Down Payment Calculator
Your down payment sets your loan, your loan-to-value and whether you pay PMI. Down = price × percent, and 20% down avoids PMI on a conventional loan. This calculator shows the dollar amount, the loan, closing costs and the total cash to close.
Use this down payment calculator to turn a percentage into real numbers. Enter the home price and a down payment — as a percent or in dollars — and it returns your loan amount, loan-to-value, whether PMI applies, your closing costs and the total cash you need at the table, plus a side-by-side of common down-payment options.
Enter the price and your down payment, then press Calculate to see the loan, PMI status and cash to close.
How the down payment calculator works
The down payment is the single number that shapes the rest of your mortgage. This calculator takes your price and your chosen down payment — entered either way, since people think in both percentages and dollars — and derives everything that follows. Your loan amount is the price minus the down payment. Your loan-to-value is the loan divided by the price, and whether it sits above 80% decides if you pay PMI on a conventional loan. On top of that, it estimates your closing costs and adds them to the down payment to give the total cash to close — the figure that actually has to be in your account.
Seeing all of it together helps you plan realistically. A 20% down payment avoids PMI, but the options table shows what smaller down payments cost in loan size and insurance so you can weigh the trade. Once you have a target, drop the numbers into the mortgage calculator for the full payment, or check the whole purchase against your income with the affordability calculator.
The down payment math
- LTV — loan ÷ price × 100
- PMI — applies on a conventional loan above 80% LTV
- Closing costs — typically 2%–5% of the price
How much should you put down?
There is no single right answer, but the milestones are clear. The minimums are low — 3% on many conventional loans, 3.5% on FHA, and nothing on VA or USDA for those who qualify — which get you into a home sooner. The 20% mark is the other anchor: reach it and you skip PMI entirely on a conventional loan, shrink the balance, and often get slightly better pricing. In between, every extra percentage point trims the loan and the insurance a little. The best figure is the one that leaves you in the home you want without draining your safety net.
Don't forget the cash beyond the down payment
Buyers often budget for the down payment and are caught out by everything else. Closing costs alone can add 2% to 5% of the price, and then there are moving expenses, immediate repairs, and furnishing an empty house. That is why this calculator separates cash to close from the down payment, and why keeping a reserve matters. Putting down slightly less to preserve an emergency fund is frequently the smarter play — a home you can comfortably afford beats a bigger down payment that leaves you stretched.
Estimate only — not financial advice. Minimum down payments, PMI rules and closing costs vary by loan program and lender. Confirm exact figures with your lender before making an offer.
How to use it & key terms
Enter the home price, a down payment as a percent or dollars, and your estimated closing-cost percentage, then press Calculate to see the loan, loan-to-value, PMI status and total cash to close.
| Term | What it means |
|---|---|
| Down payment | The cash you pay up front, reducing the loan. |
| Loan amount | Price minus down payment — what you borrow. |
| LTV | Loan-to-value — the loan as a percentage of the price. |
| PMI | Private mortgage insurance, charged above 80% LTV on conventional loans. |
| Closing costs | Fees at closing, usually 2%–5% of the price. |
| Cash to close | Down payment plus closing costs — total cash needed. |
Sources & methodology
The calculator converts your down payment between percent and dollars against the home price, then computes the loan (price minus down payment), the loan-to-value ratio (loan divided by price), and flags PMI when LTV exceeds 80% — the conventional-loan threshold above which private mortgage insurance normally applies. Closing costs are estimated as your entered percentage of the price and added to the down payment for total cash to close. The options table repeats the calculation at 3%, 5%, 10%, 15% and 20% down so you can compare loan size and PMI status at a glance.
Sources: Conventional PMI threshold at 80% loan-to-value (Homeowners Protection Act), typical minimum down payments by loan type (conventional 3%, FHA 3.5%, VA/USDA 0%), and standard closing-cost ranges (2%–5%) per Consumer Financial Protection Bureau guidance.
How every dollar down changes the loan
The size of your down payment does far more than set the loan amount — it quietly reshapes almost every number on the mortgage. Three effects happen at once, and they compound. The first is obvious: a larger deposit means a smaller loan, so there is less principal to charge interest on for the life of the mortgage. The second and third are less visible, but they often matter more to the monthly payment.
The second effect is private mortgage insurance. On a conventional loan, lenders generally require PMI whenever the loan is more than about 80% of the value — in other words, when you put down less than a fifth. PMI protects the lender, not you, and it adds a monthly cost that does nothing to reduce your balance. Crossing the roughly 20% mark removes that cost entirely, which is why moving from a small deposit to a fifth down can cut the payment by more than the change in loan size alone would suggest. Our PMI calculator shows what that insurance adds while it lasts.
The third effect is the rate itself. Lenders price risk, and a borrower with more of their own money in the deal is a safer bet, so a bigger down payment can earn a slightly better interest rate. That lowers both the payment and the total interest across the whole term. Together these three levers — smaller principal, no PMI and a keener rate — explain why raising a deposit often feels disproportionately powerful compared with the extra cash involved.
There is a limit, though. Once you are past the point where PMI falls away and the rate has settled, extra cash down mostly trades a liquid asset for home equity you cannot easily spend. Draining every last bit of savings to put more down can leave you house-rich and cash-poor, with no cushion for the moving costs, repairs and furniture that arrive right after closing. A sensible plan weighs the guaranteed saving from a larger deposit against the value of keeping an emergency reserve — and remembers that the cash to close is always more than the down payment alone.
Frequently asked questions
How much down payment do I need for a house?
It depends on the loan. Conventional loans can go as low as 3% down, FHA needs 3.5%, and VA and USDA allow zero down for eligible buyers. Putting down 20% avoids PMI on a conventional loan. This calculator shows the dollar amount and loan for any percentage you choose.
Is a 20% down payment required?
No. Twenty percent is a common target because it avoids private mortgage insurance on a conventional loan, but it is not required. Many buyers put down 3% to 10% and pay PMI until they build equity. The right amount balances your cash against the cost of PMI and a larger loan.
What is included in cash to close?
Cash to close is your down payment plus closing costs — lender fees, title, appraisal, taxes and prepaids. Closing costs commonly run 2% to 5% of the price. This calculator adds your chosen closing-cost percentage to the down payment so you see the full amount needed.
How does the down payment affect my loan?
A bigger down payment means a smaller loan, a lower loan-to-value ratio, and usually a lower monthly payment. Once your down payment reaches 20% of the price, you also avoid PMI on a conventional loan. Even a few extra percent reduces both the balance and the insurance.
Does a bigger down payment lower my interest rate?
Sometimes. A larger down payment lowers your loan-to-value ratio, which lenders view as less risky, and that can earn slightly better pricing. The effect is usually modest next to your credit score, but combined with avoiding PMI, it can meaningfully cut your monthly cost.
Should I use all my savings for a down payment?
Generally no. Keep an emergency fund and money for moving, repairs and furnishings rather than putting every dollar into the down payment. A slightly smaller down payment with healthy reserves is often safer than a maximum down payment that leaves you cash-poor.
How do I calculate a down payment percentage?
Divide the down payment by the home price and multiply by 100 — $60,000 on a $400,000 home is 15%. To go the other way, multiply price by the percentage: 15% of $400,000 is $60,000. This calculator does both, so you can enter dollars or a percentage.
Does earnest money go toward the down payment?
Usually yes. Earnest money is a good-faith deposit you make when your offer is accepted, and at closing it is typically credited toward your down payment or closing costs rather than charged on top. If the deal falls through for a reason covered by your contract's contingencies, you can often get it back — think of it as an early instalment of cash you already owe, not an extra cost.
Is the down payment included in closing costs?
No. The down payment and closing costs are separate. Your down payment is the portion of the price you pay up front; closing costs are the lender, title and related fees, usually 2% to 5% of the price. Together they make up your total cash to close, which is what this calculator adds up.
How much down payment do I need for an investment property?
More than for a home you live in. A conventional loan on a rental property typically requires 15% to 25% down, and there is no zero-down or low-down government option as there is for a primary residence, because FHA, VA and USDA loans require you to occupy the home. A larger down payment also helps the numbers work, since it lowers the loan and the payment against the rent.