An FHA calculator that treats MIP as a first-class cost — because it is one
An FHA loan's low 3.5% down payment comes with two layers of mortgage insurance premium (MIP) that a generic mortgage calculator either ignores or folds into a single vague line: an upfront MIP of 1.75% of the loan, almost always financed into the balance, and an annual MIP (0.55% for the standard 30-year, low-down case) collected monthly. Together they can add five figures to the cost of the loan, and the annual premium's duration — life of the loan under 10% down, 11 years at 10% or more — is often the real reason borrowers refinance into a conventional loan later. This calculator models all of it explicitly, then adds taxes, insurance and the full amortization schedule.
Principal & interest uses the standard mortgage formula on the financed loan amount. MIP is charged on the original base loan amount — the usual calculator simplification, stated openly.
Worked example
A $300,000 home with the 3.5% minimum down ($10,500): the base loan is $289,500 and the upfront MIP is $5,066.25, financed to make a $294,566.25 loan. At 6.5% for 30 years, principal & interest is about $1,862 a month, plus $132.69 of monthly MIP — and because the down payment is under 10%, that MIP line runs for the life of the loan unless you refinance out of FHA.
How to use this calculator
- Enter the home price and your down payment percentage — 3.5% is the FHA floor for scores of 580 and up.
- Check the UFMIP and annual MIP fields against your lender's quote; the defaults are the standard current rates.
- Add taxes and insurance to see the true monthly cost your budget feels, not just the loan payment.
- Watch the MIP duration: try 10% down and see the MIP total change character — 11 years of it instead of 30.
- Compare against the conventional Mortgage Calculator in Related Tools: FHA wins on access, conventional usually wins on long-run cost once you can put 20% down.
Eligibility, briefly
FHA loans are insured by the Federal Housing Administration and issued by approved lenders. The headline rules: 3.5% down with a 580+ credit score (10% down at 500–579), the home must be your primary residence, and the loan must fall within your county's FHA loan limit. This page estimates payments only — it does not check eligibility, and a lender's Loan Estimate is the document that counts.