Handbook 4000.1 and CFPB FHA loan shopping guidance.
About CalculatorDrive FHA loan limits, MIP rates, and underwriting overlays vary by county and lender. Confirm eligibility with an FHA-approved lender.