See exactly how much cash you need up front and how large your mortgage will be at any down-payment percentage.
How the Down Payment Calculator works
The down payment is your home price multiplied by your down payment percent, and the loan is whatever is left over. This calculator solves that two-line equation and then shows you the knock-on effects on your loan size and PMI.
The core formulas are:
- Down payment ($) = Home price x (Down payment % / 100)
- Loan amount = Home price - Down payment
- Loan-to-value (LTV) = Loan amount / Home price (the mirror of your down payment percent)
Each variable: Home price is the agreed purchase price, not the appraisal. Down payment % is the share you pay in cash. Down payment $ is that cash amount. Loan amount is the mortgage the lender funds. LTV is what underwriters and PMI rules actually watch.
Step by step, the tool:
- Reads your home price and your target down payment (entered as a percent OR a dollar amount - it converts one into the other).
- Computes the down payment dollars and the resulting loan amount.
- Calculates LTV and flags whether you cross the 80% LTV line (20% down) that ends most private mortgage insurance.
- If you are under 20% down, it estimates monthly PMI as a small annual percentage of the loan, divided by 12.
- Optionally maps the down payment to a savings timeline so you can see how many months of saving it represents.
Edge cases it handles: a 0% down entry (valid for VA and USDA loans, where the loan equals the full price); a down payment entered as dollars larger than common loan-program minimums; and the boundary at exactly 20%, where PMI switches off. It does not add closing costs to the down payment - those are a separate cash item, typically 2% to 5% of the price, that you also need at the table.
Example calculation
Here are three buyers at different price points and down payments, with every figure recomputed. All loans assume a 30-year term; payments shown are principal and interest (P&I) only.
Example 1 - First-time buyer, low down. Price $400,000, 5% down. Down payment = $400,000 x 0.05 = $20,000. Loan = $400,000 - $20,000 = $380,000. LTV is 95%, so PMI applies. At a 0.55% annual PMI rate, that is $380,000 x 0.0055 = $2,090/yr, or about $174/mo until the loan reaches 80% LTV.
Example 2 - Same buyer, 20% down. Price $400,000, 20% down. Down payment = $400,000 x 0.20 = $80,000. Loan = $320,000. LTV is 80%, so no PMI. The buyer needs $60,000 more cash than Example 1 but borrows $60,000 less and pays zero PMI.
Example 3 - FHA buyer. Price $300,000, 3.5% down (FHA minimum). Down payment = $300,000 x 0.035 = $10,500. Loan = $289,500, LTV 96.5%. FHA charges its own mortgage insurance premium, which on most 30-year FHA loans does not drop off automatically the way conventional PMI does.
Comparison of the $400,000 scenarios at a 6.8% rate (P&I + estimated PMI at 0.55%):
| Down % | Cash up front | Loan | P&I / mo | PMI / mo | Total / mo |
|---|---|---|---|---|---|
| 5% | $20,000 | $380,000 | $2,477.32 | $174.17 | $2,651.48 |
| 10% | $40,000 | $360,000 | $2,346.93 | $165.00 | $2,511.93 |
| 20% | $80,000 | $320,000 | $2,086.16 | $0.00 | $2,086.16 |
The takeaway: moving from 5% to 20% down costs $60,000 more in cash but cuts the monthly cost by $565.32 ($391.16 less P&I plus $174.17 of PMI removed). To pressure-test the payment column, run the loan figures through the mortgage calculator.
Tips for using the Down Payment Calculator
- Hitting exactly 20% down (80% LTV) is the cliff that ends conventional PMI - going from 19% to 20% can erase $100 to $300 a month, so if you are close, scraping together that last percent often beats almost any other use of the cash.
- You do not have to refinance to drop PMI on a conventional loan: by law (the Homeowners Protection Act) the servicer must cancel it automatically at 78% LTV based on the original schedule, and you can request cancellation at 80% - mark your calendar instead of paying it for years out of inertia.
- A 0% down VA or USDA loan is not free down payment money - VA charges a one-time funding fee (often about 1.25% to 3.3% of the loan) and USDA charges a 1% upfront guarantee fee, so the 'savings' partly move into the loan balance.
- Down payment and closing costs are two separate piles of cash - budget another 2% to 5% of the price for closing, or you can be 20%-down ready and still come up short at the table.
- If you are torn between 10% and 20%, price both: a bigger down payment shrinks the loan, and some lenders also quote a slightly lower rate at lower LTV, so the monthly gap can be larger than the loan reduction alone suggests.
- Never drain your emergency fund to reach 20% - foreclosure risk from zero cash reserves is worse than PMI, so keep 3 to 6 months of expenses and size the gap with the emergency fund calculator first.
- Gift funds count toward most conventional and FHA down payments, but lenders require a signed gift letter and a paper trail showing the money is a gift, not a loan - season it in your account early.
- On a conventional loan, putting down more than 20% rarely lowers your rate further - the big rate breakpoints cluster around the 80%, 90%, and 95% LTV tiers, so dumping every dollar past 20% may earn you little beyond a smaller balance.
- Lender-paid PMI (LPMI) trades the monthly premium for a higher rate that never cancels - it can look cheaper short term but costs more if you hold the loan past the point where normal PMI would have dropped off.
- If home prices in your area are rising, you may reach 20% equity from appreciation alone before you would by paying down principal - a future appraisal-based PMI removal can beat waiting on the amortization schedule.
20% down vs a low down payment: the real trade-off
A 20% down payment kills PMI and shrinks your loan, but a low down payment gets you into the home years sooner with cash to spare. Neither is automatically right - it depends on whether your bottleneck is cash or monthly budget.
The case for 20%: no PMI, a smaller loan, often a marginally better rate, and instant equity that protects you if prices dip. The case for low down (3% to 5%): you stop renting and start building equity now, you keep cash for emergencies and repairs, and in a rising market the home's appreciation can outpace the PMI you pay. Here is the same $400,000 home both ways at 6.8% over 30 years:
| Factor | 5% down | 20% down |
|---|---|---|
| Cash needed | $20,000 | $80,000 |
| Loan amount | $380,000 | $320,000 |
| Monthly P&I | $2,477.32 | $2,086.16 |
| Monthly PMI | ~$174 | $0 |
| Total monthly | ~$2,651 | $2,086 |
| Cash left for reserves | $60,000 more | Tied up in home |
The low-down buyer keeps $60,000 liquid but pays about $565 more every month. If you can invest or genuinely need that $60,000, low down can win; if you have the cash and want the lowest payment, 20% wins. Test the payment side independently in the mortgage calculator.
Low-down-payment programs at a glance
You can legally buy a US home with as little as 0% down through the right program - the minimum depends on the loan type, not the lender.
| Program | Min down | Key catch |
|---|---|---|
| Conventional | 3% | PMI until 80% LTV; income or first-time limits on some 3% products |
| FHA | 3.5% | Upfront + annual mortgage insurance; often stays for the life of the loan |
| VA (eligible veterans) | 0% | One-time funding fee; eligibility required |
| USDA (rural) | 0% | Property and income limits; upfront guarantee fee |
The pattern: the lower the down payment, the more you carry some form of mortgage insurance or fee. A 0% loan is not free - it just moves the cost into fees and a larger balance. Use this calculator to convert each program's minimum percent into the actual dollars you would owe, then size the gap to your savings with the savings goal calculator.
How a bigger down payment lowers four things at once
Every extra dollar of down payment reduces your loan, can lower your rate, cuts your monthly payment, and may erase PMI - four levers from one number.
- Loan size: dollar-for-dollar. $10,000 more down means $10,000 less borrowed.
- Interest rate: lenders price by LTV tier. Crossing into a lower tier (for example below 90% or below 80% LTV) can shave your rate, compounding the savings on a smaller balance.
- Monthly payment: a smaller loan at a possibly lower rate means a lower P&I every month for the entire term.
- PMI: reaching 20% down removes conventional private mortgage insurance entirely - a whole line item gone.
This is why the move from 5% to 20% in our example saves about $565/mo, not just the $391 from the smaller loan: the extra $174 is PMI disappearing. The flip side is opportunity cost - $60,000 locked in home equity is $60,000 you cannot invest or keep as a buffer, which is exactly the trade-off the next section warns about.
Common mistakes buyers make
The most expensive down payment mistakes are about cash flow and PMI rules, not the arithmetic.
- Draining the emergency fund to hit 20%. Reaching zero reserves to avoid PMI is a bad trade - a single job loss or roof repair can put a no-cash homeowner into crisis. Keep 3 to 6 months of expenses; the emergency fund calculator sizes that floor first.
- Forgetting closing costs. The down payment is not your total cash to close. Add 2% to 5% of the price for closing, plus moving and immediate repairs.
- Assuming PMI cancels the moment you 'feel' you have 20% equity. On conventional loans it auto-cancels at 78% LTV on the original schedule; you must request it at 80%. Many people overpay for months by not asking.
- Treating FHA insurance like conventional PMI. FHA mortgage insurance on most modern 30-year loans does not fall off automatically - escaping it usually means refinancing into a conventional loan once you have equity.
- Overshooting past 20%. Beyond 20% down, the rate rarely improves further, so extra cash buys only a smaller balance - sometimes that money does more invested or sitting in your reserves.
- Confusing this with affordability. A down payment you can scrape together does not prove you can carry the payment - check that separately with the loan affordability calculator.
Do it by hand or in Excel
The down payment math is two cells in any spreadsheet. With the home price in cell A1 and your down payment percent (as a decimal) in A2:
- Down payment dollars: =A1*A2
- Loan amount: =A1-(A1*A2), or simply =A1*(1-A2)
- LTV: =1-A2 (so 20% down = 80% LTV)
To estimate monthly PMI while under 20% down, put the annual PMI rate (say 0.0055) in A3 and use =(A1*(1-A2))*A3/12. To turn the down payment into a monthly P&I figure, feed the loan amount into Excel's payment function: =PMT(rate/12, years*12, -loan) - for a $320,000 loan at 6.8% over 30 years that is =PMT(0.068/12, 360, -320000), which returns $2,086.16, matching our table. To find how long saving the down payment takes ignoring interest, divide the goal by your monthly contribution: $80,000 / $1,500 = about 53 months. For a version that accounts for interest earned while you save, use the savings goal calculator.
Is your down payment 'good'? Benchmarks
There is no single 'right' down payment, but a few reference points tell you where you stand.
- 20% is the classic benchmark - it ends conventional PMI and is the cleanest path to the lowest monthly cost.
- 6% to 13% is roughly where many actual US buyers land; first-time buyers typically put down less than repeat buyers, who can roll prior home equity into a larger down payment.
- 3% to 3.5% are the conventional and FHA floors - common and perfectly valid, just paired with mortgage insurance.
- 0% is reserved for eligible VA and USDA borrowers.
A useful gut check: if your down payment leaves you with fewer than 3 months of expenses in reserve, it is too big for your situation, regardless of the percent. If it lands below 20% and the monthly PMI feels painful, that is the signal to either save longer or accept PMI as the cost of buying sooner. Convert your target percent into hard dollars here, then sanity-check the resulting payment against your budget in the mortgage calculator.
How to save the down payment and how long it takes
Saving a down payment is a fixed-goal problem: divide the dollars you need by what you can set aside each month, then shorten the timeline with rate and discipline.
On a $400,000 home, 20% down means $80,000. Ignoring interest, that is about 80 months ($1,000/mo), 53 months ($1,500/mo), or 40 months ($2,000/mo). In a 4% high-yield account the interest helps modestly - $1,000 a month reaches $80,000 in about 72 months instead of 80. Three accelerators: (1) keep the money in a high-yield account so it earns while you wait; (2) automate the transfer the day you get paid so it is saved before you can spend it; (3) target a lower-down program if the calendar matters more than the PMI. If your timeline is over a couple of years, model the interest your savings earn - a plain division understates how fast you get there. The savings goal calculator does that math and pairs naturally with this tool: set the dollar target here, then solve for the monthly contribution there.
Down payment quick reference: cash needed, loan size, and monthly payment
Your down payment sets two things at once: the cash you need up front and the loan you carry afterward. The table below recomputes both for three common home prices at four down-payment levels, with the monthly principal and interest (P&I) figured at a 6.75% rate over 30 years. Below 20% down, expect to add PMI of roughly $50 to $300 a month, and budget another 2% to 5% of the price for closing costs on top of every figure shown.
| Home price | Down % | Cash down | Loan amount | Monthly P&I (6.75%, 30 yr) |
|---|---|---|---|---|
| $300,000 | 3% | $9,000 | $291,000 | $1,887.42 |
| $300,000 | 5% | $15,000 | $285,000 | $1,848.50 |
| $300,000 | 10% | $30,000 | $270,000 | $1,751.21 |
| $300,000 | 20% | $60,000 | $240,000 | $1,556.64 |
| $400,000 | 3% | $12,000 | $388,000 | $2,516.56 |
| $400,000 | 5% | $20,000 | $380,000 | $2,464.67 |
| $400,000 | 10% | $40,000 | $360,000 | $2,334.95 |
| $400,000 | 20% | $80,000 | $320,000 | $2,075.51 |
| $500,000 | 3% | $15,000 | $485,000 | $3,145.70 |
| $500,000 | 5% | $25,000 | $475,000 | $3,080.84 |
| $500,000 | 10% | $50,000 | $450,000 | $2,918.69 |
| $500,000 | 20% | $100,000 | $400,000 | $2,594.39 |
The pattern is consistent: on a 30-year loan at this rate, every $10,000 you add to the down payment trims about $65 from the monthly payment. Moving from 5% to 20% down on the $400,000 home cuts P&I by about $389 a month and removes PMI entirely. Run your own price and rate on the mortgage calculator, or solve for the most house your cash supports with the loan affordability calculator.
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Mortgage Calculator · Home Affordability Calculator · Savings Goal Calculator · Emergency Fund Calculator · Mortgage Refinance Calculator · Extra Payment Mortgage Calculator
For a related deep dive, see CFPB down payment guidance.
Down Payment Calculator — frequently asked questions
- Why aim for 20%?
- 20% down typically avoids private mortgage insurance (PMI), lowering your monthly cost.
- Is a low down payment bad?
- It is not always bad, but it means a bigger loan, PMI and more interest.
- Is 20% down required?
- No — many programs allow 3–5%, but expect PMI and higher costs.
- Does a bigger down payment lower my rate?
- Often yes; more equity reduces lender risk and can improve pricing.
- How much is a 20% down payment on a $350,000 house?
- A 20% down payment on a $350,000 home is <strong>$70,000</strong> in cash, leaving a $280,000 loan. That 20% mark matters because it typically lets you skip private mortgage insurance (PMI) and often earns slightly better loan pricing. For comparison on the same home, 3% down is $10,500, 5% is $17,500, and 10% is $35,000. Remember closing costs of roughly 2% to 5% ($7,000 to $17,500) come on top of the down payment.
- How much does a 10% down payment instead of 20% cost per month on a $400,000 home?
- Putting 10% down instead of 20% on a $400,000 home costs roughly <strong>$253 more per month</strong> in principal and interest, plus PMI. At 6.5% over 30 years, the $360,000 loan (10% down) runs $2,275.44 versus $2,022.62 for the $320,000 loan (20% down). PMI at about 0.5% per year on $360,000 adds about $150 monthly, so your real gap is closer to $400 a month until PMI cancels. Test both on the <a href="/mortgage-calculator/">mortgage calculator</a>.
- How much PMI will I pay with 5% down on a $250,000 house?
- With 5% down on a $250,000 home, your $237,500 loan typically carries PMI of about <strong>$99 to $297 per month</strong>, depending on credit. At 0.5% per year that is $98.96 monthly; at 1% it is $197.92; at 1.5% it is $296.88. PMI usually drops off automatically once your balance reaches 78% of the original price ($195,000), or you can request cancellation at 80% ($200,000). At 6.5% over 30 years, reaching 78% takes about 11.2 years, costing roughly $13,359 in PMI at the 0.5% rate.
- How much does each $10,000 of down payment lower my monthly mortgage payment?
- Each extra $10,000 of down payment cuts your monthly principal and interest by about <strong>$63 to $70</strong>, depending on rate, on a 30-year loan. At 6.5% the reduction is $63.21 a month; at 7% it is $66.53; at 7.5% it is $69.92. So a $40,000 larger down payment at 7% trims roughly $266 monthly. The down payment shrinks the loan dollar-for-dollar, which is why this calculator solves for cash up front and loan size, not the payment itself.
- How much cash do I really need to buy a $400,000 house with 20% down?
- Plan on roughly <strong>$92,000</strong> in cash to buy a $400,000 home with 20% down. That is $80,000 for the down payment plus about $12,000 (3%) for closing costs like origination, title, appraisal, and prepaid taxes and insurance. Closing costs typically run 2% to 5% ($8,000 to $20,000), so the realistic range is $88,000 to $100,000. Do not forget moving costs and a cash cushion afterward; draining your <a href="/emergency-fund-calculator/">emergency fund</a> for a bigger down payment is a common mistake.
- How long will it take to save an $80,000 down payment?
- Saving $80,000 takes about <strong>6 years saving $1,000 a month</strong> in a 4% high-yield account, or 4.2 years at $1,500 a month. At $500 a month it stretches to roughly 10.8 years; at $2,000 a month it shrinks to about 3.2 years. The 4% interest helps modestly, shaving several months off the no-interest timeline. To work backward from a target date, use the <a href="/savings-goal-calculator/">savings goal calculator</a> to find the exact monthly amount you need.
- How much should I save per month to have a $60,000 down payment in 3 years?
- To reach a $60,000 down payment in 3 years, save about <strong>$1,571 per month</strong> in a 4% account. The math: $60,000 times the monthly rate (0.04/12) divided by ((1+0.04/12)^36 - 1) equals $1,571.44. The 4% interest covers roughly $3,428 of the total, so your own contributions are about $56,572. For a 5-year, $40,000 goal at 4.5%, the figure drops to about $596 a month. Keep down-payment savings in cash or short CDs, not stocks, on a 3-year horizon.
- Is 3% down on a conventional loan worth it versus saving for 20%?
- Putting 3% down can be worth it if home prices or rents are rising faster than you can save, but you pay for it with PMI and a bigger loan. On a $300,000 home, 3% down is $9,000 cash and a $291,000 loan; 20% down is $60,000 cash and a $240,000 loan. The smaller down payment adds roughly $331 a month at 6.75% plus PMI, but it gets you in years sooner. Weigh that against investing the difference: $40,000 at 7% grows to about $78,686 over 10 years, which is not guaranteed.
- What down payment percentage is $30,000 on a $350,000 home?
- A $30,000 down payment on a $350,000 home is <strong>8.57%</strong>, calculated as 30,000 divided by 350,000. That falls between the conventional 5% minimum and the 20% PMI-free threshold, so expect to pay PMI on the remaining $320,000 loan. To hit 20% ($70,000) you would need $40,000 more. As another example, $45,000 on a $380,000 home is 11.84%. This calculator converts cash to percentage and back so you can see exactly what your savings buy.
- Is it better to put 10% down and invest the rest, or put 20% down?
- Putting 10% down and investing the difference can win mathematically, but only if your investment return reliably beats your mortgage rate after the PMI cost. On a $400,000 home, choosing 10% down frees $40,000; invested at 7% it could grow to about $78,686 in 10 years. But 20% down guarantees savings of roughly $253 a month in payment plus about $150 in avoided PMI - a certain return. The guaranteed savings often beat uncertain market returns for risk-averse buyers; there is no free lunch.
- How much does VA or USDA 0% down financing actually cost up front?
- VA and USDA loans require <strong>$0 down</strong>, but VA charges a one-time funding fee (commonly about 2.15% of the loan for first use) and USDA charges a 1% upfront guarantee fee. On a $320,000 VA purchase, the 2.15% fee is $6,880, usually rolled into the loan to make it $326,880. There is no monthly PMI on a VA loan, though USDA carries a small annual fee. Zero down means a larger loan and a higher payment - about $2,022.62 monthly at 6.5% over 30 years on a $320,000 balance.
- How much down payment do I need to avoid PMI on a $300,000 house?
- To avoid PMI on a $300,000 home you generally need <strong>20% down, or $60,000</strong>, which keeps your loan at $240,000 (80% loan-to-value). Anything less on a conventional loan triggers PMI until you reach 20% equity. With 5% down ($15,000) the $285,000 loan would carry PMI of roughly $119 to $356 a month at 0.5% to 1.5% per year. A piggyback 80/10/10 second loan is one PMI-avoidance route, but it adds a second payment, so compare carefully.
- How much total interest does a $50,000 bigger down payment save over 30 years?
- A $50,000 larger down payment saves about <strong>$66,748 in interest</strong> over 30 years on a 6.75% loan. On a $500,000 home, going from 20% down ($400,000 loan) to 30% down ($350,000 loan) cuts total interest from roughly $533,981 to $467,234. Your monthly payment also drops about $324, from $2,594.39 to $2,270.09. The catch is liquidity: that $50,000 is locked in home equity and slow to access, so keep enough cash for emergencies and closing costs first.
- How much is an FHA 3.5% down payment on a $250,000 house, including mortgage insurance?
- An FHA 3.5% down payment on a $250,000 home is <strong>$8,750</strong> cash, but FHA adds mortgage insurance on top. The base loan is $241,250; the upfront MIP of 1.75% is about $4,222, usually financed into the loan to make it roughly $245,472. Annual MIP of about 0.55% adds around $113 a month. Unlike conventional PMI, FHA MIP often lasts the life of the loan unless you refinance, so factor that long-term cost into the trade-off versus a conventional 3% or 5% down loan.
Guides & articles
- How Much of a Down Payment Do You Need to Avoid PMI?
- How Long Does It Take to Save for a Down Payment?
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