FHA Loan Calculator
Model an FHA mortgage including the up-front premium financed into the balance and the annual mortgage insurance that, above 90% LTV, never comes off.
FHA Loan Calculator
Results recalculate instantly on every keystroke. Nothing you type is transmitted.
What this result does not account for
- Results are a model, not a quotation — an institution's own figures govern.
- Every input is an assumption; change one and the answer changes with it.
- Rounding is applied only at the display layer, so totals may differ by a cent from a statement that rounds each line.
In short: FHA loans allow a 3.5% deposit but charge two insurance premiums: 1.75% up front, normally added to the loan, plus an annual premium collected monthly. On a $420,000 home that is a $412,392.75 loan, $2,606.60 of principal and interest, and $185.76 of monthly MIP that lasts the full term.
Formula
The up-front premium is added to the balance and accrues interest; the annual premium is charged on the base loan, not the inflated one.
Worked Example
- Deposit. 3.5% of $420,000 = $14,700.00, leaving a base loan of $405,300.00.
- Up-front MIP. 1.75% of $405,300.00 = $7,092.75, financed into the balance.
- Total loan. $412,392.75, giving principal and interest of $2,606.60.
- Annual MIP. LTV is 96.50%, above the 95% step, so 0.55% of $405,300.00 = $185.76 monthly.
- Full payment. $2,606.60 + $185.76 + $385.00 + $150.00 = $3,327.37.
Analyst note. Because the deposit is under 10%, MIP runs for the entire term — $66,874.50 over thirty years, on top of the $7,092.75 charged up front. That is the true price of the low deposit, and refinancing to a conventional loan once you hold 20% equity is usually the only way to escape it.
Strengths & Limits Of This Model
Where this engine is strong
- Runs entirely in your browser — no figure you type is transmitted or stored.
- Shows the full working, so every number can be traced and challenged.
- Free, unmetered and free of affiliate incentives.
Where it stops
- Generalised assumptions cannot capture every individual circumstance.
- Jurisdiction-specific rules and mid-year changes may not be reflected.
- A model output is not a substitute for a professional review of your position.
Practical Use Cases
Buying with limited savings and a moderate credit score
FHA accepts 3.5% down at credit scores where conventional lending either refuses or prices punitively. Compare the all-in cost against a conventional loan with the PMI Calculator before assuming FHA is cheaper.
Planning the exit to a conventional loan
Since MIP does not terminate above 90% LTV, the refinance is part of the plan rather than an afterthought. Time it with the Refinance Calculator once equity reaches 20%.
Checking the payment against income limits
The MIP materially raises the payment and therefore the debt-to-income ratio. Test the result against your income with the Debt To Income Calculator.
Methodology & Editorial Standards
The base loan is the price less the deposit. The up-front mortgage insurance premium is calculated on that base at the user-supplied rate, defaulting to the standard 1.75%, and financed into the balance, which is how the overwhelming majority of FHA borrowers handle it. Principal and interest are amortised on the inflated balance. The annual premium is charged against the base loan rather than the inflated one and is stepped at the 95% LTV boundary, using 0.55% above and 0.50% at or below, which reflects the current schedule for 30-year loans; short-term and high-balance loans use different tables. Duration follows the statutory rule that loans originated above 90% LTV carry MIP for the full term, while those at or below 90% carry it for eleven years. County loan limits are not enforced. The engine implements the standard published formula for this calculation. Inputs are validated for domain and sign before evaluation, and any undefined case returns an em-dash rather than a spurious value.
Computation runs in IEEE-754 double precision at full internal precision; rounding to two decimal places occurs strictly at the display layer, so no cumulative drift enters the result. All monetary outputs use accounting presentation — grouped thousands, two decimals, negatives in parentheses — so figures can be transcribed directly into a model or working paper. Division-by-zero and out-of-domain inputs return an em-dash rather than a misleading number.
This engine was reconciled against an independent reference implementation and hand-verified for the worked example above before release. Our full five-stage review process is published on the About Us page.
Disclaimer. This calculator is provided for informational and modelling purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Verify all figures with a qualified professional before acting on them.
FHA Loan Calculator — 20 Expert FAQs
20 analyst-written answers to the questions practitioners actually ask — optimised for voice and answer-engine retrieval.
How much is the FHA down payment?
3.5% with a credit score of 580 or above, which on a $420,000 home is $14,700.00. Below 580 the requirement rises to 10%. FHA's appeal is precisely this low barrier to entry.
What is FHA MIP and how much does it cost?
Two premiums. Up front, 1.75% of the base loan — $7,092.75 here, normally financed. Annually, 0.50% to 0.55% of the base loan collected monthly, which is $185.76 in this example.
Does FHA mortgage insurance ever go away?
Only if you put at least 10% down, in which case it drops after eleven years. At 3.5% down it lasts the life of the loan — $66,874.50 over thirty years. Refinancing to conventional is the usual escape.
Is an FHA loan cheaper than conventional with PMI?
Often not over the long run. Conventional PMI terminates at 78% LTV whereas FHA MIP does not, so FHA tends to win on entry cost and lose on lifetime cost. Compare both over your expected holding period.
Can I roll the up-front MIP into the loan?
Yes, and almost everyone does. It raises the balance to $412,392.75 and means you pay interest on the premium for the full term. Paying it in cash at closing avoids that but increases cash to close.
What credit score do I need for an FHA loan?
580 for the 3.5% deposit, or 500 to 579 with 10% down. Individual lenders frequently impose overlays requiring 620 or higher, so the published FHA minimum is not always the practical one.
Are there FHA loan limits?
Yes, and they vary by county, ranging from a national floor to a much higher ceiling in expensive markets. This calculator does not enforce them, so confirm the limit for your county before relying on the result.
Can I use an FHA loan for an investment property?
No. FHA requires the property to be your primary residence, occupied within sixty days of closing. Multi-unit properties up to four units qualify if you live in one of them.
What is an FHA streamline refinance?
A simplified refinance between two FHA loans with reduced documentation and often no appraisal. It lowers the rate but keeps you in the MIP system, so it does not solve the lifetime insurance problem.
Why is the annual MIP charged on the base loan?
Because charging it on the inflated balance would mean paying insurance on the insurance premium. The base loan of $405,300.00 is the correct denominator, which is a small but frequently mis-modelled detail.
Does FHA allow gift funds for the deposit?
Yes, the entire deposit may be gifted by a family member, employer or approved organisation, provided it is properly documented with a gift letter and a clear paper trail showing the source.
How does the 95% LTV step work?
Loans above 95% LTV pay 0.55% annually; at or below, 0.50%. At 3.5% down the LTV is 96.50%, so the higher rate applies. Putting 5% down instead crosses the boundary and reduces the annual premium.
Is this fha loan calculator free to use?
Yes. It is free, requires no account, and has no usage limits. ApexConverter is funded by contextual advertising, never by selling user data.
Is my data sent to a server?
No. The engine runs as Vanilla JavaScript inside your browser under our Zero-Server Client-Side Execution model. Your figures are computed locally and are never transmitted, logged, or stored.
How accurate is this calculator?
It applies the standard closed-form formula in IEEE-754 double precision, rounding only at the display layer. The engine is reconciled against an independent reference implementation before release.
Does it work on mobile?
Yes. The interface is mobile-first with numeric keypad hints and is tested down to a 320-pixel viewport with no horizontal scrolling.
Can I use it offline?
Largely, yes. Because computation is client-side, the page continues to calculate without a network connection once it has loaded.
Which currency does it use?
Amounts display in US$ accounting format, but the underlying mathematics is currency-agnostic. The result is identical in any currency, so simply read the figures in your own.
Why does a result show an em-dash?
An em-dash indicates the calculation is not defined for the inputs given — typically a division by zero or a value outside the valid domain. We show a dash rather than a misleading number.
How do I report an error?
Email apexconverter.praxiscalc@gmail.com with the tool URL, your exact inputs, the output received and the output you expected. Verified mathematical errors are patched within 72 hours.