An FHA loan calculator is a financial tool used to help potential homebuyers determine the cost of an FHA-insured mortgage loan. The Federal Housing Administration (FHA) is a government agency that provides mortgage insurance to lenders who offer FHA loans to borrowers.

FHA loans are designed to help first-time homebuyers and individuals with lower credit scores or limited financial resources to purchase a home. FHA loans typically require a lower down payment and have more lenient credit and income requirements than conventional loans. However, borrowers are required to pay mortgage insurance premiums (MIP) for the life of the loan.

An FHA loan calculator takes into account the borrower's loan amount, interest rate, term, and MIP to provide an estimate of the monthly mortgage payment. Some calculators may also include property taxes and homeowners insurance in the calculation.

Using an FHA loan calculator can help potential homebuyers determine the affordability of a home and the amount of money they will need to budget for their monthly mortgage payment. It can also help borrowers compare the costs of an FHA loan to those of a conventional loan and determine which option is the best fit for their financial situation.

In addition to estimating the monthly mortgage payment, some FHA loan calculators may also provide information on the total interest paid over the life of the loan and the total cost of the loan. This information can be useful for borrowers who are trying to determine the most cost-effective option for their home purchase.

Overall, an FHA loan calculator is an important financial tool for anyone considering an FHA-insured mortgage loan. By using a calculator, potential homebuyers can determine the affordability of a home and make informed decisions about their mortgage options.