Fact-Checked and Reviewed by: David Chen, CFA
Last updated: December 2025
Use this FHA Mortgage Calculator to estimate your total monthly housing payment, including Principal & Interest, Property Taxes, Home Insurance, and the mandatory FHA Mortgage Insurance Premium (MIP).
FHA Mortgage Calculator
Estimated Monthly Payment (PITI + MIP)
FHA Mortgage Calculator Formula
The total monthly payment is the sum of four main components, often abbreviated as PITI + M:
- P&I: Principal and Interest
- T: Property Tax (Monthly)
- I: Home Insurance (Monthly)
- M: FHA Mortgage Insurance Premium (Monthly)
Where:
P = Loan Amount (Home Price – Down Payment + UFMIP)
i = Monthly Interest Rate (Annual Rate / 1200)
n = Total Number of Payments (Term in Years × 12)
Monthly MIP = (Base Loan Amount × Annual MIP Rate) / 12
Total Monthly Payment = PI + (Annual Tax / 12) + (Annual Insurance / 12) + Monthly MIP
Formula Sources: U.S. Department of Housing and Urban Development (HUD), Consumer Financial Protection Bureau (CFPB)
Variables Explained
The calculation requires the following inputs:
- Home Price: The total agreed-upon purchase price of the property.
- Down Payment (%): The percentage of the home price you pay upfront. FHA minimum is 3.5%.
- Annual Interest Rate (%): The yearly rate of interest charged on the loan.
- Loan Term (Years): The length of time (typically 30 or 15) you have to repay the loan.
- Annual Property Tax ($): The estimated yearly property tax bill.
- Annual Home Insurance ($): The estimated yearly homeowner’s insurance premium.
What is an FHA Mortgage Calculator?
An FHA mortgage calculator is a specialized tool used to estimate the monthly cost of a loan backed by the Federal Housing Administration (FHA). FHA loans are popular because they allow for lower credit scores and smaller down payments (as low as 3.5%).
Crucially, the FHA calculator accounts for two unique and mandatory insurance premiums that conventional loans do not require: the Upfront Mortgage Insurance Premium (UFMIP) and the Annual Mortgage Insurance Premium (MIP). These fees significantly impact the total loan amount and the resulting monthly payment.
Because FHA loans are designed to make homeownership accessible, the calculation must precisely include all escrowed items (taxes and insurance) and the required MIP to give the borrower a realistic picture of their total housing costs.
How to Calculate FHA Mortgage Payment (Example)
Let’s use an example with $300,000 Home Price, 3.5% DP, 6.5% Rate, 30 Year Term, $4500 Tax, $1200 Insurance:
- Determine Base Loan Amount: $300,000 Home Price – ($300,000 * 3.5\%) = $289,500.
- Calculate UFMIP and Total Financed Loan: $289,500 * 1.75\% UFMIP = $5,066.25. Total Financed Loan = $289,500 + $5,066.25 = $294,566.25.
- Calculate P&I: Use the amortization formula with P=$294,566.25, i=0.0054167 (6.5%/1200), n=360 (30*12). Result: Approximately $1,861.16.
- Calculate Monthly MIP: $289,500 * 0.85\% Annual MIP / 12 = $205.31.
- Calculate Monthly Tax & Insurance: Tax: $4,500 / 12 = $375. Insurance: $1,200 / 12 = $100.
- Total Monthly Payment: $1,861.16 (P&I) + $205.31 (MIP) + $375 (Tax) + $100 (Insurance) = $2,541.47.
Frequently Asked Questions (FAQ)
Is the FHA MIP required for the life of the loan?
For most FHA loans with a down payment less than 10%, the MIP is required for the entire life of the loan. If the down payment was 10% or more, the MIP is canceled after 11 years.
How much is the FHA Upfront Mortgage Insurance Premium (UFMIP)?
The UFMIP is typically 1.75% of the base loan amount. It is usually financed into the total loan amount, meaning you pay interest on this fee over the life of the loan.
What is PITI + M?
PITI + M is the common abbreviation for the total monthly housing payment. It stands for Principal, Interest, Taxes, Insurance, plus the mandatory Mortgage Insurance Premium (MIP) specific to FHA loans.
Can I refinance out of my FHA MIP?
Yes, many borrowers choose to refinance from an FHA loan into a conventional loan once they have reached at least 20% equity (80% LTV) in their home to eliminate the monthly MIP payment.
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