Down Payment Calculator

How it works

Your down payment is simply a share of the purchase price, and whatever is left becomes the loan. The percentage matters beyond the dollar amount, because 20% is the usual threshold for avoiding private mortgage insurance:

With the defaults above, 20% down on a $400,000 home is $80,000, leaving a $320,000 loan. Because that is a full 20%, there is no PMI. Put 10% down instead and the down payment is $40,000, the loan rises to $360,000, and you would carry mortgage insurance until your equity reaches 20%.

✓ Every result is checked against independent reference math. See how we test the calculators →

A worked example: $400,000 home, 20% down

A first-time buyer eyeing a $400,000 house plans to put 20% down. The calculator sets the down payment at $80,000, which leaves a $320,000 loan for the bank to cover. That 20% mark matters: hit it and you skip private mortgage insurance entirely, so there's no extra monthly premium tacked onto your payment.

The breakdown is clean. Your $400,000 price minus the $80,000 you bring to closing gives the $320,000 loan amount, and mortgage insurance reads as not required. Every dollar of that down payment is equity you own from day one.

Drop to 5% down and the picture shifts. That same house needs only $20,000 up front, a $60,000 difference from the 20% plan. The smaller number is easier to reach, but you'd carry a bigger loan and pay insurance until you build equity.

Plug in your own price and target to see where you land.

How much to put down

• 20% avoids PMI. Reaching a fifth of the price removes private mortgage insurance and shrinks the loan, lowering both risk and monthly cost.
• Less down is not wrong. Many buyers put 3% to 10% down to buy sooner and keep cash in reserve. PMI is the price of that, and it can be removed later as equity grows.
• Keep a cushion. Do not drain every dollar into the down payment. Closing costs, moving, and an emergency fund all deserve a share of your savings.

PMI and how to shed it

Put less than 20% down on a conventional loan and you will usually pay private mortgage insurance, an extra monthly charge that protects the lender if you default. It does nothing for you directly, so getting rid of it is a common early goal. The good news is that PMI is not permanent, and there are clear points at which it comes off.

• Request it at 80%. Once your balance falls to 80% of the original value, you can ask the lender to cancel PMI, based on paydown or a new appraisal.
• Automatic at 78%. Lenders are generally required to remove PMI on their own once your scheduled balance reaches 78% of the original value.
• Appreciation counts. A rising home value can get you to 20% equity faster than the payment schedule alone, though you may need an appraisal to prove it.
• FHA is different. Loans backed by the FHA carry their own mortgage insurance that can be harder to cancel, so a refinance is sometimes the way to shed it.

Low down payment options

Twenty percent is the threshold that avoids PMI, but it is far from a requirement to buy. A range of loan programs exist precisely so buyers can get in with much less, trading a smaller upfront sum for mortgage insurance or a slightly different cost structure, so it is worth comparing a few before assuming you have to wait.

• Conventional low-down loans. Many allow as little as 3% to 5% down, with PMI that falls away once you reach 20% equity.
• Government-backed loans. Programs such as FHA, VA, and USDA loans let qualified buyers put down very little, sometimes nothing, in exchange for their own insurance or fees.
• The trade-off. A smaller down payment means a larger loan, a higher payment, and more interest over time, so weigh buying sooner against the added long-run cost.
• Shop the total cost. Low down payment loans vary in rate and insurance, so compare the full monthly payment across options, not just the cash to close.

Saving for the down payment

A down payment is usually the biggest cash hurdle to buying, so where you keep the money and how you build it deserve some thought. Because the timeline is often short, the priority is safety and access rather than chasing returns, and there are a few sources beyond your own savings worth knowing about. Treat it as a project with a target number and a deadline, and the sum feels far less daunting.

• Keep it safe and liquid. Money you will need within a couple of years belongs somewhere stable, not in investments that could drop right before closing.
• Gift funds. Many loan programs let a family member gift part or all of the down payment, provided it is documented with a gift letter.
• Budget beyond the down payment. Closing costs typically run another 2% to 5% of the price, so save for those on top rather than draining every dollar.
• Automate it. A standing transfer into a dedicated account each payday turns a daunting lump sum into a series of small, steady steps.