FHA Loan Calculator

Monthly payment, mortgage insurance, and true total cost for 2026

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration that allows down payments as low as 3.5% with a 580+ credit score. This calculator computes your full monthly PITI payment (principal, interest, taxes, insurance), both the upfront MIP of 1.75% financed into your loan and the annual MIP of 0.55% paid monthly — using 2026 HUD guidelines — plus total lifetime insurance cost and the break-even point to refinance into a conventional loan.

How FHA Loan Payments Are Calculated

FHA loans use the same amortization formula as conventional mortgages, but add two layers of mortgage insurance premium (MIP) that conventional loans don't have.

M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
VariableDefinition
MMonthly principal + interest payment
PTotal loan = (Home price − down payment) + Upfront MIP (1.75%)
rMonthly rate = Annual rate ÷ 12
nTotal payments (30 years × 12 = 360)

MIP components: Upfront MIP = base loan × 1.75% (financed). Annual MIP = base loan × 0.55% ÷ 12 per month (for LTV > 90%). Example: $350,000 home, 3.5% down ($12,250), base loan = $337,750, UFMIP = $5,911, total loan = $343,661 at 6.75% → monthly P&I = $2,229 + MIP = $154 = $2,383 before taxes and insurance.

💡 Expert Pro-Tip

FHA is a bridge, not a forever loan. Use FHA to buy now with 3.5% down, then refinance into a conventional loan once you hit 20% equity through payments and appreciation — eliminating MIP entirely. In a market appreciating at 4%/year, a $350,000 home reaches the 20% equity threshold in roughly 4–5 years even without extra payments. At that point, refinancing at a lower rate with no MIP often reduces your payment by $200–$400/month.

FHA Loan Calculator 2026

Loan Details

3.5% min (FHA)10% (MIP 11yr)20%
2026 avg FHA rate: ~6.75%
MIP Status: With <10% down, FHA MIP lasts the life of the loan. Put 10%+ down to limit MIP to 11 years.

Your Results

$2,825.45
Total Monthly Payment (PITI)
Principal & Interest$2,228.98
Monthly MIP (0.55% annual)$154.80
Property Tax (est.)$291.67
Homeowner's Insurance$150.00
Upfront MIP (financed)$5,910.63
Total Loan Amount$343,661
LTV Ratio96.50%
Total Interest Paid$458,771
Lifetime MIP Cost$55,729
FHA vs Conventional Insight
Your FHA loan costs $61,639 in total MIP over the loan life. Once you hit 20% equity, consider refinancing to a conventional loan to eliminate MIP and potentially lower your rate.

Based on your results — what to do next:

🏠

Confirm how much home you can actually afford

Your total PITI of $2,825.45/mo — run the affordability check to make sure it fits your income and DTI.

Check home affordability
📊

Compare FHA vs. conventional mortgage

FHA adds $55,729 in lifetime MIP. A conventional loan at 20% down might cost less overall — compare now.

Run conventional mortgage
⚖️

Will your DTI qualify for this FHA loan?

FHA allows up to 43% back-end DTI. Your $2,825.45/mo payment needs to clear that threshold.

Calculate your DTI