Enter Home price ($), Down payment (%) and Interest rate (%) and the remaining scenario settings to review loan amount with this tool. Upfront and recurring insurance affect different parts of the estimate.
FHA loans are government-backed mortgages with lower down payment requirements. Here's how the costs break down:
FHA loan costs:
Key insight: FHA loans have lower down payments but higher ongoing costs due to MIP. Compare with conventional loans to find the best fit.
Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
P = principal, r = periodic interest rate, n = number of payments.The calculation links Home price ($), Down payment (%) and Interest rate (%) to loan amount. Upfront and recurring insurance affect different parts of the estimate. Financing an upfront charge increases the balance on which interest is calculated.
Enter Home price ($), Down payment (%) and Interest rate (%) and the remaining scenario settings to review loan amount with this tool. Upfront and recurring insurance affect different parts of the estimate.
Build an illustrative mortgage payment that includes the FHA insurance assumptions shown in the form. Separate principal and interest from insurance and property-related costs.
Upfront and recurring insurance affect different parts of the estimate. Financing an upfront charge increases the balance on which interest is calculated.
Prepare Home price ($), Down payment (%), Interest rate (%), Loan term (years), Property tax rate (%), Insurance ($/year), Upfront MIP (%) and Annual MIP (%). Use a lender’s current FHA estimate for the rate and insurance inputs, then compare the full payment breakdown.
Upfront and recurring insurance affect different parts of the estimate. Financing an upfront charge increases the balance on which interest is calculated. Current eligibility, loan limits and insurance duration depend on official program rules and the borrower’s circumstances. Entered defaults are not a current approval or insurance quote.
Use the full settings in the worked-example table. They produce Loan amount: 294566. Compare the method and units as well as the displayed number.
The displayed relationship is Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments. Use a lender’s current FHA estimate for the rate and insurance inputs, then compare the full payment breakdown.
Current eligibility, loan limits and insurance duration depend on official program rules and the borrower’s circumstances. Entered defaults are not a current approval or insurance quote. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
Worked fha loan calculator example. Set Home price ($) = 300000; Down payment (%) = 3.5; Interest rate (%) = 6.5; Loan term (years) = 30 years; Property tax rate (%) = 1.2; Insurance ($/year) = 1200; Upfront MIP (%) = 1.75; Annual MIP (%) = 0.55. The corresponding output is Loan amount: 294566. Upfront and recurring insurance affect different parts of the estimate.
Build an illustrative mortgage payment that includes the FHA insurance assumptions shown in the form. Separate principal and interest from insurance and property-related costs.
Use a lender’s current FHA estimate for the rate and insurance inputs, then compare the full payment breakdown.
| Field | Example value | Entry check |
|---|---|---|
| Home price ($) | 300000 | Use the amount for this scenario in the currency and period shown by the field. |
| Down payment (%) | 3.5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Interest rate (%) | 6.5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Loan term (years) | 30 years | Use the period unit in the field label; months and years are not interchangeable. |
| Property tax rate (%) | 1.2 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Insurance ($/year) | 1200 | Check whether this amount is one-time, monthly or annual before entering it. |
| Upfront MIP (%) | 1.75 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Annual MIP (%) | 0.55 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
Relationship used for this example: Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments.
Upfront and recurring insurance affect different parts of the estimate. Financing an upfront charge increases the balance on which interest is calculated.
| Output | Displayed result |
|---|---|
| Loan amount | 294566 |
With these settings, loan amount is 294566. Use the same units and calculation mode when reproducing this example.
Upfront and recurring insurance affect different parts of the estimate. Financing an upfront charge increases the balance on which interest is calculated. Current eligibility, loan limits and insurance duration depend on official program rules and the borrower’s circumstances. Entered defaults are not a current approval or insurance quote.
Replace the illustrative home price ($) value (300000) with your own value, then complete the other inputs for the same scenario. Use a lender’s current FHA estimate for the rate and insurance inputs, then compare the full payment breakdown.