Down payment calculator
See your down payment, the loan you'll need, and whether you'll cross the 20% PMI line.
Putting down 20% or more usually lets you avoid private mortgage insurance (PMI).
Down payment
How much should you put down?
Your down payment is the share of the home price you pay upfront; the rest becomes your mortgage. A bigger down payment shrinks your loan, lowers your monthly payment, and — once you reach 20% — usually removes the need for private mortgage insurance (PMI), an extra monthly cost lenders charge on smaller down payments.
The formula
loan amount = home price − down payment
Worked example
On a $400,000 home with 20% down: the down payment is 400,000 × 0.20 = $80,000 and the loan is $320,000. Because that's exactly 20%, no PMI is required. Put down 10% instead and you'd owe PMI until you build more equity.
Once you know your loan amount, estimate the monthly cost with our mortgage calculator.
Frequently asked questions
How much do I need for a down payment?
It depends on the loan. Conventional loans often start at 3–5%, but 20% is the level that usually removes private mortgage insurance. On a $400,000 home, 20% is $80,000.
What is PMI and how do I avoid it?
Private mortgage insurance protects the lender when your down payment is under 20%. You avoid it by putting down at least 20%, or you can request its removal later once you reach 20% equity.
Is a bigger down payment always better?
A larger down payment lowers your loan, payment, and interest, but tying up too much cash can leave you short for closing costs, repairs, and emergencies. Balance the two.
What is loan-to-value (LTV)?
LTV is the loan as a percentage of the home price. A 20% down payment means an 80% LTV. Lower LTV generally means better rates and no PMI.
Financial disclaimer: This calculator is for general information and education only and is not financial advice. Estimates are based on the figures you enter and standard formulas. See our full disclaimer and confirm important decisions with a qualified professional.