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Down Payment Calculator

Compare down payment percentages, loan amount, loan-to-value, and estimated PMI for a specific home price. Built for choosing 3%, 5%, 10%, or 20% down scenarios.

Down Payment Impact on EMI and PMI

BrainyCalculators editorial insight — unique to this tool

US conventional loans under 20% down typically require PMI (~0.5–1% of loan annually) until 80% LTV. Indian home loans often accept 10–20% down with LTV capped at 80–90% by RBI guidelines. Larger down payment reduces EMI nonlinearly — 20% vs 10% on a $400K home saves tens of thousands in interest over 30 years.

When to use this calculator

Use to compare down payment percentages before purchase. For maximum affordable price, use House Affordability.

Need to know your maximum affordable home price?

This page compares down payment, loan amount, and PMI. For income, debt, tax, insurance, and 28/36 affordability limits, use the House Affordability Calculator →

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What is a Down Payment Calculator?

A down payment calculator isolates the upfront cash decision in a home purchase: how much you put down, how much you borrow, and whether the loan-to-value ratio triggers PMI. It is centered on a known home price and compares preset down payment scenarios such as 3%, 5%, 10%, and 20%.

Use this page when you already have a target property price and want to compare cash required at closing, loan amount, PMI exposure, and equity. It does not decide the maximum house price your full income and debt profile can support.

For the broader affordability question - income, debt, taxes, insurance, and 28/36 DTI limits - use the House Affordability Calculator. This page answers the down-payment trade-off after a price is chosen.

PMI Cost Formula

Monthly PMI = Loan Amount × 0.005 ÷ 12
Annual PMI range = 0.5% – 1.5% of loan amount
PMI removed when = equity reaches 20% of home value

PMI rates vary by lender, credit score, and loan type. The 0.5% annual rate used here is a conservative estimate. Your actual PMI may be higher. PMI is automatically cancelled once your loan balance drops to 78% of the original home value on conforming loans.

How to Use the Down Payment Calculator

  1. 1
    Enter the Home Price
    Type the purchase price of the home you are considering. All calculations are based on this figure.
  2. 2
    Set Your Down Payment
    Use the slider, click a quick-select preset (3%, 5%, 10%, 20%), or type a dollar amount directly. The percentage and dollar fields stay in sync automatically.
  3. 3
    Review Your Key Numbers
    See your down payment amount, loan amount, and estimated monthly PMI. If your down payment is 20% or more, no PMI is required.
  4. 4
    Compare Scenarios
    The comparison table shows all four standard down payment amounts side by side so you can weigh the tradeoffs at a glance.

Example Calculation

Home price $400,000 with a 10% down payment:

Down payment = $400,000 × 10% = $40,000
Loan amount = $400,000 − $40,000 = $360,000
Monthly PMI = $360,000 × 0.5% ÷ 12 = $150/mo
PMI removed at 20% equity (~$320,000 balance)

How the Down Payment Calculator Works

Formula, assumptions, and calculation steps for this real estate tool.

Methodology

Real-estate calculators combine property price, income, rent, tax, mortgage, or expense inputs into affordability and return estimates.

Calculation Steps

  1. Enter property, income, payment, or rent assumptions.
  2. Convert annual values to monthly values where needed.
  3. Apply affordability, yield, tax, or loan formulas.
  4. Show the result with ratios or payment context.

Assumptions and Limits

  • Market rents, taxes, insurance, and rates can change by location.
  • Closing costs and local regulations are included only if provided.
  • Use a real-estate or lending professional for binding decisions.

Frequently Asked Questions

The minimum down payment depends on the loan type. Conventional loans require as little as 3% for first-time buyers. FHA loans require 3.5% with a credit score of 580+. VA and USDA loans offer 0% down for eligible borrowers. Jumbo loans typically require 10–20%. A larger down payment generally qualifies you for better interest rates and avoids PMI.

PMI is insurance that protects the lender — not you — if you default on the loan. It is required on conventional loans when your down payment is less than 20%. PMI typically costs 0.5–1.5% of the loan amount per year, added to your monthly payment. It is automatically cancelled once your loan-to-value ratio reaches 78% based on the original purchase price.

The most straightforward way is to put down 20% or more. Alternatively, you can use a piggyback loan (80/10/10 structure) where a second loan covers part of the down payment. VA and USDA loans do not require PMI regardless of down payment. Some lenders offer lender-paid PMI in exchange for a slightly higher interest rate.

Not necessarily. While 20% eliminates PMI and reduces your loan amount, it also ties up a large amount of cash that could be invested elsewhere. If your investment returns exceed your PMI cost, a smaller down payment may be financially optimal. Also consider emergency fund needs — buying a home with minimal savings left over can be risky. The right amount depends on your financial situation and goals.

Real-World Applications

🏠
Home Purchase Planning
Calculate exactly how much cash you need to save before buying a home at your target price point.
🛡️
PMI Elimination Strategy
Model the monthly savings from reaching 20% equity and avoiding Private Mortgage Insurance.
🎓
First-Time Buyer Grant Planning
Layer state and local first-time buyer grants onto a 3% or 3.5% down payment calculation.
🏘️
Investment Property Purchase
Rental properties typically require 20–25% down — model the cash required vs projected rental yield.
📊
Loan Programme Comparison
Compare total cost of conventional (3%), FHA (3.5%), and 20% down scenarios side by side.
💸
Refinance Planning
Calculate whether accumulated equity has reached the 20% threshold needed to remove PMI through refinancing.

Common Mistakes

1
Not accounting for closing costs
Closing costs of 2–5% of the purchase price are due at settlement and must be saved separately from the down payment.
2
Draining the emergency fund for the down payment
Leaving no liquid reserve after closing is a common mistake — maintain 3–6 months of expenses even after buying.
3
Assuming bigger is always better
Putting 20% down when investing the extra 10% at a higher return than the mortgage rate produces better wealth outcomes.
4
Ignoring PMI removal timelines
PMI is automatically removed at 78% LTV (by law) and can be requested at 80% — factor this into the total cost calculation.
5
Not comparing loan programmes before committing
VA and USDA offer 0% down for qualifying buyers — many eligible buyers default to FHA without exploring all options.

Down Payment Requirements by Loan Type

Loan Type Min Down Payment PMI Required? Notes
Conventional (first-time) 3% Yes (until 20%) Fannie Mae HomeReady/Home Possible
Conventional (standard) 5% Yes (until 20%) Standard qualifying borrower
Conventional (no PMI) 20% No Best long-term cost
FHA Loan 3.5% Yes (lifetime) Credit score 580+; 10% if 500–579
VA Loan 0% No Active duty / veterans only
USDA Loan 0% Annual fee applies Rural properties; income limits
Jumbo Loan 10–20% Varies Lender-specific underwriting

References

  1. Fannie Mae. Selling Guide: HomeReady Mortgage. Fannie Mae, 2024.
  2. U.S. Department of Housing and Urban Development. FHA Single Family Housing Policy Handbook 4000.1. HUD, 2024.
  3. U.S. Department of Veterans Affairs. VA Home Loan Guaranty Benefits. VA, 2024.
  4. Consumer Financial Protection Bureau. Explore Interest Rates — Mortgage. CFPB, 2024.
  5. Mishkin, Frederic S. The Economics of Money, Banking, and Financial Markets. Pearson, 2022.

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