FHA Loan Calculator — Calculate Your FHA Mortgage Payment — USA 2026
Free FHA loan calculator with mortgage insurance premium. Calculate monthly payments for FHA loans with as little as 3.5% down payment.
FHA loans are government-backed mortgages designed to help first-time homebuyers and those with lower credit scores achieve homeownership. With a minimum down payment of just 3.5% and credit score requirements as low as 580 FHA loans are significantly more accessible than conventional mortgages. However they require both an upfront mortgage insurance premium (1.75% of loan amount) and annual mortgage insurance premiums (0.55% for most borrowers) which add to your monthly cost.
Is FHA better than conventional loan?
FHA is better if you have a credit score below 680 or cannot save more than 5% down payment. However if your credit score is above 720 and you have 10%+ down a conventional loan often costs less overall because you can avoid mortgage insurance once you reach 20% equity. FHA mortgage insurance lasts the entire loan life unless you put 10%+ down.
Calculate Now
FHA Loan Calculator
How This Calculator Works
This calculator uses the standard reducing balance method to compute your monthly payments. The formula takes your loan principal, annual interest rate, and tenure to calculate the exact Equated Monthly Installment (EMI) or payment amount. Each monthly payment consists of two components — principal repayment and interest charges. In the early months, a larger portion goes toward interest, but as your outstanding balance decreases, more of each payment reduces the principal. This is why making extra prepayments in the early years of your loan saves significantly more interest than prepaying later.
Tips to Get the Best Loan Deal
Always compare the Annual Percentage Rate (APR) rather than just the advertised interest rate, as APR includes processing fees, insurance charges, and other costs. Negotiate your processing fee — most banks will reduce or waive it if you ask. Choose the shortest tenure your budget allows since longer tenures dramatically increase total interest paid. Check prepayment terms before signing — RBI mandates zero prepayment penalty on floating rate home loans in India. Finally, maintain a credit score above 750 to qualify for the best rates from any lender.
Key Information
| Parameter | Details |
|---|---|
| Minimum Down Payment | 3.5% (credit score 580+) |
| Upfront MIP | 1.75% of loan amount |
| Annual MIP | 0.55% of loan amount (most borrowers) |
| FHA Loan Limit (2026) | $498257 (standard) to $1149825 (high-cost) |
Calculate FHA loan payment
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
Is FHA better than conventional loan?
FHA is better if you have a credit score below 680 or cannot save more than 5% down payment. However if your credit score is above 720 and you have 10%+ down a conventional loan often costs less overall because you can avoid mortgage insurance once you reach 20% equity. FHA mortgage insurance lasts the entire loan life unless you put 10%+ down.
How much is FHA mortgage insurance?
FHA charges two types: an upfront MIP of 1.75% added to your loan balance and an annual MIP of 0.55% paid monthly. On a $300000 FHA loan the upfront MIP is $5250 (added to loan making it $305250) and annual MIP is $1650/year or $137.50/month. For loans with less than 10% down MIP lasts the entire 30-year term.
Can I remove FHA mortgage insurance?
With less than 10% down payment FHA MIP stays for the entire loan term. To remove it you must refinance into a conventional loan once you have 20% equity and a credit score above 620. With 10% or more down FHA MIP drops off after 11 years. Many borrowers plan to refinance to conventional after building equity.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI typically costs 0.5-1% of the loan amount annually and is added to your monthly payment. You can request PMI removal once your equity reaches 20% of the original home value, or it automatically drops at 22% equity.
How does a 30-year vs 15-year mortgage affect payments?
A 15-year mortgage has higher monthly payments but dramatically lower total interest. For a $300,000 loan at 6.5%, the 30-year option costs $1,896/month with $382,633 total interest, while the 15-year costs $2,613/month with only $170,389 total interest — saving you over $212,000. Choose 15-year if you can afford the higher payment.
What credit score do I need for a mortgage?
Conventional loans typically require a minimum score of 620, FHA loans accept 580 (or 500 with 10% down). A score above 740 qualifies you for the best rates. Each 20-point increase in your score can save 0.25% on your rate, which translates to thousands of dollars over the life of the loan.
How much down payment do I need to buy a house?
Conventional loans require 3-20% down. FHA loans accept as low as 3.5%. VA loans offer 0% down for eligible veterans. Putting less than 20% down means paying PMI. A larger down payment reduces your monthly payment, total interest, and may qualify you for better rates.
Related Calculators
More Loan Calculators
Last updated: March 2026