About the FHA Loan Calculator
FHA loans are US mortgages insured by the Federal Housing Administration, designed to help buyers with smaller down payments and lower credit scores. The minimum down payment is 3.5 percent with a credit score of 580 or more. In return, you pay mortgage insurance premiums: an upfront premium, usually 1.75 percent of the loan, which is normally added to the loan balance, and a yearly premium spread over your monthly payments. This calculator adds those to the principal and interest, then adds property tax and home insurance to give a realistic monthly payment. It also warns if your down payment is below 3.5 percent.
Updated October 2026
How to use the FHA Loan Calculator
- 1Enter the home price and your down payment percentage.
- 2Enter the interest rate and loan term.
- 3Check the upfront and yearly insurance premium rates from your lender.
- 4Enter property tax as a percentage of the price, and yearly home insurance.
- 5Read the monthly payment and its breakdown.
Worked example
For a 300,000 home with 3.5 percent down, the down payment is 10,500 and the base loan 289,500. The upfront premium of 1.75 percent adds 5,066, making a loan of 294,566. At 6.5 percent over 30 years, principal and interest are about 1,862 a month. Yearly insurance of 0.55 percent adds 133, property tax at 1.1 percent adds 275 and home insurance 100, for a total of about 2,370 a month.
Remember that the payment on your statement may differ slightly, because lenders round premiums, collect taxes and insurance in an escrow account that is adjusted yearly, and may include flood insurance or homeowners association dues if they apply. Ask for a loan estimate from at least two lenders, and compare the annual percentage rate and the total of payments, not only the monthly figure, so you see how much the premiums add over the years you expect to hold the loan.
Ways to lower the payment
- Make a bigger down payment.
- Shop several lenders for the best rate.
- Improve your credit score before applying.
- Choose a home in an area with lower property taxes.
- Ask about a shorter premium period at 10% down.
Before you apply
Get a pre-approval, which shows what you can borrow, and compare it with a budget you are comfortable with. Lenders usually limit housing payments to about 31 percent of income, and total debts to 43 percent, under standard FHA rules, but approvals vary. Make sure you have savings left over for repairs and emergencies after closing.
Related tools
The Mortgage Calculator handles standard loans, the House Affordability Calculator shows how much you can borrow, the Down Payment Calculator plans your savings and the Debt-to-Income Calculator checks the ratios lenders use.
Features
- Upfront premium added to the loan
- Yearly mortgage insurance in the monthly cost
- Property tax and home insurance
- Minimum 3.5% down warning
- Loan-to-value shown
- Total cost breakdown
Frequently asked questions
What is the minimum down payment for an FHA loan?
3.5 percent of the price for borrowers with a credit score of 580 or higher. Borrowers with lower scores may need 10 percent or more, and lenders can set stricter rules of their own.
What is FHA mortgage insurance?
Two premiums protect the lender if you default. The upfront premium is usually 1.75 percent of the base loan, financed into the loan. The annual premium is a percentage of the loan, often 0.50 to 0.85 percent, paid monthly. Rates depend on the loan size, term and down payment.
How long do I pay the yearly premium?
For loans with less than 10 percent down, the premium usually lasts for the life of the loan. With 10 percent or more down, it can end after 11 years. Rules change, so confirm with your lender.
How is the payment calculated?
The loan (price minus down payment plus the upfront premium) is amortised over the term at your rate to get principal and interest. The yearly premium, property tax and insurance are divided by 12 and added.
Is an FHA loan better than a conventional loan?
It depends. FHA suits buyers with small down payments or lower credit scores, but the insurance can cost more over time than conventional private mortgage insurance, which can be cancelled once you have 20 percent equity.
Does the calculator include closing costs?
No. Closing costs commonly run 2 to 5 percent of the price and are paid in addition to the down payment unless negotiated with the seller. Ask your lender for a loan estimate.