Finance
Down Payment Calculator
Your down payment is price × percent — for a $400,000 home at 10%, that is $40,000. Enter a price and a percent (or the cash you have) to see the down payment, the loan amount, whether PMI applies, and the total cash to close.
Home & down payment
The purchase price of the home
$
$40,000 down · 10.0% of the price
%
The annual mortgage rate, for the estimated payment
%
Years to repay — 30 and 15 are the common choices
years
Percent of price you also pay at closing — typically 2–5%
%
Down payment
$40,000
10.0% down · $360,000 loan · 90% LTV
Loan amount
$360,000
Est. payment (P&I)
$2,275.44
Closing costs
$12,000
Cash to close
$52,000
Under 20% — PMI applies
You are $40,000 short of the $80,000 a 20% down payment takes. Reaching it removes private mortgage insurance.
Estimate only. Your actual down payment, PMI and closing costs depend on your lender, loan program and location.
Try a scenario
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The basics
What is a down payment?
A down payment is the cash you pay up front toward the price of a home. The rest is the loan. Two ideas explain everything the figure decides.
down = price × percent
It sets the size of your loan
Every dollar you put down is a dollar you do not borrow. A bigger down payment means a smaller loan, a lower monthly payment, and less interest over the life of the mortgage.
$400,000 at 10% down = $40,000 down, $360,000 borrowed
20% removes PMI
It decides whether you pay PMI
On a conventional loan, a down payment under 20% carries private mortgage insurance until you reach 20% equity. Hitting the 20% line at closing skips it entirely — often the difference between the two most common down payments people compare.
20% of $400,000 = $80,000 → no PMI
Method
How to calculate a down payment by hand
Four steps take you from a price and a percent to the cash you actually need.
- 1
Pick the price and the percent
Start with the purchase price P and the down-payment share d you plan to put down — 3%, 5%, 10% or 20% are the common choices.
price $400,000 · down 10% - 2
Multiply to the dollar down payment
The down payment in dollars is simply the price times the percent. Going the other way, divide a dollar amount by the price to get the percent it covers.
$400,000 × 10% = $40,000 - 3
Subtract for the loan amount
The loan is the price minus the down payment. The loan divided by the price is the loan-to-value ratio the lender prices against.
$400,000 − $40,000 = $360,000 (90% LTV) - 4
Check the 20% line, then add closing costs
Under 20% means PMI; 20% or more means none. Then add closing costs — 2% to 5% of the price — for the total cash you actually bring to the table.
+ closing $12,000 = $52,000 cash to close
Worked examples
The same home at different percents
A $400,000 home at 6.50% over 30 years. As the percent rises, the loan, the payment and PMI all fall.
| Down | Down payment | Loan amount | Est. payment (P&I) | PMI? |
|---|---|---|---|---|
| 3% | $12,000 | $388,000 | $2,452.42 | Yes |
| 5% | $20,000 | $380,000 | $2,401.86 | Yes |
| 10% | $40,000 | $360,000 | $2,275.44 | Yes |
| 15% | $60,000 | $340,000 | $2,149.03 | Yes |
| 20% | $80,000 | $320,000 | $2,022.62 | No |
Where it shows up
Why the number matters
Three moments where the down payment is the figure that decides things.
the 20% line
Avoiding PMI
The single most-searched down-payment question. Reaching 20% removes a premium that can run hundreds of dollars a month on a conventional loan.
20% down = no private mortgage insurance
program minimums
Qualifying for a loan
Each loan program has a floor. Knowing the minimum tells you the smallest down payment that opens the door — and which program fits your savings.
FHA 3.5% · Conventional 3% · VA 0%
cash to close
Budgeting the cash
The down payment is not the only cash due. Adding closing costs shows the real amount you must have in the bank on closing day.
Down payment + 2–5% closing costs
Reference
Minimum down payment by loan program
General guidance, not a rate quote. Each program sets its own floor and its own mortgage-insurance rule. Twenty percent is the line where PMI disappears on a conventional loan.
| Program | Minimum down | Mortgage insurance | What it means |
|---|---|---|---|
| VA loan | 0% | None (funding fee) | For eligible veterans and service members. No down payment and no PMI, but a one-time funding fee applies. |
| USDA loan | 0% | Guarantee fee | For eligible rural and suburban buyers under income limits. No down payment; a small annual guarantee fee stands in for PMI. |
| FHA loan | 3.5% | MIP, usually for the life of the loan | Backed by the FHA, friendlier to lower credit scores. Charges mortgage insurance (MIP) that often lasts the whole loan. |
| Conventional | 3% | PMI until 20% equity | The standard loan. As little as 3% down for first-time buyers; PMI drops off once the balance reaches 80% of the price. |
| Conventional, 20% down | 20% | None | The threshold where PMI never applies. The strongest pricing tier and the smallest loan. |
Worth knowing
Five things about the down payment
None of these are in the headline percent, and each can be worth real money.
keep a cushion
Do not drain your savings
Putting every dollar down leaves nothing for repairs, moving costs or an emergency. Many buyers stop at the PMI line or a program minimum and keep a reserve.
gifts are allowed
Gift funds count
Most programs let family gift some or all of the down payment, with a signed gift letter. It is a common way first-time buyers reach a bigger down payment.
assistance exists
Down-payment help
State housing agencies and cities run grants and low-interest second loans for the down payment, often aimed at first-time and lower-income buyers.
earnest money counts
Earnest money is credited
The deposit you make with your offer — earnest money — is applied toward the down payment or closing costs at closing, not paid on top.
LTV prices the loan
Loan-to-value drives pricing
Lenders price by loan-to-value ratio. A lower LTV — a bigger down payment — can earn a slightly better rate on top of removing PMI.
20% is not required
You need not put 20% down
Twenty percent avoids PMI, but it is not a requirement to buy. Millions of buyers use 3–5% down and simply pay PMI until they reach 20% equity.
Quick chart
Down payment by price and percent
Read the dollar down payment for common home prices at each percent. The 20% column is the amount that avoids PMI.
| Price | 3% | 3.5% | 5% | 10% | 15% | 20% | 25% |
|---|---|---|---|---|---|---|---|
| $200,000 | $6,000 | $7,000 | $10,000 | $20,000 | $30,000 | $40,000 | $50,000 |
| $300,000 | $9,000 | $10,500 | $15,000 | $30,000 | $45,000 | $60,000 | $75,000 |
| $400,000 | $12,000 | $14,000 | $20,000 | $40,000 | $60,000 | $80,000 | $100,000 |
| $500,000 | $15,000 | $17,500 | $25,000 | $50,000 | $75,000 | $100,000 | $125,000 |
| $600,000 | $18,000 | $21,000 | $30,000 | $60,000 | $90,000 | $120,000 | $150,000 |
| $750,000 | $22,500 | $26,250 | $37,500 | $75,000 | $112,500 | $150,000 | $187,500 |
Down payment = price × percent. The 20% column is the figure that avoids PMI.
How we calculate this
The formula and our assumptions
The down payment is plain arithmetic; the estimated payment uses the standard loan formula.
down = price × percent
The down payment
The dollar down payment is the price times the percent. The loan is the price minus the down payment, and loan ÷ price is the loan-to-value ratio (LTV) the lender prices against.
M = P·i ÷ (1 − (1 + i)^−n)
The estimated payment
The monthly principal and interest use the standard amortizing-loan formula on the loan amount, where i is the annual rate over twelve and n the number of payments. It excludes tax, insurance and PMI.
- PMI is treated as applying whenever the down payment is under 20% of the price (conventional-loan rule).
- Closing costs are estimated as a flat percent of the price; real closing costs are itemised by the lender.
- The estimated payment is principal and interest only — add tax, insurance and PMI for the full payment.
Where to get a mortgage
Where to shop for the loan
Rows are ordered by borrower fit, not by any payout. Rates are shown as ranges only; get an exact quote from the lender, because pricing depends on your credit, the property and the day.
| Where | Examples | Best for | Typical pricing |
|---|---|---|---|
| Online marketplace | LendingTree, Credible | Comparing several lenders from one form | Market range |
| Direct lender / bank | Rocket, Chase, local banks | An existing banking relationship | Market range |
| Credit union | Member-owned lenders | Lower fees, member pricing | Often below market |
| Down-payment assistance | State HFAs, city programs | First-time and lower-income buyers | Grants / second liens |
CalculateThis.io is not a lender and does not make credit decisions. When we add lender links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the rate you are offered.
Sources
Where the method comes from
- Consumer Financial Protection Bureau — down payments, PMI and closing costs.
- FHA, VA and USDA loan-program minimum down-payment rules.
- Homeowners Protection Act (HPA) — the 80%/78% PMI cancellation thresholds.
FAQ
Common questions
Multiply the home price by the down-payment percent: down payment = price × percent. On a $400,000 home at 10% that is $40,000, leaving a $360,000 loan. Going the other way, divide the cash you have by the price to see the percent it covers — $80,000 on the same home is 20% down.
Twenty percent of $400,000 is $80,000, which leaves a $320,000 loan. Twenty percent is the line that matters: at or above it, no private mortgage insurance (PMI) is charged. The quick chart on this page gives the down payment for every price and percent.
Less than you might think. Conventional loans start at 3% down, FHA loans at 3.5%, and VA and USDA loans at 0% for eligible buyers. A $400,000 home can be bought with as little as $12,000 down on a conventional loan. The trade-off is PMI and a larger loan — a bigger down payment lowers both.
PMI — private mortgage insurance — is charged on conventional loans whenever the down payment is under 20%. It protects the lender, not you, and is dropped once the balance reaches 80% of the price. A down payment of 20% or more avoids it entirely. On the $400,000 example, 20% down ($80,000) means no PMI.
No. On top of the down payment you pay closing costs — lender fees, title, appraisal and prepaid taxes and insurance — usually 2% to 5% of the price. At 3% of a $400,000 home that is $12,000, so the total cash to close with 10% down is about $52,000. This calculator adds both so you see the real amount to bring.
A bigger down payment lowers your loan, your monthly payment, and the interest you pay over the life of the loan, and past 20% it removes PMI. But draining every dollar of savings into a down payment can leave you with no emergency fund or cash for repairs. Many buyers put down enough to clear PMI or hit a program minimum, and keep a cushion.
It can. Lenders price risk by loan-to-value ratio (LTV): a lower LTV — a bigger down payment — often earns a slightly better rate, and it always removes the PMI premium below 20%. The effect on the rate itself is usually small; the bigger savings come from borrowing less and skipping PMI.
Set the target in dollars: 20% of your price. On a $400,000 home that is $80,000. Then work back from your timeline — the gap divided by the months you have is the monthly saving needed. Down-payment assistance programs, gifts from family, and first-time-buyer grants can also close the gap.
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Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
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