🏡 Down Payment Calculator
Work out the down payment and loan amount for a home, and whether you’ll need mortgage insurance.
Quick answer: Down payment = home price × down payment % ÷ 100. On a $400,000 home, 10% down is $40,000.00, leaving a $360,000.00 mortgage – and because it is under 20%, a conventional loan will usually require PMI.
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Down Payment Calculator inputs
Result
Down payment
$40,000.00
10% of a $400,000.00 home
| Home price | $400,000.00 |
| Down payment | −$40,000.00 |
| Mortgage amount | $360,000.00 |
- Loan-to-value
- 90%
- Mortgage insurance (PMI)
- Likely required
With less than 20% down, conventional lenders usually charge private mortgage insurance until the balance falls to 80% of the home’s value. You would need $40,000.00 more to reach 20%.
Down payment options on $400,000.00
| Down payment | Amount | Loan amount | PMI? |
|---|---|---|---|
| 3% | $12,000.00 | $388,000.00 | Yes |
| 3.5% | $14,000.00 | $386,000.00 | Yes |
| 5% | $20,000.00 | $380,000.00 | Yes |
| 10% | $40,000.00 | $360,000.00 | Yes |
| 15% | $60,000.00 | $340,000.00 | Yes |
| 20% | $80,000.00 | $320,000.00 | No |
| 25% | $100,000.00 | $300,000.00 | No |
How to calculate a down payment
The down payment is the share of the purchase price you pay up front in cash. The rest is borrowed as a mortgage, so a bigger down payment means a smaller loan, less interest and often a better rate.
Down payment = Home price × Down % ÷ 100 · Loan amount = Home price − Down payment · LTV = Loan ÷ Price × 100
Example: a $400,000 home with 10% down → down payment $40,000.00, mortgage $360,000.00, loan-to-value 90%. PMI would normally apply until the loan is paid down to 80% of the home’s value.
Minimum down payments by loan type (US)
| Loan type | Minimum down | Mortgage insurance |
|---|---|---|
| Conventional | 3%–5% | PMI below 20% down; removable |
| FHA | 3.5% (credit score 580+) | Upfront and annual MIP |
| VA | 0% | None, but a funding fee |
| USDA | 0% | Guarantee fee |
| Jumbo | Often 10%–20% | Varies by lender |
Tips for saving a down payment
- Set a target and automate a monthly transfer to a high-yield savings account.
- Look for state and local down payment assistance programmes for first-time buyers.
- Gift funds from family are usually allowed but need a signed gift letter.
- Keep enough aside for closing costs and an emergency fund – do not empty your savings on the down payment alone.
- Run the mortgage payment at each down payment level to see which monthly cost you are comfortable with.
A larger down payment also gives you a buffer if prices fall: with 20% equity you are far less likely to owe more than the home is worth if you need to sell in the first few years.
Estimates for educational purposes, not financial or tax advice.
Frequently asked questions
How much should I put down on a house?
Putting 20% down avoids private mortgage insurance on a conventional loan and lowers your monthly payment, but many buyers put down less. Conventional loans allow as little as 3%, FHA loans 3.5% and VA and USDA loans 0% for eligible borrowers.
What is PMI and how much does it cost?
Private mortgage insurance protects the lender if you default on a conventional loan with less than 20% down. It typically costs about 0.3%–1.5% of the loan amount a year, and you can ask to cancel it once you reach 20% equity.
Is it better to put 20% down or invest the money?
It depends on your mortgage rate, PMI cost, emergency savings and investment returns. Keeping a healthy emergency fund matters more than reaching exactly 20%.
What else do I need cash for besides the down payment?
Closing costs, often 2–5% of the purchase price, plus moving costs and a cash reserve for repairs. Some lenders also require a few months of mortgage payments in reserve.