What is a down payment?

A down payment is the portion of the home purchase price you pay upfront out of pocket. The remaining balance is financed through a mortgage loan. For example, a 20% down payment on a $400,000 home means you pay $80,000 upfront and borrow $320,000.

How much down payment do I need to avoid PMI?

Most conventional loans require a down payment of at least 20% to avoid private mortgage insurance (PMI). If your down payment is less than 20%, lenders typically require PMI, which adds to your monthly payment. Once your equity reaches 20%, you can request to cancel PMI.

What is the minimum down payment required?

The minimum varies by loan type. Conventional loans typically require 3–5% down. FHA loans require as little as 3.5% if your credit score is 580 or above. VA and USDA loans may offer 0% down for qualifying borrowers. This calculator works for any percentage.

What is loan-to-value (LTV) ratio?

LTV is the ratio of the loan amount to the appraised home value, expressed as a percentage. An LTV of 80% means you are borrowing 80% of the home value, which corresponds to a 20% down payment. Lower LTV ratios generally qualify for better interest rates.

Should I put more money down to get a lower interest rate?

Often yes — a larger down payment reduces the lender's risk and can qualify you for a lower interest rate, saving money over the life of the loan. However, you should also keep adequate liquid savings for an emergency fund, closing costs, and moving expenses.

What are closing costs and how much are they?

Closing costs are fees paid at settlement that are separate from the down payment. They typically range from 2% to 5% of the loan amount and include appraisal fees, title insurance, loan origination fees, and prepaid property taxes and insurance. Budget for these in addition to your down payment.

Down Payment Calculator

Enter a home price and down payment percentage to instantly see the dollar amount needed, your loan size, and whether PMI applies.

Home Purchase Details

Home Price

Down Payment 20%

1% 25% 50%

Custom Percentage

Include Closing Costs

Results

Down Payment

$80,000

20% of home price

Mortgage Loan

$320,000

LTV: 80%

Total Cash Needed at Closing

Down Payment $80,000

Total Cash Required $80,000

Monthly Savings to Reach Goal

12 months

$6,667

24 months

$3,333

36 months

$2,222

Down Payment Comparison

Down %	Amount	Loan	LTV	PMI

Summary

The Down Payment Calculator helps home buyers quickly determine how much money they need upfront for a home purchase. Enter the home price and your target down payment percentage to see the exact dollar amount required, the resulting mortgage loan size, and whether private mortgage insurance (PMI) will apply. Use the comparison table to evaluate how different down payment percentages affect your loan and monthly costs.

How it works

Enter the home purchase price in the Home Price field.
Set your desired down payment percentage using the slider or preset buttons.
The calculator instantly shows your required down payment in dollars.
Review the resulting mortgage loan amount and loan-to-value (LTV) ratio.
Check the PMI status — PMI is typically required when LTV exceeds 80% (down payment below 20%).
Use the comparison table to see how 5%, 10%, 15%, and 20% down payments differ.

Use cases

Determining how much cash to save before buying a home.
Comparing down payment options to decide whether to wait and save more.
Understanding when you can avoid private mortgage insurance (PMI).
Calculating the mortgage loan size based on your available savings.
Planning a home purchase timeline based on monthly savings goals.
Evaluating the trade-off between a smaller down payment now versus a larger one later.
Helping first-time home buyers understand upfront purchase costs.
Estimating total cash needed including down payment and closing costs.

Frequently Asked Questions

Last updated: 2026-10-05 · Reviewed by Nham Vu