PFCHow to use this calculator
Estimate the initial budget for a standard FHA purchase mortgage. The result separates loan payments from mortgage insurance and entered housing expenses.
- Review the example inputs and replace them with the figures for your scenario.
- Check the assumptions and select Calculate to view the estimate.
- Compare a second scenario or open the breakdown and download the full CSV.
Illustrative example
With the example inputs, estimated initial housing payment is $2,419.55. MIP rate: 0.55%; modeled duration: 30 years. Annual MIP uses the starting base loan as a budgeting approximation; servicer bills change with the insured balance. No loan-limit or eligibility check.
These example values are for explanation. They are not current market quotes or personalized recommendations.
Calculation method
Base loan equals price less down payment. Upfront MIP is 1.75% of the base loan. The fixed payment uses the financed balance; approximate monthly MIP equals base loan × annual MIP rate ÷ 12. Annual MIP rate and duration follow the modeled HUD term/LTV table.
Assumptions and limitations
Standard FHA purchase scenario only. Uses HUD Mortgagee Letter 2023-05 MIP rates and its $726,200 premium-tier threshold, which is not a county loan limit. Monthly MIP is an initial budgeting approximation based on the starting base loan, not the servicer’s annual average insured balance. Excludes special programs, closing costs, county loan-limit checks, credit/DTI eligibility, appraisals, and changes in escrow costs.
Sources
FHA loan calculator FAQs
Choose a question to read the answer, then try your own numbers in the free calculator.
Does this tell me whether I qualify for FHA financing?
No. A lender must check credit, income, property eligibility, local loan limits, and other program rules. The entered down payment does not establish approval.
Why does financing upfront MIP change my payment?
Financing adds the upfront premium to the amount borrowed. The principal-and-interest payment therefore includes repayment of that premium and interest on it.
Is the monthly MIP exact?
No. This budgeting estimate uses the starting base loan. Actual periodic MIP follows HUD’s insured-balance calculation and can change over time.
Is this calculator free?
Yes. You can calculate and download the breakdown without creating an account.
Are my numbers saved?
The app sends inputs to its calculation API to produce the result, but does not save them in an app database or browser storage.
PFC provides mathematical planning estimates. Tax and retirement rules in these tools are for 2026 and do not update automatically. Check the cited sources and the terms that apply to your situation.