Down Payment Calculator
Calculate your down payment percentage, required down payment amount, and resulting loan amount.
How to use this tool
- Enter home price and down payment amount in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your down payment % and the full breakdown beneath it.
Your down payment percentage affects your loan amount, monthly payment, and whether you'll need Private Mortgage Insurance (PMI).
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
Down Payment % = (Down Payment ÷ Home Price) × 100
Loan Amount = Home Price − Down Payment
PMI is required when Down Payment % < 20%.
How it works
This calculator determines what percentage of the purchase price you are putting down, derives the resulting mortgage loan amount, and flags whether Private Mortgage Insurance (PMI) is likely to be required. PMI is typically mandated by conventional lenders when the down payment is below 20% of the home price.
The calculation is straightforward arithmetic; the PMI flag is a rule-of-thumb based on the conventional 20% threshold and does not account for FHA, VA, or other loan programs that have different PMI rules. Consult your lender for exact PMI requirements.
Worked example
- Home price = $300,000; Down payment = $60,000.
- Down Payment % = (60,000 ÷ 300,000) × 100 = 20%.
- Loan Amount = $300,000 − $60,000 = $240,000.
- Since 20% is not less than 20%, PMI is not required.
Down payment: 20%; Loan amount: $240,000; PMI required: No.
Common mistakes to avoid
- Counting gift funds or seller credits toward the down payment without verifying lender rules, as some loan programs restrict non-borrower sources.
- Treating 20% as the minimum required rather than the threshold to avoid PMI -- many loans allow 3-5% down with PMI added to the monthly payment.
- Ignoring closing costs (typically 2-5% of the loan amount), which must be paid at closing in addition to the down payment, reducing available cash.
Key terms
- Down payment
- The upfront cash portion of a home purchase paid directly by the buyer, reducing the amount that must be borrowed.
- Loan-to-value ratio (LTV)
- The mortgage amount divided by the home's purchase price, expressed as a percentage. An LTV above 80% generally triggers PMI.
- PMI (Private Mortgage Insurance)
- Insurance the buyer pays to protect the lender if the down payment is less than 20%. It adds to the monthly mortgage cost until sufficient equity is built.
- Equity
- The portion of the home's value the buyer actually owns, equal to the home's value minus the outstanding loan balance.
Frequently asked questions
- How much down payment do I need?
- Conventional loans typically require 5–20% down. FHA loans allow 3.5% down (with mortgage insurance). VA and USDA loans may require 0% down for eligible borrowers.
- What is PMI?
- Private Mortgage Insurance (PMI) is required when your down payment is less than 20% on a conventional loan. It protects the lender, not you. PMI typically costs 0.5–1.5% of the loan amount per year.