David is a Chartered Financial Analyst and a certified FHA mortgage underwriter with 15 years of experience in government-backed loans.
This 4-in-1 FHA Loan calculator helps you estimate your monthly payment (P&I). Enter any three values for your FHA loan—Principal, Rate, Term, or Payment—and we will solve for the fourth.
FHA Loan Calculator
FHA Loan (Amortization) Formulas
i = R / 12 / 100 (Monthly Rate)
n = T * 12 (Number of Months)
Solve for Monthly Payment (M):
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Solve for Loan Amount (P):
P = M * [ (1 + i)^n – 1 ] / [ i(1 + i)^n ]
Solve for Term (n):
n = log( M / (M – P*i) ) / log(1 + i)
Solve for Rate (i):
(No direct formula; solved iteratively)
Formula Variables
- (P) Loan Amount: The total loan principal. For FHA, this is the amount *after* the Upfront MIP (UFMIP) has been added.
- (R) Annual Rate: The Annual Percentage Rate (APR) you receive from your lender.
- (T) Loan Term: The loan term, typically 30 years for FHA loans.
- (M) Monthly Payment: The fixed monthly payment (Principal & Interest only). This does *not* include the separate *monthly* MIP payment, taxes, or insurance.
Related Calculators
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What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD). This insurance protects lenders against losses if a borrower defaults, encouraging them to offer loans to individuals who might not qualify for a conventional loan.
The primary benefits of FHA loans are their low down payment requirement—as low as 3.5%—and more flexible credit score guidelines. This makes them extremely popular with first-time homebuyers and those with less-than-perfect credit. The trade-off is that FHA loans require borrowers to pay a Mortgage Insurance Premium (MIP). This comes in two parts: an Upfront MIP (UFMIP) that is usually rolled into the loan amount (P), and an annual MIP that is paid monthly as part of your total housing payment.
This calculator is designed to help you estimate the Principal & Interest (P&I) portion of your monthly payment. Your total payment will be higher once you add your monthly MIP, property taxes, and homeowner’s insurance.
How to Calculate an FHA Loan Payment (Example)
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Identify New Loan Variables
You are getting a 30-year FHA loan. Your purchase price is $295,000, but after adding the UFMIP, your final loan amount is $300,000.
• Loan Amount (P): $300,000
• Annual Rate (R): 6.5%
• Loan Term (T): 30 years -
Convert to Monthly Terms (i, n)
The formula uses monthly values:
• Monthly Rate (i): 6.5% / 12 / 100 = 0.0054167
• Number of Months (n): 30 years * 12 = 360 -
Choose the Payment Formula
Use the standard formula to solve for Monthly Payment (M):
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] -
Calculate the Monthly Payment
Plug in the monthly values:
• Numerator: 0.0054167 * (1 + 0.0054167)^360 = 0.03797
• Denominator: (1 + 0.0054167)^360 – 1 = 6.002
M = $300,000 * [ 0.03797 / 6.002 ]
M = $300,000 * 0.006326 = $1,897.80
Your new monthly P&I payment will be $1,897.80. (Note: You must still add your monthly MIP to this).
Frequently Asked Questions (FAQ)
What is FHA Mortgage Insurance (MIP)?
MIP is mandatory on all FHA loans. It includes an Upfront Premium (UFMIP), currently 1.75% of the loan amount, and an annual premium paid monthly. For most borrowers putting down less than 10%, this monthly MIP lasts for the entire life of the loan.
Is FHA only for first-time buyers?
No. While extremely popular with first-time buyers, FHA loans are available to anyone, including repeat buyers. You can only have one FHA loan at a time in most situations.
What are FHA loan limits?
The FHA sets maximum loan amounts based on county. These “loan limits” vary significantly between standard-cost and high-cost areas. You cannot get an FHA loan for an amount that exceeds the limit in your county.
What is the difference between FHA and Conventional loans?
FHA loans are government-insured, have easier credit requirements, and require MIP. Conventional loans are not government-insured, typically require higher credit scores, and use Private Mortgage Insurance (PMI), which can often be canceled once you reach 20% equity.