FHA Loan Calculator

Monthly payment for an FHA loan, including upfront MIP financed into the loan and monthly MIP. Results update as you type.

Home price

Down payment (%)

Interest rate (annual %)

Loan term (years)

Upfront MIP (%)

Annual MIP (%)

Start date

Total monthly payment

$0.00

Cost breakdown

Amortization schedule

How this calculator works

Enter the home price and down payment percentage. The base loan is the price minus the down payment. Upfront MIP is added to the base loan, and the monthly payment is the principal and interest on that total loan plus one twelfth of the annual MIP.

Results are estimates for education only and are not financial advice.

How does FHA MIP work?

FHA charges an upfront MIP, usually 1.75% of the base loan, which is most often financed into the loan, plus an annual MIP charged monthly. With less than 10% down, annual MIP typically lasts for the life of the loan.

FHA loan payment formula

Base loan = home price × (1 − down payment %). Total loan = base loan × (1 + upfront MIP %). Monthly payment = P&I on the total loan + total loan × annual MIP % ÷ 12. P&I = P × r ÷ (1 − (1 + r)^(−n)), with r = annual rate ÷ 100 ÷ 12 and n = term in months.

How the calculation works, step by step

Multiply the home price by the down payment percentage to get the down payment, and subtract it from the price to get the base loan.
Add the upfront MIP, a percentage of the base loan, to the base loan to get the total loan amount.
Apply the amortization formula to the total loan, the monthly rate, and the term to get the principal and interest payment.
Add monthly MIP, which is the total loan times the annual MIP percentage divided by 12, to get the total monthly payment.

Worked example

A $400,000 home with 3.5% down gives a $14,000 down payment and a $386,000 base loan. Adding 1.75% upfront MIP ($6,755) gives a total loan of $392,755. At 7% over 30 years, principal and interest are $2,613.01 per month, plus 0.55% annual MIP of $180.01, for a total of $2,793.02 per month.

What credit score do I need for an FHA loan?

FHA loans are designed for borrowers with lower credit scores than conventional loans usually require. In general, a score of 580 or higher qualifies for the 3.5% minimum down payment, while scores from 500 to 579 usually require 10% down. Lenders may set their own minimums on top of these guidelines.

Can FHA MIP be removed later?

With less than 10% down, annual MIP usually lasts for the life of the loan and does not drop off automatically. The common way out is to refinance into a conventional loan once the home has at least 20% equity, which also removes the MIP requirement.