Affordability & Qualifying

Down Payment Calculator

Turn a down-payment percentage into real dollars — the cash up front, the loan that remains, your loan-to-value, and whether you clear the 20% threshold that avoids PMI.

Inputs
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Estimates only. Adjust any value to recalculate instantly.

Results
Down payment $85,000 20% of $425,000 — leaves a $340,000 loan
Loan amount $340,000
Loan-to-value (LTV) 80.0% no PMI
Monthly P&I $2,205.23
To reach 20% down $85,000
Price split
Price split Down payment: $85kFinanced (loan): $340k
  • Down payment $85k
  • Financed (loan) $340k

At 20% down you are at or below 80% loan-to-value, so no private mortgage insurance is required.

How the down payment calculator works

This calculator translates a down-payment percentage into every number that flows from it. Enter the home price and the percent you plan to put down, and it returns the cash you'll need at the table, the loan you'll carry, and the loan-to-value ratio that lenders price against.

It also flags the line that matters most for cost: whether you've reached the 20 percent mark that lets you skip private mortgage insurance. Finally it estimates the monthly principal and interest on the resulting loan, so you can weigh a bigger upfront check against a lighter payment.

Worked example

Worked example: with home price of $425,000, down payment of 20.00% and interest rate of 6.75%, the down payment calculator shows down payment of $85,000.

Loan amount
$340,000
Loan-to-value (LTV)
80.0%
Monthly P&I
$2,205.23
To reach 20% down
$85,000
How it scales
Down paymentDown payment
3.00%$12,750
5.00%$21,250
10.00%$42,500
20.00%$85,000

The formula

Down payment = home price × down-payment percent. Loan amount = home price − down payment. Loan-to-value = loan ÷ home price. PMI is typically required when LTV exceeds 80% (down payment under 20%). Monthly P&I = L × r ÷ [1 − (1 + r)^−n], with r the monthly rate and n the number of payments.

Assumptions & limitations
  • Cash to close is more than the down payment — closing costs, prepaid escrow, and reserves add several percent of the price.
  • PMI removal at 20% applies to conventional loans; FHA and other programs handle mortgage insurance under different rules.
  • Monthly figure shown is principal and interest only; taxes, insurance, HOA, and PMI are billed on top of it.
  • Loan-to-value is based on price, but lenders use the lower of price or appraised value — a low appraisal raises effective LTV.
  • A larger down payment lowers cost and risk but ties up cash; keep an emergency reserve rather than putting every dollar down.

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender or a licensed advisor.

Frequently asked

Questions about the down payment calculator

Why does 20 percent down matter so much?

At 20 percent down your loan-to-value drops to 80 percent, the point at which conventional lenders stop requiring private mortgage insurance.

PMI exists to protect the lender on higher-risk, low-equity loans; removing it can save a meaningful monthly premium and often improves the interest rate you're offered as well.

Can I buy with less than 20 percent down?

Absolutely — most buyers do. Conventional loans go as low as 3 percent down, FHA to 3.5 percent, and VA and USDA can reach zero for eligible borrowers. The tradeoffs are mortgage insurance, a larger loan, and a higher payment. The calculator shows exactly how each percentage shifts those numbers.

Is the down payment the only cash I need to close?

No. Beyond the down payment you'll owe closing costs — lender fees, title, appraisal, and taxes — typically 2 to 5 percent of the price, plus prepaid items like the first year of insurance and escrow funding.

Many lenders also want to see cash reserves left over. Budget well above the down payment alone.

Is the Down Payment Calculator free to use?

Yes. Every calculator on MortgageLoansCalculator is completely free, with no sign-up, login or paywall. Run as many scenarios as you like.

How much down payment do I need for a house?

It depends on the loan. Conventional loans start at 3% down, FHA at 3.5%, and VA and USDA loans allow 0% down for eligible buyers. Putting 20% down removes private mortgage insurance (PMI) and usually earns a better interest rate.

What is the minimum down payment for a house?

The minimum is 3% for a conventional loan and 3.5% for FHA. Qualified VA and USDA borrowers can buy with nothing down. A larger down payment lowers your loan amount, your monthly payment, and — at 20% — removes PMI.

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