Down Payment Calculator
Calculate down payment amounts for different percentages and plan your savings
Calculate Down Payment
How to Use This Down Payment Calculator
- Enter the home price you're considering
- Input your target down payment percentage (3-25% typical range)
- Use quick-select buttons to compare common down payment amounts
- Click 'Calculate Down Payment' to see the dollar amount needed
- Review the comparison table showing different percentages side-by-side
- Check the savings timeline to see how long it takes to save at different rates
Example: For a $400,000 home with 10% down: you need $40,000 upfront, financing $360,000. At 5% down ($20,000), you'd finance $380,000 and need PMI of roughly $150-300/month. At 20% ($80,000), you skip PMI entirely and have a $320,000 loan.
Tip: Calculate the true cost of different down payment amounts by factoring in PMI. Putting 10% down instead of 20% might cost $200/month in PMI for 8+ years.
Why Use a Down Payment Calculator?
Your down payment size affects your loan amount, monthly payment, PMI requirement, and interest rate. Understanding the trade-offs helps you make the right choice for your situation.
- Calculate exactly how much cash you need for different home prices
- Compare PMI costs vs. saving longer for a larger down payment
- Determine how long it will take to save your target amount
- Understand the loan-to-value ratio and its impact on rates
- Evaluate whether to buy sooner with less down or wait to save more
- Plan a realistic timeline for your home purchase
Understanding Your Results
Down payment percentage affects more than just the upfront cash—it impacts your monthly payment, interest rate, and ongoing costs.
| Result | Meaning | Action |
|---|---|---|
| 3-5% down | Minimum conventional/FHA | Expect PMI of 0.5-1.5% annually; good for high-appreciation markets |
| 5-10% down | Low-moderate down | PMI required but lower than 3-5%; balance between savings and payment |
| 10-20% down | Moderate down payment | PMI required but approaching removal threshold; often sweet spot |
| 20%+ down | No PMI required | Lower monthly payment, better rates, immediate equity cushion |
Meaning: Minimum conventional/FHA
Action: Expect PMI of 0.5-1.5% annually; good for high-appreciation markets
Meaning: Low-moderate down
Action: PMI required but lower than 3-5%; balance between savings and payment
Meaning: Moderate down payment
Action: PMI required but approaching removal threshold; often sweet spot
Meaning: No PMI required
Action: Lower monthly payment, better rates, immediate equity cushion
Note: PMI typically costs 0.5-1% of the loan amount annually. On a $350,000 loan, that's $1,750-$3,500/year ($145-$290/month) until you reach 20% equity.
About Down Payment Calculator
Formula
Down Payment = Home Price × Down Payment Percentage Loan Amount = Home Price - Down Payment. LTV (Loan-to-Value) = Loan Amount / Home Price × 100. LTV above 80% typically requires PMI.
Current Standards: Minimum down payments in 2026: Conventional 3%, FHA 3.5% (580+ credit), VA 0%, USDA 0%. For jumbo loans (above $766,550 in most areas), expect 10-20% minimum. Credit scores below 580 require 10% minimum for FHA.
Frequently Asked Questions
Is 20% down really necessary?
No—it's a guideline, not a requirement. Many buyers purchase homes with 3-10% down. The trade-off is PMI, which adds $100-300/month on a typical home until you reach 20% equity. In markets where prices rise 5-10% annually, buying with 5% down and paying PMI might actually cost less than waiting 3 years to save 20% while prices increase. Run the numbers for your market.
What is PMI and how do I get rid of it?
Private Mortgage Insurance protects the lender (not you) if you default with less than 20% equity. PMI costs 0.5-1.5% of your loan annually. To remove it: request cancellation when your loan balance reaches 80% of the original purchase price, or when your equity reaches 20% based on current value (may require appraisal). By law, PMI automatically terminates at 78% LTV based on original amortization schedule.
Should I drain my savings for a larger down payment?
No. Keep 3-6 months of expenses as an emergency fund AFTER closing. Homeownership brings unexpected costs—HVAC failures, roof repairs, appliance replacements. A buyer who puts every dollar into the down payment and then can't handle a $5,000 repair is in trouble. Better to put 10% down with $20,000 in reserves than 20% down with $2,000 in savings.
Do larger down payments get better interest rates?
Yes, generally. Lenders offer better rates for lower LTV because there's less risk. You might see 0.125-0.25% rate improvement going from 5% down to 20% down. On a $350,000 loan, that 0.25% difference is about $50/month or $18,000 over 30 years. Combined with PMI savings, the total benefit of 20% down can be significant—but so is the opportunity cost of that extra cash.
What about down payment assistance programs?
Many state and local programs offer grants or low-interest loans for down payments, especially for first-time buyers, teachers, nurses, veterans, or low-to-moderate income households. Programs vary by location but can provide $5,000-$50,000+ toward your purchase. Search '[your state] down payment assistance' or ask your lender about options. Some programs have income limits or require homebuyer education courses.