Lowest cost over the years you keep the loan
ConventionalOver 7 years, the conventional loan costs about $5,513 less in interest and mortgage insurance. It costs $150,469, against $155,982 for the FHA loan.
SwitchWize decision guide
FHA vs Conventional Loan Calculator: Which Costs Less With Mortgage Insurance?
Both loans charge for mortgage insurance when your down payment is small. FHA charges an upfront premium and a monthly premium that often lasts the whole loan. Conventional PMI stops as you pay the loan down. The calculator adds interest and mortgage insurance for each loan.
What you can expect
- No login required
- No credit pull
- Assumptions shown
- Sources included
Quick answer
Get an FHA quote and a conventional quote for the same home. Enter both here, along with how long you plan to keep the loan. Pick the loan that costs less over those years.
FHA charges 1.75% of the loan up front, plus a yearly insurance premium. With less than 10% down, that premium lasts the whole loan. Conventional PMI stops once you owe 78% of the home's value. For a $350,000 home kept 7 years, conventional at 6.25% with a 0.5% yearly PMI rate costs about $5,500 less than FHA at 6%.
Compare current mortgage ratesIf FHA
Often costs less when your PMI quote is high or you plan to keep the loan only a few years.
If conventional
Often costs less when your PMI quote is low, because PMI stops and the FHA premium may not.
Key number to watch
Over 7 years, the loans cost the same at a PMI rate of about 0.74% a year.
Test your situation
See your result in dollars
Change any number below to match your situation. No login is required. Saved decisions stay on this device, and signed-in users can revisit them across devices.
$
The price you expect to pay for the home.
$
The cash you would put down with the FHA loan. FHA allows as little as 3.5% of the price.
$
The cash you would put down with the conventional loan. It can differ from the FHA amount.
years
Count the years until you expect to sell or refinance. Your own guess is fine.
Use the same term for both loans.
Your answer so far
Over 7 years, the conventional loan costs about $5,513 less in interest and mortgage insurance. It costs $150,469, against $155,982 for the FHA loan.
See the full breakdownFrom your lender's quote
Copy these from your Loan Estimate or written quote. Nothing leaves your browser.
%
The starting value is only an example. Enter the rate on your FHA Loan Estimate.
%
The starting value is only an example. Enter the rate on your conventional Loan Estimate.
%
The starting value is only an example. Ask your lender for the yearly PMI rate in your quote. Enter 0 if your quote has no PMI.
%
HUD, the federal housing department, charges 0.55% a year when you put down less than 5% on a loan longer than 15 years. Bigger loans pay more. Check your quote.
Over 7 years, the conventional loan costs about $5,513 less in interest and mortgage insurance. It costs $150,469, against $155,982 for the FHA loan.
FHA
$155,982
interest plus mortgage insurance over 7 years. Monthly payment with mortgage insurance: $2,217. Monthly mortgage insurance lasts the whole loan.
Conventional
$150,469
interest plus mortgage insurance over 7 years. Monthly payment with mortgage insurance: $2,186. Monthly mortgage insurance ends in month 133.
Try a scenario
What could change this
Over 7 years, the loans cost the same at a PMI rate of about 0.74% a year.
How certain: high
Over 7 years, the loans cost the same at a conventional rate of about 6.49%.
How certain: high
The conventional loan costs less however long you keep the loan.
How certain: high
Check these assumptions
- • Rates, mortgage insurance and fees come from your lender. Copy them from your Loan Estimate.
- • The calculator does not count what extra down payment cash could earn if you kept it.
- • With a credit score from 500 to 579, FHA needs at least 10% down.
- • The conventional loan needs $5,250 more cash up front.
What matters most
Lowest monthly payment
ConventionalFirst payment with mortgage insurance: FHA $2,217, conventional $2,186. Taxes and home insurance are not included.
Least mortgage insurance
ConventionalOver 7 years: FHA $18,512, with monthly premiums for all 30 years of the loan. Conventional $11,638, with PMI until month 133.
Side-by-side comparison
Smallest down payment
- FHA
- 3.5% of the price with a credit score of 580 or more
- Conventional
- Set by the lender
Upfront mortgage insurance
- FHA
- 1.75% of the loan, usually added to the loan
- Conventional
- None
Monthly mortgage insurance
- FHA
- A yearly premium, paid each month
- Conventional
- PMI with less than 20% down, at a rate from your quote
When monthly insurance ends
- FHA
- After 11 years with 10% or more down. Otherwise it lasts the whole loan.
- Conventional
- When you owe 78% of the original value, or 80% if you ask
Credit score 500 to 579
- FHA
- Allowed with at least 10% down
- Conventional
- Ask your lender
What could go wrong
FHA loan
- What needs to work
- You compare it with a real conventional quote, not a guess.
- Common problem
- You forget the premium lasts the whole loan with less than 10% down.
- What it could cost
- Years of monthly premiums you could have avoided.
- How to prepare
- Fair. Refinancing later can end the premium, but it costs closing fees.
Conventional loan
- What needs to work
- Your PMI rate stays as quoted and you keep paying on time.
- Common problem
- The PMI quote is higher than you expected.
- What it could cost
- Higher monthly insurance until PMI ends.
- How to prepare
- Good. PMI ends on a schedule, and you can ask to drop it at 80%.
A simple backup plan
Get both quotes for the same home
Ask lenders for an FHA quote and a conventional quote on the same price and term. Then compare them over the years you plan to stay.
- 1Ask for a Loan Estimate for each loan.
- 2Copy the rates, the PMI rate and the FHA premium into the calculator.
- 3Set the years you plan to keep the loan.
- 4See at what PMI rate, and after how many years, the cheaper loan switches.
Educational illustration only. The right amount depends on your needs and timing.
What to do next
Question 1
Is your credit score 580 or more?
Yes: Go to the next question.
No: FHA needs at least 10% down. Ask lenders what you qualify for.
Question 2
Do you plan to keep the loan for many years?
Yes: Conventional often costs less, because PMI ends.
No: Go to the next question.
Question 3
Is your PMI quote higher than the rate where the calculator says both loans cost the same?
Yes: FHA likely costs less.
No: Conventional likely costs less.
Plain-text decision tree. Is your credit score 580 or more? If yes, Go to the next question. If no, FHA needs at least 10% down. Ask lenders what you qualify for. Do you plan to keep the loan for many years? If yes, Conventional often costs less, because PMI ends. If no, Go to the next question. Is your PMI quote higher than the rate where the calculator says both loans cost the same? If yes, FHA likely costs less. If no, Conventional likely costs less.
When to check again
- You get a new rate or PMI quote.
- Your down payment changes.
- Your plans for how long to stay change.
- HUD changes the FHA premium.
Methodology
For each loan, the calculator adds interest and mortgage insurance over the years you keep the loan. For FHA it also adds the upfront premium. The home price and the money you pay back on the loan itself are the same either way, so they are left out.
The FHA premiums start at the HUD rates for a 30-year loan with less than 5% down. The interest rates and the PMI rate are plain examples. Replace them with your quotes.
- • It does not count what extra down payment cash could earn if you kept it.
- • The FHA yearly premium is based on the average amount you owe in each year.
- • PMI is charged on the starting loan amount. It ends when your regular payments bring what you owe down to the cutoff.
- • It leaves out taxes, home insurance and closing costs, which are alike for both loans.
FHA premium rules are checked against HUD every quarter. Editorial conclusions do not depend on affiliate availability.
Sources
HUD Mortgagee Letter 2023-05: FHA annual mortgage insurance premium ratesChecked November 5, 2026 · high confidence
Upfront premium 1.75% of the base loan. Yearly premium for terms over 15 years: 0.50% at 95% of value or less, 0.55% above 95%, higher above the national conforming loan limit. It lasts 11 years at 90% of value or less, else the whole term.
HUD Mortgagee Letter 2026-11: minimum credit score and loan-to-value limitsChecked November 5, 2026 · high confidence
A score of 580 or more allows the most financing. A score from 500 to 579 is limited to 90% of value. Below 500 is not eligible.
HUD: LoansChecked November 5, 2026 · high confidence
FHA down payments can be as low as 3.5% of the price.
CFPB: When can I remove private mortgage insurance from my loan?Checked November 5, 2026 · high confidence
Ask to cancel at 80% of original value. Automatic end at 78% if current. Must end after the midpoint of the loan term. FHA loans have different rules.
CFPB: What is private mortgage insurance?Checked November 5, 2026 · high confidence
PMI may be required on a conventional loan with less than 20% down.
Frequently asked questions
Is an FHA loan cheaper than a conventional loan?
It depends on your rates, your PMI quote and how long you keep the loan. FHA has an upfront premium and a yearly premium that can last the whole loan. Conventional PMI ends as you pay the loan down. The calculator shows which costs less for your numbers.
How much is FHA mortgage insurance?
For most home purchases, the upfront premium is 1.75% of the loan. For a loan longer than 15 years, the yearly premium is 0.50% to 0.55%. Very large loans, above a national size limit, pay more. Your Loan Estimate shows your amounts.
How long does FHA mortgage insurance last?
If you put down 10% or more, the yearly premium lasts 11 years. With less down, it lasts the whole loan term.
When does PMI end on a conventional loan?
The company that collects your payments must end PMI on its own. That happens when you are scheduled to owe 78% of the original home value, if your payments are up to date. You can ask to stop it at 80%. It must also end once you reach the halfway point of the loan term.
What credit score do I need for an FHA loan?
With a score of 580 or more, FHA allows its smallest down payment. With a score from 500 to 579, you need at least 10% down. Below 500, FHA will not insure the loan.
How do I find my PMI rate?
Ask the lender for the yearly PMI rate in your conventional quote. It depends on your credit score and down payment, so do not rely on a general number. Your Loan Estimate also shows the monthly PMI amount.