Down Payment Calculator

The Down Payment Calculator computes the dollar amount you need to put down on a home purchase and determines whether you will be required to pay Private Mortgage Insurance (PMI). The calculation is straightforward: down payment dollar amount equals home price multiplied by down payment percentage, and the loan amount equals home price minus down payment. PMI is typically required when the down payment is less than 20% of the home price. PMI rates generally range from 0.5% to 1.5% of the loan amount annually, which translates to roughly $140 to $210 per month on a $280,000 loan. This calculator helps you understand the trade-off between a larger down payment (more upfront cash, lower monthly payment, no PMI) versus a smaller down payment (more cash available for emergencies or renovations, butPMI added monthly). This calculator is useful for first-time homebuyers figuring out how much to save, those evaluating whether to wait for a larger down payment or buy sooner with less down, and sellers or agents helping buyers understand their options. It also helps model different scenarios: putting 5% down versus 10% versus 20%, showing how each affects the loan amount, PMI requirement, and monthly payment. For FHA loans, the minimum down payment is 3.5% with mortgage insurance premiums (MIP) that work differently from conventional PMI. VA loans offer 0% down for eligible borrowers. This calculator does NOT account for closing costs, which are separate from the down payment and typically add 2%–5% of the loan amount to your upfront cash needs. It does not model the effect of different loan terms on required down payment. It assumes a single home purchase rather than multi-family property where the calculation of PMI thresholds can differ. The PMI rate shown is an estimate — your actual PMI rate depends on your credit score, lender, and loan type. Always factor in both closing costs and PMI when planning your total cash to close.