Buying a home with an FHA loan is one of the most popular choices for first-time buyers because of its flexible requirements, low down payment options, and affordable monthly payments. But understanding your exact mortgage cost—including principal, interest, property taxes, insurance, MIP, and HOA fees—can feel overwhelming.
This is where our FHA Loan Calculator becomes extremely helpful. It allows you to instantly estimate your total monthly FHA mortgage payment, breaking down each cost so you know exactly what to expect before applying for a loan.
Whether you’re comparing homes, exploring affordability, planning a budget, or preparing for pre-approval, this calculator gives you clear, accurate, and fast results based on real FHA rules and calculations.
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help buyers with moderate income, lower credit scores, or limited down payment resources. Benefits include:
- Minimum 3.5% down payment
- Lower credit score requirements
- Competitive interest rates
- Allows gifted down payments
- Includes Mortgage Insurance Premium (MIP)
Because of these advantages, FHA loans remain one of the most accessible mortgage options in the United States.
What Does the FHA Loan Calculator Do?
This calculator computes all essential components of an FHA mortgage, including:
✔ Loan Amount
After subtracting your down payment from the home price.
✔ Down Payment Amount
Based on your entered percentage (minimum 3.5%).
✔ Monthly Principal & Interest
Calculated using standard amortization formulas.
✔ Monthly Property Tax
Your annual property tax divided into monthly payments.
✔ Monthly Home Insurance
Breaks down yearly homeowners insurance into monthly cost.
✔ Monthly HOA Fees
If applicable, your monthly homeowners association charges.
✔ Monthly MIP (FHA Mortgage Insurance Premium)
Automatically calculated using FHA’s standard annual MIP rate.
✔ Total Monthly Mortgage Payment
A complete picture of what you will actually pay every month.
This gives you a full breakdown of your real monthly housing expense.
How to Use the FHA Loan Calculator
Using the calculator is simple and beginner-friendly. Just follow the steps:
Step 1: Enter the Home Price
Type the total purchase price of the home you want to buy.
Step 2: Enter Your Down Payment Percentage
The minimum for FHA is 3.5%.
You may enter a higher percentage if you plan to put down more.
Step 3: Enter the Interest Rate
Enter the annual interest rate your lender has quoted or the current FHA market rate.
Step 4: Choose the Loan Term (Years)
Most borrowers choose 30 years, but 15-year options are available too.
Step 5: Add Annual Property Tax
Enter the total yearly tax bill for the property.
Step 6: Add Homeowners Insurance Cost
Input the total annual premium you expect to pay.
Step 7: Add HOA Fees (If Any)
If your property has HOA dues, enter the monthly amount.
Step 8: Click “Calculate”
Instantly see a detailed breakdown:
- Loan amount
- Down payment amount
- Monthly principal & interest
- Monthly taxes
- Monthly insurance
- Monthly HOA
- Monthly FHA MIP
- TOTAL monthly FHA payment
Everything updates automatically based on your inputs.
Example FHA Loan Calculation
Let’s assume the following:
- Home Price: $350,000
- Down Payment: 3.5%
- Interest Rate: 6.0%
- Loan Term: 30 years
- Property Tax: $4,200/year
- Home Insurance: $1,200/year
- HOA Fees: $50/month
Your Results Would Be:
- Down Payment Amount: $12,250
- Loan Amount: $337,750
- Monthly Principal & Interest: ~$2,028
- Property Tax: $350/month
- Insurance: $100/month
- HOA: $50/month
- FHA MIP: ~$239/month
- Total Monthly FHA Payment: ~$2,767
This example shows how FHA loans break down into multiple components, not just principal and interest.
Benefits of the FHA Loan Calculator
✔ Helps you estimate affordability
Understand whether your income supports the monthly payment.
✔ Compare multiple homes
Test different home prices instantly.
✔ Understand FHA costs clearly
Especially MIP, taxes, and insurance.
✔ Plan your down payment
See how increasing or decreasing down payment affects your loan.
✔ Prepare for pre-approval
Know your estimated payment before speaking to lenders.
✔ Budget with confidence
Accurate estimates help you avoid surprises.
Pro Tips for FHA Loan Buyers
✔ Increase your down payment to lower MIP
Higher down payments reduce loan amount → lower MIP → lower monthly payment.
✔ Compare interest rates
Even a 0.5% difference can save thousands.
✔ Consider a 15-year FHA loan
Higher monthly payment but much lower total interest.
✔ Check property taxes carefully
Tax-heavy neighborhoods can raise your payment significantly.
✔ Avoid homes with high HOA fees
This can add hundreds per month to your payment.
Common Mistakes to Avoid
❌ Forgetting to include property taxes
Your payment estimate will be inaccurate.
❌ Ignoring FHA MIP
MIP is required for most FHA loans and adds a major cost.
❌ Entering interest rate incorrectly
Always confirm quoted rates.
❌ Underestimating insurance costs
Especially in high-risk states.
❌ Assuming HOA fees are optional
If the property is in an HOA community, fees are mandatory.
20 Frequently Asked Questions (FAQs)
1. What is the minimum down payment for an FHA loan?
The minimum is 3.5% if your credit score is 580 or higher.
2. Does the calculator include FHA mortgage insurance?
Yes, it automatically calculates your monthly MIP.
3. Can I change the FHA MIP rate?
No, the calculator uses the standard FHA MIP formula.
4. Should I use pre-tax or post-tax income for budget planning?
Use net monthly income for more accurate budgeting.
5. Does the calculator include closing costs?
No, closing costs vary widely and are not included.
6. Is the FHA loan amount always the home price minus down payment?
Yes, that’s the basic formula.
7. What loan term should I choose?
Most buyers select 30 years for lower monthly payments.
8. Why is FHA MIP required?
It protects lenders and allows buyers to qualify with lower down payments.
9. Can FHA MIP ever be removed?
For 30-year loans with <10% down, MIP lasts for the life of the loan.
10. Are HOA fees required?
Only if the property is in an HOA community.
11. Does a higher down payment lower monthly MIP?
Yes, because MIP is based on loan amount.
12. Can I estimate taxes if I don’t know them?
Check local county tax rates for accurate numbers.
13. Is homeowners insurance required?
Yes, lenders require an active insurance policy.
14. Can I use the calculator for refinancing?
Yes, but MIP and loan calculations may differ.
15. Does the calculator show amortization schedules?
No, it focuses on monthly payment breakdowns.
16. Is PMI the same as FHA MIP?
No, PMI is for conventional loans; FHA uses MIP.
17. What interest rate should I enter?
Use your quoted rate or today’s FHA rate.
18. Will HOA fees affect loan approval?
Yes, lenders include HOA in your debt-to-income ratio (DTI).
19. Does this calculator help with pre-approval?
Yes, it provides a strong estimate of what you can afford.
20. Is the FHA calculator free?
Yes, it’s completely free to use.
Conclusion
Our FHA Loan Calculator is an essential tool for anyone planning to buy a home using an FHA loan. By giving you a complete breakdown—including principal, interest, taxes, insurance, HOA fees, and MIP—it ensures you understand your full monthly mortgage cost before making a decision. Use it to compare homes, adjust down payments, test loan terms, and plan confidently for your home-buying journey.