🏠 Down Payment Calculator

Typical Down Payment by Loan Type

Minimum down payments vary widely by loan program. While 20% is the traditional benchmark, many programs allow far less.

Note: VA and USDA loans are restricted to eligible veterans and rural-area buyers respectively. FHA loan limits vary by county. Always confirm current program rules with an approved lender.

Down Payment Impact on a $400,000 Home

Putting more down shrinks your loan, cuts your monthly payment, and may eliminate mortgage insurance. The table below uses a 30-year fixed rate of 7%.

Note: Monthly principal & interest calculated with the standard amortisation formula at 7% APR. PMI estimates assume 0.5%–1% of the loan balance annually and stop once you reach 20% equity. Actual figures vary by lender and credit score.

1. Enter the purchase price of the home.
2. Enter the down payment percentage you plan to make (e.g. 20 for 20 percent).
3. Enter the annual mortgage interest rate as a percentage.
4. Enter the loan term in years (typically 15 or 30).
5. Click Calculate to see the down payment, loan amount and monthly payment.

How much should I put down on a house?

A 20 percent down payment is the traditional benchmark because it eliminates the need for private mortgage insurance (PMI). However, many programs allow 5, 10 or even 3.5 percent down. The right amount depends on your savings, your monthly budget and how long you plan to stay in the home. Use the calculator to compare different scenarios.

What is PMI and when do I need it?

Private Mortgage Insurance (PMI) protects the lender if you default, and is typically required when your down payment is less than 20 percent. It usually costs 0.5–1 percent of the loan amount per year and is added to your monthly payment. Once your loan-to-value ratio reaches 80 percent, you can request to have PMI removed.

Does the monthly payment include taxes and insurance?

No. This calculator shows principal and interest only. Your actual monthly housing payment (often called PITI) also includes property taxes and homeowners insurance, and may include PMI or HOA dues. Add roughly 1–2 percent of the home price per year for taxes and insurance to estimate your full payment.

Is it better to put down more or less?

A larger down payment reduces your monthly payment, eliminates PMI and may lower your interest rate, but it ties up cash that might be needed for emergencies or other investments. A smaller down payment preserves liquidity but costs more per month and over the life of the loan. There is no universally right answer — it depends on your full financial picture.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

When deciding on your down payment, do not overlook closing costs, which typically add 2–5 percent of the purchase price on top of the down payment. A 20 percent down payment on a 400,000-dollar home is 80,000 dollars, but you may need another 8,000–20,000 dollars in cash for closing. Putting down less than 20 percent means paying PMI, which can add 100–300 dollars per month to your payment — run the numbers with and without PMI to see the true cost difference. If you have extra cash after your down payment, consider whether paying points (an up-front fee that lowers your interest rate) makes sense; it usually pays off if you plan to stay in the home for more than five to seven years. Always keep an emergency fund of three to six months of expenses separate from your down payment, because becoming house-poor with no savings buffer is a common and painful mistake for first-time buyers.