This down payment calculator shows how much cash you need up front for a home: enter the price and down-payment percentage to see the down payment, the loan amount, and the estimated monthly principal-and-interest payment — including what changes below the 20% PMI line.
What Is a Down Payment?
A down payment is the portion of a home’s price you pay in cash at purchase; the mortgage covers the rest. It is quoted as a percentage of the price — 20% of a $400,000 home is $80,000 down and a $320,000 loan. The down payment size decides your loan type eligibility, your interest rate tier, and whether you pay mortgage insurance. This calculator is part of our Finance Calculators collection; the loan side is modeled in full by our Mortgage Calculator.
Down Payment Examples (Verified)
| Home price | Down % | Down payment | Loan |
|---|---|---|---|
| $400,000 | 20% | $80,000 | $320,000 |
| $400,000 | 10% | $40,000 | $360,000 |
| $400,000 | 3.5% (FHA) | $14,000 | $386,000 |
| $650,000 | 20% | $130,000 | $520,000 |
| $250,000 | 5% | $12,500 | $237,500 |
How Much Do You Actually Need?
- 20%: the classic conventional target — no PMI, best rates, lower payment.
- 3–5%: minimums on many conventional loans for qualified buyers; PMI applies until ~20% equity.
- 3.5%: FHA loans, with their own mortgage insurance rules.
- 0%: VA and USDA loans for eligible buyers.
- Beyond the down payment: closing costs run 2–5% of the price, and you will want reserves after moving in. A bigger down payment that empties your emergency fund is not a win.
Every extra dollar down reduces the loan — and because interest compounds on the balance, it also shrinks total interest by more than a dollar over 30 years. That is the same leverage the Mortgage Payoff Calculator shows after purchase: principal paid early is interest never charged.
Bigger vs. Smaller Down Payment — the Trade-Off
- Bigger: lower payment, no PMI, less total interest, instant equity cushion — but less cash left invested or liquid.
- Smaller: buy sooner, keep cash reserves and investment flexibility — at the cost of PMI, higher payments, and more lifetime interest.
- There is no universal right answer; there is only the answer that fits your cash position, how long you will stay, and what the money would otherwise do.
Related Tools
- Mortgage Calculator — payments on the loan itself
- Mortgage Payoff Calculator — extra payments later
- Finance Calculators — the full collection
Frequently Asked Questions
What is the average down payment in the US?
Recent medians run roughly 10–15% overall, lower for first-time buyers (often 6–9%) and higher for repeat buyers — 20% is a target, not the norm.
What is PMI and when does it go away?
Private mortgage insurance protects the lender on conventional loans with under 20% down. It typically costs 0.3–1.5% of the loan amount per year and can be removed once you reach 20% equity (and automatically terminates at 22%).
Can I put less than 20% down?
Yes — most buyers do. Conventional loans go as low as 3%, FHA 3.5%, and VA/USDA loans allow 0% for eligible borrowers. The calculator shows the payment impact at any percentage.
Does a larger down payment lower my rate?
Often slightly — larger down payments mean lower lender risk and can unlock better rate tiers, on top of the smaller balance itself.
Should I empty my savings for 20% down?
Usually not — you still face closing costs, moving expenses and life. Many financial planners prefer a smaller down payment with a healthy reserve over 20% down and an empty account.
Is this down payment calculator free?
Yes — free, instant, no sign-up. Estimates only; confirm exact fees and PMI with your lender.