Down Payment Calculator -- How Much for a House?

Calculate Down Payment

A down payment calculator helps you figure out how much cash you need upfront to buy a home, what your resulting loan amount will be, and whether you'll need to pay PMI.

Examples

How Down Payments Work

A down payment is the portion of a home's purchase price that you pay upfront in cash. The remainder is financed through a mortgage loan.

The Formula

Down Payment = Home Price × (Percentage ÷ 100)

Loan Amount = Home Price − Down Payment

What Changes with the Down Payment Size

• Monthly payment: A larger down payment means borrowing less, which directly lowers your monthly mortgage payment.
• PMI: Down payments below 20% on conventional loans trigger PMI, typically 0.5–1% of the loan amount per year.
• Interest rate: Lenders often offer better rates to borrowers with larger down payments because they represent lower risk.
• Total interest paid: Borrowing less means paying less interest over the life of the loan. On a 30-year mortgage, even a small difference in loan amount compounds into thousands of dollars.
• Equity: Your down payment is your initial equity in the home. Higher starting equity provides a larger cushion against market downturns.

Minimum Down Payment by Loan Type

• Conventional loan: Typically 3–5% minimum
• FHA loan: 3.5% minimum with qualifying credit (580+ score)
• VA loan: 0% down for eligible veterans and service members
• USDA loan: 0% down for eligible rural and suburban properties

Requirements vary by lender and program. These are general guidelines, not guarantees.

Understanding PMI

Private Mortgage Insurance (PMI) protects the lender — not you — if you default on the loan. It is required on conventional mortgages when the down payment is less than 20%.

How Much Does PMI Cost?

PMI typically costs 0.5–1% of the loan amount per year, split into monthly payments. For a $350,000 loan at 0.7% annual PMI, that's about $204/month ($2,450/year).

When Does PMI Go Away?

• Automatic cancellation: Lenders must remove PMI when your loan balance reaches 78% of the original home value.
• Borrower request: You can request PMI removal when your balance reaches 80% of the original value, or if the home has appreciated enough that your equity exceeds 20%.

3% vs 20% Down — A Quick Comparison

On a $400,000 home:

• 3% down ($12,000): Loan of $388,000, PMI ~$226/mo, you need $68,000 more to eliminate PMI
• 20% down ($80,000): Loan of $320,000, no PMI, lower monthly payment, better rate

The tradeoff: putting 3% down gets you into the home sooner with $68,000 less cash upfront, but you pay PMI until you build 20% equity. Which is better depends on your financial situation, local market conditions, and how long you plan to stay.

What Is LTV (Loan-to-Value)?

LTV is the ratio of your loan amount to the home's value. It's calculated as:

LTV = (Loan Amount ÷ Home Value) × 100

A $360,000 loan on a $400,000 home gives an LTV of 90%. Lenders use LTV to assess risk:

• 80% or below: No PMI required, best rates available
• 80–90%: PMI required, moderate rates
• 90–97%: PMI required, higher rates, stricter qualification

Don't Forget Closing Costs

The down payment is not the only cash you need at closing. Closing costs typically add 2–5% of the home price and include:

• Appraisal fee ($300–$600)
• Title insurance and title search
• Lender origination fees
• Prepaid property taxes and homeowners insurance
• Recording fees and transfer taxes
• Attorney fees (required in some states)

On a $400,000 home, expect $8,000–$20,000 in closing costs in addition to your down payment.

Frequently Asked Questions

How much down payment do you need for a house?

Minimum requirements depend on the loan type. Conventional loans typically require 3–5% down. FHA loans allow 3.5% with qualifying credit. VA and USDA loans may require 0% down for eligible borrowers. However, putting down less than 20% usually means paying PMI, which adds to your monthly cost.

What is PMI and when is it required?

PMI (Private Mortgage Insurance) protects the lender if you default. It is required on conventional loans when the down payment is less than 20% of the home price. PMI typically costs 0.5–1% of the loan amount per year. It can be removed once you reach 20% equity.

Is it better to put 20% down on a house?

Putting 20% down avoids PMI, gives you lower monthly payments, and often qualifies you for better interest rates. However, it requires more cash upfront. If saving 20% would delay your purchase by years, a smaller down payment may make sense — the tradeoff is higher monthly costs.

How do I calculate my down payment?

Multiply the home price by the down payment percentage as a decimal. For example, 10% down on a $400,000 home: $400,000 × 0.10 = $40,000. Your loan amount is the remainder: $400,000 − $40,000 = $360,000.

What is LTV (Loan-to-Value) ratio?

LTV is the loan amount divided by the home's value. A $360,000 loan on a $400,000 home has an LTV of 90%. Lower LTV means less risk for the lender. An LTV of 80% or below (20% down) avoids PMI.

What other costs should I budget for besides the down payment?

Closing costs typically add 2–5% of the home price. These include appraisal fees, title insurance, lender fees, and prepaid items like property taxes and homeowners insurance. On a $400,000 home, expect $8,000–$20,000 in closing costs on top of your down payment.

Can I use gift money for a down payment?

Most loan programs allow gift funds for part or all of the down payment, but rules vary. Conventional loans typically require a gift letter and documentation. FHA loans allow 100% gift funds. Lenders may ask for bank statements showing the transfer.

Does this calculator store my financial data?

No. All calculations run entirely in your browser using JavaScript. No data is sent to any server.

For a deeper look at down payment strategies, trade-offs, and common mistakes, read our guide: How Down Payments Work — What You Actually Need to Buy a Home.

Related Tools

• Mortgage Calculator — calculate monthly mortgage payments with taxes and insurance
• Loan Amortization Schedule — see a month-by-month breakdown of principal vs. interest
• Savings Goal Calculator — figure out how long it will take to save for your down payment
• Compound Interest Calculator — see how your savings grow while you save for a down payment
• Debt Payoff Calculator — plan debt payoff before applying for a mortgage

Privacy & Limitations

• Client-side only. No data is sent to any server. No cookies, no tracking of values entered.
• PMI estimates are approximate. Actual PMI rates depend on credit score, loan type, LTV ratio, and lender. The 0.7% annual rate used here is a general estimate.
• Does not include closing costs. The down payment is only part of the cash needed at closing. Budget an additional 2–5% for closing costs.
• Not financial advice. This tool demonstrates how down payment math works. Consult a mortgage lender or financial professional for personalized guidance on your situation.

Down Payment Calculator FAQ