Down Payment Calculator
Work out the down payment you need, and how it changes your loan and PMI.
About Down Payment Calculator
Your down payment percentage determines your loan-to-value ratio (LTV). Conventional lenders require private mortgage insurance (PMI) whenever LTV exceeds 80%, because a smaller equity cushion raises the lender's risk. PMI typically costs 0.5–1.5% of the loan amount per year and is added to your monthly payment until the loan balance falls to 80% of the original purchase price. Putting 20% down eliminates this cost entirely.
Formulas
Loan-to-value ratio
LTV = Loan Amount ÷ Home Price × 100
Monthly PMI
Monthly PMI = Loan Amount × Annual PMI Rate % ÷ 1200
Worked example
With the default values below, Down Payment Calculator returns Down Payment of $80,000. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Home Priceaccepts 10,000–10,000,000 $
- 400,000 $
- Specify down payment asone of Dollar amount, Percentage
- Dollar amount
- Down Payment Amountaccepts 0–5,000,000 $
- 80,000 $
- Down Payment Percentageaccepts 0–100 %
- 20 %
- Annual Interest Rateaccepts 0–20 %
- 6.5 %
- Loan Termaccepts 5–40 years
- 30 years
- Annual PMI Rateaccepts 0.1–3 %
- 0.8 %
- Closing Costsaccepts 0–10 % of home price
- 2 % of home price
Results
- Down Payment
- $80,000
- Down Payment %
- 20.00%
- Loan Amount
- $320,000
- Loan-to-Value (LTV)
- 80.00%
- PMI Required
- false
- Monthly P&I Payment
- $2,022.62
- Monthly PMI
- $0.00
- Total Monthly Payment
- $2,022.62
- Estimated Closing Costs
- $8,000
- Total Cash Needed at Closing
- $88,000
- PMI Drops AfterMonth when scheduled payments bring LTV to 80% and you can request PMI cancellation.
- 0 months
- Total PMI Cost Until Cancellation
- $0
- Extra Down Payment to Avoid PMIAdditional upfront amount needed to reach 20% down and eliminate PMI.
- $0
Step by step
- 1Home price= $400,000
- 2Down payment= $80,000 (20.00%)
- 3Loan amount= $320,000
- 4Loan-to-value ratio= 80.00%LTV ≤ 80% — no PMI required.
- 5Monthly P&I payment= $2,022.62
- 6Monthly PMI= $0 (not required)
- 7Total upfront (down payment + closing costs)= $88,000
Assumptions and limits
- The result is derived only from the 8 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation or tax into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- PMI rates are estimates. Actual PMI depends on credit score, lender and program. Closing cost estimates vary widely by state and transaction type.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
PMI rates are estimates. Actual PMI depends on credit score, lender and program. Closing cost estimates vary widely by state and transaction type.
Frequently Asked Questions
What is the minimum down payment for a conventional loan?
Fannie Mae and Freddie Mac allow as little as 3% down for qualified first-time buyers. However, you will pay PMI on any conventional loan with less than 20% down, which adds meaningfully to your monthly cost.
How do I get PMI removed?
Under the Homeowners Protection Act, you can request PMI cancellation when your LTV reaches 80% based on the original purchase price and scheduled payments. Lenders must automatically cancel it at 78% LTV. You may also request earlier cancellation if your home has appreciated substantially.
Is a larger down payment always better?
A larger down payment reduces your loan, lowers your rate (slightly), eliminates PMI below 20%, and builds equity faster. But it also reduces your liquid cash reserves — which matter for repairs, job loss and emergencies. Many financial planners recommend maintaining 3–6 months of expenses as an emergency fund even after closing.
Does FHA have different rules?
FHA requires only 3.5% down (with a 580+ credit score) but charges its own Mortgage Insurance Premium (MIP) regardless of LTV. Unlike conventional PMI, FHA MIP typically stays for the life of the loan if the down payment is under 10%. Use the FHA Loan Calculator for details.