Down Payment Calculator

Say you are buying a $400,000 home and plan to put 10% down. That down payment is $400,000 × 0.10 = $40,000, leaving a loan of $360,000. Because 10% is below 20%, you would also pay private mortgage insurance (PMI) until you build enough equity. To skip PMI entirely you would need 20% — that is $80,000 — so this calculator also shows the extra $40,000 you would need to get there. This down payment calculator turns a home price and a percent (or dollar amount) into the four numbers that matter most: the down payment, the loan amount, whether PMI applies, and the cash needed to reach 20%.

How the down payment is calculated

The math is simple and works in both directions:

If you enter a dollar amount instead, the percentage is just the down payment divided by the home price × 100. The toggle on the calculator lets you work either way, which is handy when you have a fixed amount of savings rather than a target percentage.

Down payment by loan type

The minimum you can put down depends on the loan program:

• Conventional: as low as 3% down for many buyers; 20% to avoid PMI.
• FHA: 3.5% down with a qualifying credit score (10% for lower scores).
• VA: 0% down for eligible service members, veterans and surviving spouses.
• USDA: 0% down for eligible buyers in qualifying rural areas.

A smaller down payment gets you into a home sooner but means a larger loan, more interest, and usually mortgage insurance. A larger down payment lowers your monthly cost but ties up more cash.

Why 20% down is the key threshold

On a conventional loan, putting down 20% or more means you do not pay PMI. With less than 20%, the lender adds PMI to your monthly payment to offset default risk. The good news: under the federal Homeowners Protection Act, your lender must automatically cancel PMI once the balance reaches 78% of the original value, and you can request cancellation at 80%. So even if you start under 20%, PMI is not forever.

How much should you actually put down?

There is no universally right answer. Putting down enough to avoid PMI can save money over time, but draining your savings to do it is risky — you still need cash for closing costs (often 2%–5% of the loan), moving, repairs and an emergency fund. Many buyers find a middle ground: enough to keep the payment comfortable without leaving themselves cash-poor. Use the tier table in the calculator to compare 3.5%, 5%, 10% and 20% side by side for your price point.

How to use this down payment calculator

You only need two numbers to get a useful answer. Work through the fields in order:

1. Home price: enter the purchase price or the top of your target range.
2. Down payment: use the toggle to enter either a percentage (say 10%) or a fixed dollar amount (say $35,000). The calculator converts between the two automatically.
3. Read the results: the tool shows your down payment in dollars and percent, the resulting loan amount, whether PMI applies, and how much more cash you would need to reach 20%.
4. Compare tiers: scan the 3.5% / 5% / 10% / 20% comparison to see how each choice changes the loan size and the PMI flag at your price point.

Because the math runs both ways, the calculator is just as useful when you have a fixed pile of savings as when you have a target percentage in mind. Enter what you have, and it tells you what percentage that buys you and whether it clears the 20% bar.

Who this calculator is for

This tool helps anyone trying to turn a home price into a concrete savings goal. That includes:

• First-time buyers figuring out how much cash they actually need before they start touring homes.
• Savers setting a monthly target and a realistic timeline to reach a chosen percentage.
• Buyers weighing PMI who want to see exactly how much more they would need to skip mortgage insurance.
• People comparing loan types — checking what 3.5% on FHA versus 20% conventional means in real dollars.
• Move-up buyers estimating how much of their sale proceeds will cover the next down payment.

A second worked example: a fixed budget

Suppose you have saved $30,000 and you are looking at a $350,000 home. Entering the dollar amount, the calculator shows that $30,000 is about 8.6% down, leaving a loan of $320,000. Because 8.6% is under 20%, PMI applies. To reach the 20% threshold ($70,000) you would need $40,000 more — a big gap. From here you have clear options: buy now with PMI and cancel it later, shop a slightly cheaper home so your $30,000 stretches further (on a $250,000 home it is 12%), or keep saving. Seeing the percentage, the loan amount and the gap to 20% in one place turns a vague "is this enough?" into a concrete plan.

Factors that change how much you should put down

The "right" down payment is a balance of competing pressures. The ones that move the decision most are:

• Loan type: a VA or USDA loan can be 0% down, while a conventional loan needs 20% to skip PMI — the same buyer can have wildly different minimums.
• PMI cost: if mortgage insurance on your loan is cheap, paying it temporarily may beat draining your savings to reach 20%.
• Cash reserves: lenders and good sense both favor keeping a few months of payments in the bank after closing.
• Closing costs: 2%–5% of the loan is due on top of the down payment, so a bigger down payment leaves less for fees.
• Interest rate: a larger down payment lowers your loan-to-value ratio, which can earn a marginally better rate.
• How long you will stay: if you plan to move in a few years, tying up extra cash for a small monthly saving may not pay off.

Tips to reach your down payment faster

If the gap to your target feels large, a few moves shorten the timeline:

• Automate the savings: a standing transfer to a separate high-yield account on payday makes the down payment grow without willpower.
• Lower your target percentage: dropping from 20% to 10% (or 3.5% on FHA) can cut years off the wait — accept temporary PMI and cancel it later.
• Use down payment assistance: state housing finance agencies, cities and nonprofits offer grants and low-interest second loans for eligible buyers.
• Consider gift funds: many programs allow family gifts toward the down payment with a gift letter.
• Shop a lower price: the same savings buys a higher percentage on a cheaper home, which can flip the PMI flag off.

Key down payment terms explained

• Down payment: the cash you pay upfront, the rest of the price being borrowed. It is your starting equity in the home.
• Loan amount: the home price minus your down payment — the part you finance and pay interest on.
• PMI (private mortgage insurance): a monthly charge on conventional loans when you put down under 20%, protecting the lender against default.
• LTV (loan-to-value): the loan balance divided by the home value. A 20% down payment means an 80% LTV; PMI cancels as LTV falls to 80% (request) and 78% (automatic).
• Equity: the share of the home you own outright. Your down payment is your initial equity; it grows as you pay down principal and as values rise.
• Earnest money: a good-faith deposit made with your offer that is typically credited toward the down payment at closing — not an extra cost on top.

Limitations and assumptions

This calculator answers a focused question — how much you put down and what loan that leaves — so keep its boundaries in mind:

• It does not include closing costs, prepaid property tax and home insurance, or lender fees, all of which are owed in addition to the down payment.
• It flags whether PMI applies but does not estimate the PMI dollar amount or your monthly payment — use the Mortgage Calculator for that.
• The 20% PMI rule applies to conventional loans; FHA loans carry mortgage insurance differently and often for the life of the loan.
• Lender and program minimums can be higher than the figures shown, especially for second homes, investment properties or jumbo loans.
• It assumes the full down payment is your own (or gifted) cash and does not model down payment assistance second loans.

How it compares to related calculators

This page answers "how much do I put down, and what loan does that leave?" If your question is different, a sister tool fits better:

• To turn that loan into a full monthly payment with taxes, insurance and PMI, use the Mortgage Calculator.
• To estimate the cash due at signing beyond the down payment, use the Closing Cost Calculator.
• To find the maximum price your income supports, use the House Affordability Calculator.
• To dig into the PMI charge itself and when it drops off, use the PMI Calculator.

Sources

• Consumer Financial Protection Bureau (CFPB) — Owning a Home: down payments and mortgage basics.
• Consumer Financial Protection Bureau (CFPB) — What is private mortgage insurance (PMI)?
• U.S. Department of Housing and Urban Development (HUD) — Buying a Home (FHA and program down payment rules).
• Homeowners Protection Act of 1998 — federal PMI cancellation at 78%/80% LTV.