Use this FHA Loan Calculator to estimate your monthly payment and how much cash you may need at closing, including FHA mortgage insurance (UFMIP and annual MIP). It shows two side-by-side scenarios so you can compare paying UFMIP in cash vs financing it into the loan.
Advanced options
How to use this calculator
- Enter the home price (usually the purchase price, or the appraised value if it is lower).
- Choose how you want to enter your down payment: Percent or Dollars.
- Enter your down payment amount. This affects your base loan amount and your loan-to-value (LTV).
- Enter your interest rate (APR or note rate) and pick a loan term (15 or 30 years).
- Open Advanced options if you want a more realistic monthly total: add property taxes, homeowners insurance, and HOA.
- In Advanced options, confirm the UFMIP rate and choose whether UFMIP is financed into the loan or paid in cash at closing (the results show both scenarios either way).
- Pick Annual MIP rate mode: use Auto to have the tool select a rate using term, LTV, and loan size, or switch to Manual if you need to enter a specific annual MIP rate.
- If you plan to pay extra each month, enter an extra payment to see an estimated payoff time and total interest.
- Add other closing costs (optional) to get a cash-to-close estimate.
- Click Calculate and compare the monthly payment and cash-to-close numbers for the cash-UFMIP vs financed-UFMIP scenarios.
Methodology
What this calculator estimates
This tool estimates (1) FHA monthly payment amounts and (2) estimated cash needed at closing. FHA loans include mortgage insurance, which can have an upfront premium (UFMIP) and an annual premium (annual MIP). FHA is a government-backed mortgage program, and the details of FHA loans and mortgage insurance are set by FHA rules. [1]
Inputs and key definitions
Base loan amount: Home price minus down payment. This is the starting loan amount before adding any financed UFMIP.
Loan-to-value (LTV): Base loan amount divided by home price, shown as a percent. Example: a 96.5% LTV means you are borrowing 96.5% of the home price and putting 3.5% down.
UFMIP (upfront mortgage insurance premium): A one-time insurance charge calculated as a percent of the base loan amount. This calculator lets you either pay it in cash at closing or add it to (finance it into) the loan balance.
Annual MIP (annual mortgage insurance premium): A yearly percent used to estimate a monthly MIP amount. This calculator estimates the first-month MIP using the starting balance; the dollar amount can change over time as the balance goes down.
Step 1: Down payment and base loan amount
Down payment in dollars is computed from your chosen input type: if you enter a percent, down payment dollars = home price x (down payment percent / 100). If you enter dollars, that value is used directly. Then base loan amount = home price minus down payment dollars.
Step 2: LTV
LTV percent = (base loan amount / home price) x 100. The calculator blocks the result if home price is 0 to avoid division by zero.
Step 3: UFMIP and starting balances for the two scenarios
UFMIP amount = base loan amount x (UFMIP rate / 100). Scenario A (UFMIP paid in cash): starting balance = base loan amount. Scenario B (UFMIP financed): starting balance = base loan amount + UFMIP amount.
Step 4: Monthly principal and interest (P and I)
For each scenario, the monthly principal-and-interest payment is calculated using the standard fixed-rate mortgage payment formula with principal equal to that scenario's starting balance. Monthly interest rate = (interest rate / 100) / 12 and number of payments = loan term years x 12. If the interest rate is 0, payment = principal / number of payments.
Step 5: Annual MIP rate and estimated first-month monthly MIP
If Annual MIP rate mode is Auto, the calculator selects an annual MIP rate using the loan term, LTV threshold, and base loan amount bracket. If the inputs do not match a known table row, the calculator requires Manual mode so you can enter an annual MIP rate yourself. Estimated monthly MIP at the start of the loan is computed as: monthly MIP = (annual MIP rate / 100) x (starting balance) / 12. The calculator shows this for both scenarios because financing UFMIP changes the starting balance.
Step 6: Taxes, insurance, HOA, and total monthly payment
Property tax is converted to a monthly amount using your chosen mode: if percent, monthly tax = (home price x (tax percent / 100)) / 12; if dollars per year, monthly tax = tax dollars per year / 12. Monthly homeowners insurance = yearly insurance / 12. HOA is added as a monthly amount. Estimated total monthly payment = P and I + monthly MIP + monthly tax + monthly insurance + HOA.
Step 7: Cash to close (estimate)
Cash to close is an estimate to help you plan. If UFMIP is paid in cash: cash to close = down payment + UFMIP amount + other closing costs. If UFMIP is financed: cash to close = down payment + other closing costs. This estimate does not automatically add lender prepaids or initial escrow funding unless you include them in other closing costs.
Step 8: Extra payments, payoff time, and total interest (estimate)
If you enter an extra monthly payment, the calculator estimates a payoff time by iterating month by month: monthly interest = balance x monthly interest rate; principal paid = (scheduled P and I + extra payment) minus monthly interest; next balance = balance minus principal paid. It sums monthly interest until the balance reaches 0. If extra payment is 0, payoff time is the normal term.
FHA loan limit sanity check (informational)
The calculator may show an informational note if your base loan amount is above a national floor or ceiling value used for context. This is not an approval or denial because actual FHA loan limits vary by county and can change by year. Always confirm the limit for the property location.
Validation and safety rules
The calculator blocks calculation and shows a clear error message if any required input is invalid (for example: home price must be greater than 0; down payment must be between 0 and the home price; percent down payment cannot exceed 100%; interest rate cannot be negative; term must be 15 or 30). Optional costs and rates must be non-negative. The tool also avoids divide-by-zero and non-finite numbers.