About the Down Payment Calculator
Your down payment shapes the whole loan: a larger one means a smaller mortgage, a lower monthly payment, and — at 20% — no private mortgage insurance (PMI). A smaller one gets you into a home sooner but costs more each month. This calculator lays 3%, 5%, 10%, and 20% side by side on the same home so you can weigh the trade-off.
How it’s calculated
For each down payment percentage: down payment = price × %, loan = price − down, monthly principal & interest uses the standard amortizing formula, and PMI (applied when down payment is under 20%) = loan × PMI rate ÷ 12. The table shows the total monthly cost for each.
Example calculation
On a $400,000 home at 6.5% over 30 years: 20% down ($80,000) gives a $320,000 loan at about $2,022/month with no PMI, while 5% down ($20,000) gives a $380,000 loan at roughly $2,400/month once PMI is added.
Frequently asked questions
Is 20% down required?
No. Many loans allow 3–5% down, and some programs less. Twenty percent is the threshold that avoids PMI and lowers your monthly cost, but it isn't a requirement to buy.
What is PMI and when does it stop?
Private mortgage insurance protects the lender when your down payment is under 20%. It's typically removed automatically once your balance reaches about 78% of the original value, or on request at 20% equity.
Is a bigger down payment always better?
It lowers your loan, payment, and interest, but ties up cash you might need for closing costs, repairs, or an emergency fund. Balance the monthly savings against keeping healthy reserves.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.