FHA vs Conventional Calculator
Same home, same price — which loan is actually cheaper? Compare FHA and conventional loans side by side including monthly payment, mortgage insurance, break-even point, and true lifetime cost.
FHA vs Conventional Break-Even Analysis
FHA often has a lower monthly payment (because the rate is lower for lower scores), but conventional PMI cancels at 80% LTV while FHA MIP can last the full 30 years. The break-even point is when the conventional loan becomes cheaper on a cumulative basis.
| Metric | FHA | Conventional |
|---|---|---|
| Interest Rate | 7.000% | 7.500% |
| MI / Month | $141 | $222 |
| MI Duration | Full term | Until 80% LTV |
| Total MI Cost | $56,567 | $32,585 |
| 30-Year Extra Cost | $528,551 | $537,045 |
True Lifetime Cost Comparison
FHA: upfront MIP is financed (you pay interest on it for 30 years), annual MIP may last forever. Conventional: PMI cancels automatically at 78% LTV — after that, your payment drops.
How to Use This FHA vs Conventional Calculator
Enter your home purchase details to get a direct side-by-side comparison of FHA and conventional loans for the same property.
Quick Comparison
Enter your Home Price, Down Payment %, Credit Score, and a Base Interest Rate. The calculator automatically adjusts rates and insurance costs for each program based on your credit score, then shows monthly payments side by side with a winner highlighted.
Advanced: Break-Even Point
Use the "Break-Even Point" tab to see exactly when the conventional loan becomes cheaper on a cumulative basis — even if FHA has a lower monthly payment today. The "Credit Score Impact" tab shows which program wins at each score tier. "Down Payment Scenarios" compares both programs across different down payment levels.
Pro: Lifetime Cost and Refinance Strategy
The "True Lifetime Cost" section accounts for FHA MIP lasting the full loan term vs. conventional PMI canceling automatically at 78% LTV. The "FHA to Conventional Refi" section calculates the optimal time to refinance out of FHA to eliminate MIP permanently.
How the Comparison is Calculated
FHA Monthly MIP = FHA Loan Amount × Annual MIP Rate ÷ 12
Annual MIP Rate: 0.50%-0.75% depending on loan size and LTV
Conventional PMI Rate: 0.2%-1.5% based on credit score and LTV
PMI auto-cancels when balance reaches 78% of original purchase price
Rate Adjustment: Both programs adjust rate based on credit score
At 700 credit score: FHA rate ≈ base rate, Conventional rate ≈ base + 0.50%
At 760+ credit score: Conventional becomes highly competitive
Example: $350,000 Home with 5% Down, 700 Credit Score
FHA vs Conventional head-to-head
| FHA | Conventional | |
| Down Payment | $17,500 (5%) | $17,500 (5%) |
| Base Loan | $332,500 | $332,500 |
| Upfront MI | $5,819 (financed) | None |
| Loan Amount | $338,319 | $332,500 |
| Rate | ~7.0% | ~7.5% (score adj) |
| P&I Payment | $2,251 | $2,326 |
| Monthly MI | $155 (MIP, full term) | $166 (PMI, cancels at 80% LTV) |
| Total Monthly | $2,406 | $2,492 |
| Total MI Paid | ~$55,800 (never cancels) | ~$13,280 (cancels ~yr 8) |
FHA wins on monthly payment by $86/month but loses on total cost because MIP never cancels. Conventional becomes cheaper in total around year 12-15 depending on appreciation.