MasterTool

FHA Loan Calculator

Calculate fha loan from your own entered figures.

HUD Mortgagee Letter 2023-05 (FHA Annual MIP reduction, effective for case numbers assigned on or after March 20, 2023) last updated · reference source

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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.

Dated static reference; no live data is fetched. Verify current source values and assumptions before relying on results.

What this tool does

Calculate fha loan from your own entered figures. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.

How to use the FHA Loan Calculator

  1. Enter or select home price.
  2. Enter or select down payment (%).
  3. Enter or select interest rate (%).
  4. Enter or select loan term (years).
  5. Read the calculated result; change any measurement to compare alternatives.

Formula

base loan = price − down payment; upfront MIP = 1.75% of the base loan, financed, so the total loan = base × 1.0175; annual MIP from the HUD table by term, loan size and LTV is charged monthly on the base loan; MIP runs 11 years when LTV ≤ 90%, otherwise the full term
price
Home price
downPct
Down payment (%)
rate
Interest rate (%)
termYears
Loan term (years)

MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.

Worked example

For fha loan calculator, the following measurements illustrate the exact method: Home price: 350000; Down payment (%): 3.5; Interest rate (%): 6.25; Loan term (years): 30.

Inputs

  • Home price$350000
  • Down payment (%)3.5 %
  • Interest rate (%)6.25 %
  • Loan term (years)30

Result

  • Monthly principal & interest$2,115.98
  • Monthly MIP$154.80
  • Total monthly (P&I + MIP)$2,270.78
  • Base loan amount$337,750.00
  • Upfront MIP (financed)$5,910.63
  • Total loan amount$343,660.63
  • Annual MIP rate0.55%
  • Total MIP over its required life$61,639.38
  • Total interest$418,091.30

Results explained

Monthly principal & interest
Monthly principal & interest from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.
Monthly MIP
Monthly MIP from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.
Total monthly (P&I + MIP)
Total monthly (P&I + MIP) from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.
Base loan amount
Base loan amount from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.
Upfront MIP (financed)
Upfront MIP (financed) from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.
Total loan amount
Total loan amount from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.
Annual MIP rate
Annual MIP rate from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.
Total MIP over its required life
Total MIP over its required life from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.
Total interest
Total interest from the formula above. MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.

Frequently asked questions

base loan = price − down payment; upfront MIP = 1.75% of the base loan, financed, so the total loan = base × 1.0175; annual MIP from the HUD table by term, loan size and LTV is charged monthly on the base loan; MIP runs 11 years when LTV ≤ 90%, otherwise the full term

MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.

No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.

This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.

Check period consistency, currency, percentage inputs and the assumptions: MIP rates are the HUD Mortgagee Letter 2023-05 schedule stored in the dated loan-programs data file. Annual MIP is modeled as a level charge on the base loan amount; HUD actually recalculates it on the declining average balance, so your servicer's figure drifts slightly lower over time.