Down Payment Calculator: How Much Do You Need to Buy a Home?
Down payment calculator
See how much cash you need for a down payment at any percentage, the loan amount you’d be left with, and whether you’d need to pay PMI. Compare common down payment levels side by side.
- Free to use
- No sign-up
- PMI threshold built in
Your numbers
Compare common down payments
| Down payment | Cash needed | Loan amount | PMI |
|---|
How this calculator works
Your down payment is simply the home price multiplied by the percentage you choose. The loan amount is what’s left over — the price minus your down payment.
Private mortgage insurance (PMI) is generally required when your down payment is below 20% of the price, so any row under 20% in the table is flagged. A larger down payment lowers your loan, your monthly payment, and removes PMI once you reach the 20% mark.
Frequently asked questions
How much down payment do I really need?
Many conventional loans allow as little as 3%, and some government-backed loans require 0–3.5%. A 20% down payment avoids PMI and lowers your monthly payment, but it isn’t required to buy.
What is PMI and how do I avoid it?
PMI is private mortgage insurance that protects the lender when your down payment is under 20%. Avoid it by putting down 20% or more; on most loans it falls off automatically once you reach 20% equity.
Can I get help with my down payment?
Yes. Many state and local programs offer down payment assistance for first-time and lower-income buyers. See our down payment assistance guide for details.
Estimates only and not financial advice. Loan program requirements and PMI rules vary by lender.
Your upfront costs can change depending on the assistance available to you. To understand first-time homebuyer programs and how the program types work before buying, explore our overview.
Disclaimer: The Housing Signal is an independent educational publisher. We are not a mortgage broker, lender, or licensed financial advisor, and nothing here is personalized financial advice. Calculator results are estimates based on the figures you enter and the assumptions published alongside each tool; they are not a quote, a pre-approval, or an offer of credit. Rates, programs, costs and market conditions change frequently, and national figures may not reflect your local market or your own circumstances. Figures cited are accurate as of the dates given and will change. Consult a licensed professional before making a decision.
Take your numbers to an open house, broker, or bank appointment. In the print dialog, choose “Save as PDF.”
How Down Payment Size Changes Your Loan
A down payment does three things at once: it shrinks the loan, it sets your loan-to-value tier (which influences the rate you are offered), and at 20% it removes private mortgage insurance entirely. Twenty percent is a pricing threshold, not a legal requirement — conventional loans start at 3% and VA and USDA loans allow 0%. The calculator above shows the trade-off; here is how each piece is computed.
How to calculate your down payment and cash to close (step by step)
- Start with the purchase price. Every figure below scales from it.
- Choose a percentage and convert it to dollars. Price × percentage → down payment. Price − down payment → your loan amount.
- Check the minimum for your loan type. Conventional allows 3% down, FHA requires 3.5% with a 580 credit score (10% below that), and VA and USDA loans allow 0% for eligible borrowers.
- Add PMI if you are under 20% on a conventional loan. Typically 0.2%–2% of the loan annually ÷ 12. The premium falls as your loan-to-value improves.
- Add closing costs to get true cash to close. Roughly 2–5% of the purchase price, due at closing on top of the down payment — the number most first-time buyers miss.
A worked example you can verify by hand
On a $400,000 home at 6.58% over 30 years (Freddie Mac PMMS, week ending July 23, 2026), the payment factor is 0.0063734 per dollar borrowed. At 3% down you put in $12,000, borrow $388,000, and pay about $2,473 in principal and interest plus roughly $178 in PMI — $2,651 a month. At 10% down you put in $40,000, borrow $360,000, and pay about $2,294 plus roughly $105 in PMI — $2,399. At 20% down you put in $80,000, borrow $320,000, and pay $2,039 with no PMI at all. The jump from 3% to 20% costs $68,000 more upfront and saves about $612 every month — roughly a nine-year payback before considering what that $68,000 could have earned elsewhere. Add $8,000–$20,000 in closing costs to each scenario.
How much is a 20% down payment on a $400,000 house?
A 20% down payment on a $400,000 home is $80,000, leaving a $320,000 loan. At 6.58% over 30 years that is about $2,039 a month in principal and interest, with no PMI. Closing costs of roughly 2–5% — another $8,000 to $20,000 — are due separately at closing.
When does PMI come off a conventional loan automatically?
Under the federal Homeowners Protection Act, your servicer must automatically cancel PMI when the loan balance reaches 78% of the home’s original value, based on the original amortization schedule and a current payment history. You can request cancellation earlier at 80%. FHA mortgage insurance follows different rules and often lasts the full loan term.
Does a bigger down payment lower your mortgage rate?
Often, modestly. Conventional pricing uses loan-to-value tiers, so moving from 5% down to 10%, 15%, or 20% can drop your rate slightly and removes PMI at 20%. The larger effect is on the payment itself: a smaller loan costs less every month regardless of rate.
PMI cancellation thresholds: Homeowners Protection Act of 1998, per Consumer Financial Protection Bureau guidance (as of July 2026). Loan-type minimums reflect standard agency and lender requirements; individual lenders may impose stricter overlays.
Before you run your numbers
If the gap between 3% and 20% is the obstacle, start with our guide to down payment assistance programs and the broader landscape of first-time homebuyer programs. To see how each scenario changes the full monthly payment, run it through our mortgage payment calculator. And because your score sets the rate tier that multiplies against whatever you borrow, see how to improve your credit score for a mortgage.