FHACalc

FHA Loan Calculator

FHA loans let you buy with as little as 3.5% down — see what your payment would be.

Loan amount

Interest rate (APR)

Loan term: 5 years

What you entered

Loan amount: $25,000Interest rate: 7.5% APRTerm: 5 years

1
Convert the annual rate to a monthly rate
r = 7.5% ÷ 12= 0.6250%
2
Total number of monthly payments
n = 5 years × 12= 60 payments
3
Apply the amortizing-loan formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]= $500.95/mo
4
Total paid over the full term
$500.95 × 60 payments= $30,056.92
5
Total interest paid
$30,056.92 − $25,000.00 principal= $5,056.92

Result

Monthly payment: $500.95

Over 5 years you'll pay $5,057 in interest on top of the $25,000 you borrowed — $30,057 total.

FHA loan monthly payment at 6.5%

FHA loans allow a deposit as low as 3.5%, so the amount financed is high relative to the purchase price. Each row is principal and interest only at 6.5%.

Loan amount	15-year payment	20-year payment	30-year payment	Total interest over 30 years
$200,000	$1,742.21	$1,491.15	$1,264.14	$255,089
$250,000	$2,177.77	$1,863.93	$1,580.17	$318,861
$300,000	$2,613.32	$2,236.72	$1,896.20	$382,633
$400,000	$3,484.43	$2,982.29	$2,528.27	$510,178
$500,000	$4,355.54	$3,727.87	$3,160.34	$637,722

These figures are principal and interest only, and for an FHA loan that understates the real payment more than usual. FHA charges an upfront mortgage insurance premium, commonly 1.75% of the loan, usually financed into the balance, plus an annual premium collected monthly. On most FHA loans with a low deposit that annual premium lasts the life of the loan rather than falling away at 20% equity, which is the main reason borrowers refinance into a conventional loan once they have equity. Property tax and homeowners insurance are also extra. FHA's appeal is the low deposit and more forgiving credit requirements, not the total cost.

FHA loan basics

FHA loans are insured by the Federal Housing Administration and designed for borrowers with lower credit scores (580+ for 3.5% down, 500–579 for 10% down). They have more flexible qualification requirements but require mortgage insurance premiums (MIP) — both upfront (1.75% of loan) and annual (0.55–1.05% depending on term and LTV).

When FHA makes sense

FHA loans are ideal for first-time buyers with limited savings or credit scores below 700. Once you have 20%+ equity and a 700+ score, refinancing to conventional removes ongoing mortgage insurance. FHA loans have loan limits that vary by county.

Frequently asked questions

What credit score do I need for an FHA loan?

Minimum 580 for 3.5% down payment. Scores 500–579 require 10% down. Some lenders set their own minimums higher (620–640). FHA is significantly more lenient than conventional loans, which typically require 620+ and prefer 700+.

How much is FHA mortgage insurance?

Two parts: upfront MIP of 1.75% of the loan (can be rolled into the loan), plus annual MIP of 0.55% for most 30-year loans with >3.5% down. On a $250,000 loan: upfront MIP = $4,375, annual MIP = $1,375/year ($115/month). Unlike conventional PMI, FHA MIP lasts the life of the loan (for loans with <10% down).

FHA vs conventional loan — which is better?

FHA wins for: credit scores below 680, down payments under 5%, higher DTI ratios. Conventional wins for: credit scores above 720 (better rates), 20%+ down (no PMI at all), and long-term cost (PMI cancels at 20% equity, FHA MIP doesn't). Run both scenarios with your numbers.