Free Down Payment Calculator
How it works
Enter the home price and the down payment percentage you are considering. The calculator shows the down payment in dollars, the loan amount you would need, and your estimated monthly principal and interest payment at your rate and term. If you are below 20% down, it also shows exactly how much more you would need to reach the 20% threshold and avoid private mortgage insurance (PMI).
Down Payment Calculator
Down payment, loan amount, and monthly principal & interest — plus the road to 20%.
1 The home & your down payment
2 Loan terms
3 Calculate
🔑 Your down payment breakdown
The formula
The down payment is simply home price × down payment %, and the loan amount is the price minus that. Monthly principal and interest use the standard loan formula with monthly rate r = APR ÷ 100 ÷ 12 and n = years × 12: M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) (or P ÷ n at 0% interest). The “total home cost” note adds your down payment to every monthly payment across the full term — it excludes property taxes, homeowners insurance, PMI, and maintenance, which your lender will itemize separately.
Everyday uses
- Savings goal setting: turn “a house someday” into a concrete dollar target — 20% of the price range you are watching.
- Comparing percentages: see how 5% versus 10% versus 20% down changes both the monthly payment and the total interest.
- Offer readiness: check what different price points demand upfront before you start touring homes.
- PMI trade-off analysis: weigh buying sooner with PMI against waiting to reach 20% while prices and rates move.
Frequently asked questions
Why does 20% down matter so much?
On a conventional loan, putting down less than 20% usually means paying for private mortgage insurance (PMI), which protects the lender, not you. It commonly adds 0.5–1% of the loan amount per year to your costs until you reach about 20–22% equity and can have it removed.
Can I buy a home with less than 20% down?
Yes — many buyers do. Conventional loans can start around 3% down, FHA loans at 3.5%, and VA and USDA loans can be 0% for eligible buyers. A smaller down payment means a bigger loan, a higher monthly payment, and usually PMI or similar fees, so compare the full picture here before deciding.
Is a bigger down payment always better?
Not automatically. It lowers your payment and total interest and removes PMI, but it also ties up cash you might need for closing costs, moving, repairs, or an emergency fund — and money not put down could be invested instead. The right amount balances a comfortable payment against keeping healthy reserves.