FHA Loan Mortgage Calculator

You Found the House. Now You Need a Number.

You're standing in the kitchen of a house that checks every box, the neighborhood, the yard, the updated bathrooms, the commute. It's listed at $389,000. Your agent says "it's within your budget." Your gut says maybe. But what you actually need is a number: what will the monthly payment be, with taxes, insurance, and PMI if you're putting less than 20% down? That number, the real number, is what tells you whether to make an offer or keep looking.

What This Calculator Does

This mortgage calculator takes your loan amount, interest rate, loan term, property taxes, homeowner's insurance, and PMI (if applicable) and gives you a complete monthly payment breakdown. It separates your payment into principal, interest, taxes, and insurance, what lenders call PITI, so you can see exactly where every dollar goes. It also shows your total cost over the life of the loan, which is the number that really puts a mortgage in perspective.

How to Use This Calculator

Home price or loan amount. Enter the purchase price of the home. If you already know your loan amount (home price minus down payment), use that instead.

Down payment. Enter what you plan to put down as either a dollar amount or a percentage. The typical range is 3% (minimum for most conventional loans) to 20% (the threshold that eliminates PMI). If you're unsure, try 10% as a starting point.

Interest rate. Use a current rate quote from a lender or mortgage broker, not a national average headline you saw online. Rates vary by credit score, loan type, and lender. A 0.5% difference in rate changes your payment more than most people expect.

Loan term. Most buyers choose 30 years for the lower payment, or 15 years to pay less interest overall. The calculator works for any term.

Property taxes. Enter your estimated annual property taxes, then the calculator converts to monthly. If you don't know the exact figure, look up the home's current tax bill on the county assessor's website, it's public record. For a rough estimate, most U.S. properties are taxed between 0.5% and 2.5% of the home's value annually.

Homeowner's insurance. Budget $1,000–$2,500 per year for most single-family homes, though it varies widely by location, home value, and coverage level.

PMI. If your down payment is less than 20%, your lender will require private mortgage insurance. Typical PMI runs 0.5%–1.5% of the loan amount per year. Enter 0 if you're putting 20% or more down.

The Formula Behind the Math

The core of a mortgage payment calculation is the fixed-rate amortization formula:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:

Worked example: $350,000 loan at 6.75% interest for 30 years.

Plugging in:

M = 350,000 × [0.005625 × (1.005625)^360] / [(1.005625)^360 - 1]

(1.005625)^360 ≈ 7.6899

M = 350,000 × [0.005625 × 7.6899] / [7.6899 - 1]

M = 350,000 × [0.04326] / [6.6899]

M = 350,000 × 0.006463 ≈ $2,262/month (principal + interest only)

Add estimated taxes ($400/mo), insurance ($150/mo), and PMI ($175/mo) and your total payment is closer to $2,987/month.

Our calculator does all of this instantly, but now you understand exactly what it's computing.

First-Time Buyer Making $80,000 a Year

You earn $80,000 gross. As a rough rule, lenders typically allow a total housing payment (PITI) up to 28% of your gross monthly income, that's $1,867/month. Many lenders stretch that to 31%–36% for well-qualified borrowers, but let's use the conservative number.

With $1,867 to spend and a 6.75% rate over 30 years, you can afford a loan of roughly $285,000. Add a $30,000 down payment (around 9.5%) and you're looking at homes up to $315,000. Run that through the calculator with your actual tax estimates and insurance quotes, the output will be sharper than any general rule. One thing first-timers often underestimate: PMI. On a $285,000 loan, PMI can add $150–$200/month until you hit 20% equity.

Comparing a 15-Year vs. 30-Year Mortgage

Say you're borrowing $300,000 at today's rates. A 30-year term might carry a 6.75% rate; a 15-year term typically prices 0.5%–0.75% lower, so let's say 6.25%.

You'd pay $627 more per month on the 15-year, but save over $237,000 in interest. If you can swing the higher payment, the savings are dramatic. If the extra $627 would strain your budget, the 30-year gives you breathing room, and you can still make extra payments to pay it down faster without being locked into that higher obligation.

What Happens When You Put 10% Down Instead of 20%?

On a $400,000 home, 10% down means a $360,000 loan. At 6.75% over 30 years, your P&I payment is about $2,334. Add PMI (let's call it $270/month at 0.9%), taxes, and insurance and you might be at $3,300+/month total.

Put 20% down — $80,000 — and your loan drops to $320,000. P&I falls to about $2,075. No PMI. Same taxes and insurance. Total: around $2,775/month. That's a $525/month difference.

The question isn't just "do I have $80,000 for 20% down." It's also "what else could I do with that $40,000 difference?" If your investments earn more than 6.75% over time, putting less down and investing the rest might be rational. If you're not investing the difference, putting more down almost always wins.

Refinancing When Rates Drop Below Your Current Rate

You bought your home two years ago at 7.5%, with a loan balance now at $328,000. Rates have dropped to 6.25%. Your current P&I payment is about $2,219/month. After refinancing to 6.25% over 28 remaining years, your new payment would be roughly $2,048/month, saving you $171/month.

Closing costs on a refinance typically run $3,000–$6,000. At $171/month in savings, your break-even point is 18–35 months. If you plan to stay in the home for more than 3 years, the refinance likely makes sense. Run those numbers in our Refinance Calculator, this mortgage calculator shows you the new payment, and the refinance calculator shows you the break-even math.

When Rates Adjust: Using a Fixed Payment to Stress-Test an ARM

Adjustable-rate mortgages (ARMs) often start with a lower initial rate, maybe 5.5% fixed for 5 years, then adjustable. The payment looks great on day one. But what if rates reset to 8%?

Use this calculator twice: once at 5.5% to see your initial payment, and once at 8% to see what the worst-case scenario looks like. On a $350,000 loan, the difference is roughly $440/month. If your budget can absorb that increase, an ARM might be worth it. If that swing would hurt, the predictability of a fixed rate is worth paying for.

Tips and Things to Watch Out For

The biggest mistake buyers make is running the calculator with the teaser rate from an advertisement rather than a real rate quote tied to their credit profile. A 760 credit score and a 680 credit score can see rate differences of 0.5%–1% or more, which translates to hundreds of dollars per month on a large loan. Get pre-approved and use that actual rate in your calculations.

Property taxes catch people off guard more than almost anything else. The tax estimate on Zillow or Redfin often reflects the previous owner's tax situation, and in many states, reassessment at sale can nearly double the bill. Always look up the current tax on the county assessor's website and ask your real estate agent whether a reassessment is likely after purchase.

PMI disappears once you reach 20% equity, but it doesn't vanish automatically with most conventional loans, you have to request its removal in writing when you hit that threshold. Mark a calendar reminder so you don't keep paying it longer than necessary.

Don't forget that homeownership costs beyond PITI include maintenance (budget 1%–2% of home value per year), HOA fees if applicable, utilities, and eventual capital expenses like roof replacement or HVAC. A mortgage payment you can technically afford doesn't mean homeownership is comfortable at that price.

This calculator provides estimates for planning purposes, it is not financial advice. Actual loan terms, rates, taxes, and insurance will vary based on your specific situation, lender, and location. Talk to a licensed mortgage professional before making any borrowing decisions.

Frequently Asked Questions

How much house can I afford on a $70,000 salary?

A general starting point is that your total monthly housing costs (PITI) shouldn't exceed 28% of your gross monthly income. At $70,000/year, that's about $1,633/month for housing. Depending on your debt, credit score, and down payment, that supports a loan of roughly $240,000–$270,000, meaning a purchase price of $260,000–$300,000 with a typical down payment. Use the calculator with your actual rate and local tax estimates for a more precise figure.

What's included in a mortgage payment?

A full mortgage payment has four components, often abbreviated PITI: Principal (paying down the loan balance), Interest (the cost of borrowing), Taxes (property taxes, collected monthly and held in escrow), and Insurance (homeowner's insurance, also escrowed, plus PMI if your down payment was under 20%). Many people focus only on principal and interest, then get surprised by the real monthly total.

How does a higher down payment affect my mortgage payment?

A larger down payment reduces your loan amount directly, lowering your monthly principal and interest. It can also eliminate PMI (once you reach 20% down) and may qualify you for a lower interest rate. Every additional $10,000 in down payment on a 30-year mortgage at 6.75% reduces your monthly P&I by roughly $65.

Is it better to get a 15-year or 30-year mortgage?

It depends on your financial goals and cash flow. A 15-year mortgage builds equity faster and saves significantly on total interest, but the monthly payment is substantially higher. A 30-year mortgage gives you a lower required payment, preserving cash flow for emergencies, investing, or other goals, and you can still pay extra principal voluntarily. If you're not sure you'll always have enough cash flow to meet the higher 15-year payment, the 30-year with intentional extra payments gives you flexibility.

What credit score do I need to get the best mortgage rate?

Generally, a score of 760 or above gets you the best available rates from most lenders. Scores between 700–759 are still competitive. Below 680, you'll often pay a meaningfully higher rate or need to consider FHA financing. Each 20-point drop in score can cost you 0.25%–0.5% in rate, which matters significantly over a 30-year loan.

How is PMI calculated and when does it go away?

PMI (private mortgage insurance) is typically 0.5%–1.5% of your loan amount per year, divided across monthly payments. For a $300,000 loan at 1% PMI, that's $250/month. On conventional loans, you can request PMI removal once your loan-to-value ratio reaches 80% (either by paying down principal or through home value appreciation). Lenders are required to automatically cancel PMI when the loan reaches 78% LTV based on the original amortization schedule.

What's the difference between interest rate and APR on a mortgage?

The interest rate is the base cost of borrowing the principal. APR (Annual Percentage Rate) is a broader measure that includes the interest rate plus certain fees, origination fees, points, some closing costs, expressed as an annual percentage. APR is almost always higher than the stated rate. When comparing loan offers, APR gives you a more complete picture of the true cost, especially if lenders are charging different fee structures.

Related Calculators

Once you know your monthly payment, the Amortization Calculator shows you exactly how that payment breaks down between principal and interest every single month, and how much you'd save by making extra payments. If you're still in the "how much can I spend" phase, the Home Affordability Calculator works backward from your income and debts to give you a realistic price ceiling. And if you're trying to time your purchase around saving for a larger down payment, the Down Payment Calculator shows you exactly how long it takes to hit your target.