FHA Loan Calculator with MIP, Taxes, and Insurance

How to Use Our FHA Loan Calculator

Provide a few key details about your potential home purchase to see a detailed breakdown of your monthly FHA mortgage payment.

• Home Price: Enter the purchase price of the home you plan to buy.

• Down Payment: FHA loans allow for a down payment as low as 3.5% of the purchase price. You can enter a dollar amount or a percentage.

• Loan Term (Years): Choose the length of the loan. FHA loans are most commonly available in 30-year and 15-year terms.

• Interest Rate (%): Input the mortgage interest rate you expect to receive from a lender.

• Annual Property Tax: This varies by location. You can often find this on the real estate listing or estimate it as 1.1% of the home price for a starting point.

• Annual Homeowners Insurance: This is the cost to insure your property against damage. A common estimate is around $1,200 to $2,000 per year, but this can vary widely.

Note: Our calculator automatically calculates both the Upfront and monthly FHA Mortgage Insurance Premium (MIP) based on current FHA guidelines, which is a required cost for this loan type.

Understanding Your FHA Loan Payment Breakdown

The calculator provides your Total Estimated Monthly Payment. Unlike a simple interest calculator, this number includes all the parts of a typical mortgage payment, often referred to as “PITI,” plus the FHA-specific MIP.

(A pie chart visually breaking down the five components of the FHA payment would be placed here.)

Here’s what each part of your payment represents:

The Two Parts of FHA Mortgage Insurance (MIP)

MIP is mandatory on all FHA loans and is the key difference from a conventional loan.

1. Upfront Mortgage Insurance Premium (UFMIP): This is a one-time charge, currently set at 1.75% of your base loan amount. Most borrowers choose to roll this cost into their total mortgage balance rather than paying it out-of-pocket at closing.

2. Annual Mortgage Insurance Premium (Annual MIP): This is a recurring charge, calculated annually but paid in monthly installments as part of your mortgage payment. The rate depends on your loan amount, term, and down payment size, but for most borrowers taking out a 30-year loan today, it is 0.55% of the average loan balance per year.

Frequently Asked Questions About FHA Loans

What is an FHA loan and who is it for?

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). This government insurance protects lenders, allowing them to offer loans with more flexible qualifications. FHA loans are especially popular with:

• First-time homebuyers.

• Borrowers with lower credit scores (down to 580, or sometimes 500 with a larger down payment).

• Buyers with a smaller amount of cash saved for a down payment (as low as 3.5%).

What is FHA MIP and how is it different from PMI?

FHA MIP (Mortgage Insurance Premium) and Conventional PMI (Private Mortgage Insurance) both protect the lender, but they have key differences. MIP is required for FHA loans, while PMI is for conventional loans.

The biggest difference is the duration. On a conventional loan, PMI can be canceled once you reach 20% equity. With FHA MIP, it’s more complex.

• Example: On a $300,000 FHA loan, you’d have an upfront MIP of $5,250 ($300,000 x 1.75%) added to your loan. Your monthly MIP payment would be about $137 ($300,000 x 0.55% / 12).

Can I ever cancel FHA MIP?

This is a critical question with a specific answer. The ability to cancel your annual FHA MIP depends entirely on your original down payment.

• If your down payment is less than 10%: You will pay MIP for the entire life of the loan. The only way to remove it is to refinance the FHA loan into a different type of loan (like a conventional mortgage) once you have sufficient equity.

• If your down payment is 10% or more: You will pay MIP for the first 11 years of the loan, after which it will be automatically removed.

What are the FHA loan requirements for 2025?

To qualify for an FHA loan in 2025, you generally need to meet the following guidelines set by the FHA and enforced by lenders:

• Credit Score: A minimum score of 580 is typically required for a 3.5% down payment. Borrowers with scores between 500 and 579 may need to put down at least 10%.

• Down Payment: A minimum of 3.5% of the home’s purchase price.

• Debt-to-Income (DTI) Ratio: Generally, your housing costs should not exceed 31% of your gross monthly income, and your total debt (including the new mortgage) should not exceed 43%. Some lenders may allow higher ratios with compensating factors.

• Property Standards: The home must be appraised by an FHA-approved appraiser and meet minimum standards for health and safety.

FHA vs. Conventional Loan: Which is better?

Neither is universally “better”—the best choice depends on your financial profile.

Bottom Line: An FHA loan is often better if you have a lower credit score or limited down payment savings. A conventional loan is often preferable if you have a strong credit score and at least 5% down, as you can avoid the lifetime MIP.

Take the Next Step in Your Homebuying Journey

• Now that you have your estimated FHA payment, check if you meet the lender guidelines with our Debt-to-Income (DTI) Ratio Calculator.

• Wondering how this compares to a non-FHA loan? Run the numbers with our Conventional Mortgage Calculator to see the difference.

• If you already have an FHA loan, see if you can eliminate MIP by refinancing with our Mortgage Refinance Calculator.