Down Payment Calculator
Adjust the inputs below. Results update as you type.
How it works
Conventional loans require 3–20% down; less than 20% triggers private mortgage insurance (PMI), adding 0.5–1.5% annually to your cost. FHA requires 3.5% with a 580+ credit score. VA and USDA loans offer 0% down for eligible borrowers. A larger down payment lowers your monthly payment, eliminates PMI sooner, and reduces lifetime interest. Factor in closing costs (2–5% of loan).
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
Down payment = home price × down payment percent. The loan amount is the price minus the down payment; 20% down typically avoids private mortgage insurance.
Worked example
On a $350,000 home, 20% down is $70,000, leaving a $280,000 loan. At 10% down ($35,000), you borrow $315,000 and usually pay PMI until you reach 20% equity.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
Frequently asked questions
Why aim for 20% down?+
A 20% down payment usually removes private mortgage insurance, lowers the loan amount, and can secure a better interest rate.
Can I buy with less than 20%?+
Yes. Many conventional loans allow 3–5% down, and FHA allows 3.5%, but expect mortgage insurance until you build enough equity.
What counts toward a down payment?+
Savings, gift funds, and certain assistance programs. Lenders verify the source, so document where the money comes from.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.
Guided next steps
Want the full workflow? Use this calculator inside a step-by-step guide.