# What will my FHA loan payment be?

Computes the monthly payment on an FHA mortgage with HUD’s upfront and annual mortgage insurance premiums, property tax, home insurance, and HOA dues, with the full schedule.

- Page: https://www.acalculator.org/finance/fha-loan-calculator
- JSON spec: https://www.acalculator.org/finance/fha-loan-calculator.json
- Version: 1c45a4367a36

## Default answer

Example with the default inputs (Home price $300,000.00, Down payment $10,500.00, Interest rate 6.25%, Loan term (years) 30, Upfront premium Add to the loan, Property tax (per year) 1.1%, Home insurance $1,500.00, HOA dues $0.00, Loan start date September 30, 2026) on the example date Wednesday, September 30, 2026: An FHA loan of $294,566.25 at 6.25% over 30 years costs $2,345.68 a month, with $131.98 of mortgage insurance.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| price | Home price | The price of the home. |
| down | Down payment | The cash you pay toward the price, at least 3.5% of it. The base loan is the price minus this. |
| rate | Interest rate | The fixed yearly rate. The monthly rate is this ÷ 12. |
| years | Loan term (years) | The length of the mortgage: FHA loans run up to 30 years. |
| finance | Upfront premium | Add the 1.75% upfront premium to the loan, or pay it in cash at closing. |
| tax | Property tax (per year) | The yearly property tax as a percent of the home price. |
| insurance | Home insurance | The homeowners insurance premium. |
| hoa | HOA dues | Homeowners association or condo dues. |
| start | Loan start date | The day the loan starts. The first payment is one month later. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| monthly | Monthly payment | The first month’s total: principal, interest, FHA premium, tax, insurance, and HOA dues. |
| pi | Principal and interest | The level monthly payment on the loan. |
| mip | FHA annual premium (MIP) | The first month’s part of the FHA annual mortgage insurance premium. |
| taxes | Property tax | The property tax for one month. |
| insurance | Home insurance | The home insurance for one month. |
| hoa | HOA dues | The HOA dues for one month. |
| upfront | Upfront premium (UFMIP) | The FHA upfront premium: 1.75% of the base loan. |
| loan | Loan amount | The price minus the down payment, plus the upfront premium when it is added to the loan. |
| ltv | Loan-to-value | The base loan as a percent of the price. |
| mipRate | Annual premium rate | The FHA annual premium as a percent of the average balance, from HUD’s table. |
| mipMonths | Months of annual premium | 132 months (11 years) with 10% or more down, else every month of the loan. |
| mipTotal | Total annual premium | All the FHA annual premium paid. |
| interest | Total interest | All the interest over the loan. |
| total | Total cost | The down payment, the upfront premium if paid in cash, and everything paid over the loan. |

## Method

principal and interest = L × r ÷ (1 − (1 + r)^−n); upfront premium = 1.75% of the base loan; annual premium each year = HUD rate × the average of the year’s 12 scheduled balances, paid in 12 parts; tax, insurance, and HOA dues are added.

## Assumptions

- FHA premiums follow HUD Mortgagee Letter 2023-05, for loans from March 20, 2023 (checked September 2026).
- The rate is fixed, interest is charged monthly at the rate ÷ 12, and the first payment is one month after the start.
- FHA loan limits by county are not checked: enter a loan your county’s limit allows.
- Tax, insurance, and HOA dues stay the same; closing costs are not included; nothing is rounded between months.

## Worked examples

1. price = $300,000.00, down = $10,500.00, rate = 6.25%, years = 30, finance = loan gives upfront = $5,066.25, loan = $294,566.25, pi = $1,813.70, mip = $131.98, mipRate = 0.55%, mipMonths = 360. Source: HUD Mortgagee Letter 2023-05 premium table.
2. price = $300,000.00, down = $30,000.00, rate = 6%, years = 30, finance = cash, tax = 1.2%, insurance = $1,200.00 gives upfront = $4,725.00, loan = $270,000.00, pi = $1,618.79, mip = $111.87, mipRate = 0.5%, mipMonths = 132, mipTotal = $13,633.23, monthly = $2,130.66. Source: HUD Mortgagee Letter 2023-05 premium table.
3. price = $1,000,000.00, down = $200,000.00, rate = 6%, years = 15, finance = loan gives mipRate = 0.4%, mipMonths = 132, upfront = $14,000.00, loan = $814,000.00, mip = $261.54. Source: HUD Mortgagee Letter 2023-05: a 15-year term with a base loan above $726,200 and LTV over 78% up to 90% pays 40 basis points for 11 years.
4. price = $300,000.00, down = $30,000.00, rate = 0%, years = 30, finance = loan gives upfront = $4,725.00, loan = $274,725.00, pi = $763.13, mip = $110.78, mipMonths = 132, mipTotal = $12,148.13.

## FAQ

### What is the minimum down payment for an FHA loan?

HUD's minimum required investment is 3.5% of the price for borrowers with a credit score of 580 or more. On a $300,000 home that is $10,500. With a score from 500 to 579, the minimum is 10%.

### How much is FHA mortgage insurance?

There are two premiums. The upfront premium is 1.75% of the base loan, usually added to the loan. The annual premium for most 30-year loans is 0.55% with less than 5% down and 0.50% with 5% or more, paid monthly. These are the rates HUD set in Mortgagee Letter 2023-05 for loans from March 20, 2023.

### How long do I pay FHA mortgage insurance?

With 10% or more down (a loan-to-value of 90% or less), the annual premium stops after 11 years. With less than 10% down, it lasts for the whole loan. Many borrowers refinance into a conventional loan later to drop it.

### How does HUD calculate the monthly premium?

For each year of the loan, HUD takes the average of the 12 scheduled balances in that year, multiplies it by the annual rate, and divides by 12. So the monthly premium falls a little each year as the balance falls.

### Can I pay the upfront premium in cash?

Yes. You can pay it at closing or add it to the loan. Adding it means no extra cash at closing, but a slightly higher payment and more interest. Pick either option on this page to compare.

### Does this page check FHA loan limits?

No. FHA loan limits vary by county and change every year, so this page does not check them. Enter a loan your county's limit allows; HUD publishes the limits on its website.

## Sources

- U.S. Department of Housing and Urban Development, Mortgagee Letter 2023-05, Reduction of FHA Annual Mortgage Insurance Premium Rates (February 22, 2023; loans endorsed on or after March 20, 2023). https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-05hsgml.pdf
- U.S. Department of Housing and Urban Development, Monthly (Periodic) Mortgage Insurance Premium Calculation. https://www.hud.gov/hud-partners/housing-premium-calculation
- U.S. Department of Housing and Urban Development, What is the minimum down payment requirement for FHA? https://answers.hud.gov/FHA/s/article/What-is-the-minimum-down-payment-requirement-for-FHA
- Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3.