Down Payment Calculator
Calculate the exact dollar amount needed for a down payment on a home purchase based on the home's price and your chosen down payment percentage. Use this to plan your savings goal before applying for a mortgage.
About this calculator
A down payment is the portion of a home's purchase price you pay upfront, with the remainder financed through a mortgage. The formula is straightforward: Down Payment = Home Price × (Down Payment % / 100). Common down payment thresholds have significant implications: a 20% down payment eliminates PMI requirements, 10% and 5% are typical for conventional loans with PMI, and FHA loans allow as little as 3.5%. A larger down payment reduces your loan balance, lowers monthly mortgage payments, reduces or eliminates PMI, and may qualify you for a better interest rate. The remaining balance after the down payment — known as the loan amount — is what your lender finances and what your mortgage payments are based on.
How to use
Suppose you are buying a home priced at $375,000 and plan to put down 10%. Enter Home Price = $375,000 and Down Payment Percentage = 10. The calculator computes: $375,000 × (10 / 100) = $375,000 × 0.10 = $37,500. Your required down payment is $37,500, and your loan amount will be $375,000 − $37,500 = $337,500. Since 10% is below 20%, you will likely need PMI on the mortgage. Increasing the percentage to 20% would require $75,000 down but eliminate PMI costs.
Frequently asked questions
How much down payment do I need to avoid paying PMI on a conventional loan?
To avoid private mortgage insurance on a conventional loan, you generally need to put down at least 20% of the home's purchase price. This brings your loan-to-value (LTV) ratio to 80%, which is the threshold most lenders use to waive PMI. If you put down less than 20%, PMI will be added to your monthly payment until your equity reaches 20%. Some loan programs, like VA loans for eligible veterans, allow 0% down without requiring PMI at all.
What is the minimum down payment for an FHA loan versus a conventional loan?
FHA loans, backed by the Federal Housing Administration, allow down payments as low as 3.5% for borrowers with a credit score of 580 or higher, or 10% for scores between 500 and 579. Conventional loans typically require a minimum of 3–5% down, though those with less than 20% down will pay PMI. The key trade-off is that FHA loans require mortgage insurance premiums (MIP) for the life of the loan in most cases, while conventional PMI can be removed once you reach 20% equity. Choosing between them depends on your credit score, income, and long-term plans.
Does a larger down payment always make financial sense when buying a home?
Not necessarily — it depends on your full financial picture. A larger down payment reduces your monthly payment, eliminates PMI, and lowers interest paid over the loan's life, but it also ties up liquid capital. If your mortgage interest rate is low and you could earn a higher return investing those funds elsewhere, a smaller down payment might be more efficient. Additionally, depleting your emergency fund for a larger down payment can leave you financially vulnerable after closing. Most financial advisors recommend maintaining three to six months of expenses in liquid savings even after making the down payment.