What will my FHA loan payment be?

How it works

Write V for the home price, D for the down payment, r for the yearly rate ÷ 1200 (the monthly rate as a decimal), and n for the months (years × 12, at most 30 years). The base loan is B = V − D, which must be more than 0. The loan-to-value (LTV) is B × 100 ÷ V, and it must be at most 96.5% (a down payment of at least 3.5%); otherwise there is no answer.

1. Upfront premium (UFMIP) = 1.75% of B. When it is added to the loan, the loan is L = B × 1.0175; when it is paid in cash, L = B.

2. Principal and interest. P = L × r ÷ (1 − (1 + r)^−n), or L ÷ n at 0%.

3. Annual premium rate from HUD Mortgagee Letter 2023-05, by term, base loan, and LTV:

• Term over 15 years, base loan up to $726,200: LTV up to 90%, 0.50% for 11 years; over 90% up to 95%, 0.50% for the whole term; over 95%, 0.55% for the whole term.
• Term over 15 years, base loan over $726,200: LTV up to 90%, 0.70% for 11 years; over 90% up to 95%, 0.70% for the whole term; over 95%, 0.75% for the whole term.
• Term of 15 years or less, base loan up to $726,200: LTV up to 90%, 0.15% for 11 years; over 90%, 0.40% for the whole term.
• Term of 15 years or less, base loan over $726,200: LTV up to 78%, 0.15% for 11 years; over 78% up to 90%, 0.40% for 11 years; over 90%, 0.65% for the whole term.

4. Monthly premium (MIP) for payment k (1, 2, 3, …). Following HUD's calculation method, the scheduled balances are those of the base loan B on its original schedule, with p = B × r ÷ (1 − (1 + r)^−n): after j payments the balance is B(1 + r)^j − p((1 + r)^j − 1) ÷ r. For loan year y (payments 12(y − 1) + 1 to 12y), the monthly premium is the annual rate × the average of the 12 balances after 12(y − 1), 12(y − 1) + 1, …, 12y − 1 payments, ÷ 12. The premium is paid on payments 1 to 132 when it lasts 11 years, or on every payment otherwise.

5. Other monthly costs. Property tax = the yearly tax rate × V ÷ 12. Home insurance = the yearly premium ÷ 12. HOA dues are monthly.

6. Monthly payment (the headline) = P + the first month's premium + property tax + home insurance + HOA dues.

7. Schedule and totals. Each month: interest = balance × r; principal = P − interest, except that payment n clears the balance. Each row adds that month's premium, tax, insurance, and HOA dues. Total interest, total annual premium, and the months with a premium are summed over the rows. The total cost is D, plus the upfront premium when paid in cash, plus everything paid in every row.

Assumptions

• Premium rates are HUD's for forward mortgages endorsed on or after March 20, 2023 (Mortgagee Letter 2023-05), checked in September 2026.
• The rate is fixed, and the first payment is one month after the start date.
• FHA county loan limits are not checked: you type the price and down payment.
• Property tax, insurance, and HOA dues stay the same. Closing costs are not included.
• Values are not rounded to the cent between months; HUD rounds the premium to the cent.
• The default rate is an example, not a current market rate.

When the data is out of date

The FHA premiums are HUD's rules in effect since March 20, 2023 (Mortgagee Letter 2023-05), checked in September 2026 and due for review by September 30, 2027. After that date the calculator keeps using them, and the result says “Uses FHA premium rules (HUD Mortgagee Letter 2023-05) as checked in September 2026”.

Worked examples by hand

A $300,000 home with 3.5% down ($10,500) at 6.25% over 30 years, premium added to the loan. B = 289,500 and the LTV is 96.5%. The upfront premium is 0.0175 × 289,500 = $5,066.25, so L = $294,566.25. With r = 0.0625 ÷ 12 and (1 + r)^−360 = 0.154103, P = 294,566.25 × 0.00520833 ÷ 0.845897 = $1,813.70. The LTV is over 95% on a 30-year loan with a base loan under $726,200, so the annual rate is 0.55% for the whole term (360 months). The base loan's payment is $1,782.50, and its first 12 scheduled balances average $287,962.67, so the first year's monthly premium is 0.0055 × 287,962.67 ÷ 12 = $131.98.

A $300,000 home with 10% down at 6% over 30 years, premium paid in cash, 1.2% property tax, $1,200 a year of insurance. B = 270,000 (LTV 90%). The upfront premium is 0.0175 × 270,000 = $4,725, paid in cash, so L = $270,000. With r = 0.005 and (1.005)^−360 = 0.166042, P = 270,000 × 0.005 ÷ 0.833958 = $1,618.79. An LTV of 90% gives 0.50% for 11 years (132 months). The first 12 scheduled balances average $268,496.76, so the premium is 0.005 × 268,496.76 ÷ 12 = $111.87. Tax is 0.012 × 300,000 ÷ 12 = $300 and insurance $100, so the monthly payment is $2,130.66. Over 132 months the premiums add up to $13,633.23.

A $1,000,000 home with 20% down at 6% over 15 years. B = 800,000, above $726,200, with an LTV of 80%: over 78% and up to 90% on a 15-year term gives 0.40% for 11 years (132 months). The upfront premium is 0.0175 × 800,000 = $14,000, so L = $814,000. The first 12 scheduled balances of the base loan average $784,615.28, so the premium is 0.004 × 784,615.28 ÷ 12 = $261.54.

A $300,000 home with 10% down at 0% over 30 years, premium added to the loan. B = 270,000 (LTV 90%, so 0.50% for 11 years). The upfront premium is $4,725, so L = $274,725 and P = 274,725 ÷ 360 = $763.125. At 0% the base loan's scheduled payment is 270,000 ÷ 360 = $750, so the balances in loan year y average 270,000 − 750 × (12y − 6.5). Year 1 averages $265,875, so the premium is 0.005 × 265,875 ÷ 12 = $110.78125. Over the 11 years the premiums add up to 0.005 × (11 × 270,000 − 750 × (12 × 66 − 11 × 6.5)) = 0.005 × 2,429,625 = $12,148.125, over 132 months.