CompoundInterestCalc
Free online tool · Real estate

Down Payment Calculator

How much should you put down on a home? This free down payment calculator shows the cash you'll need at any percentage — and exactly how that choice ripples through your loan size, monthly payment and PMI.

Compare common down payment levels side by side, see when you cross the 20% mark that removes PMI, and find out how long it'll take to save your target at your current pace. No account, no sign-up.

Your down payment
$
20%
%
▶ How long will it take to save?
$
$
%
Down payment needed
$0
Loan amount
$0
Est. monthly
$0
Time to save
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Down payment levels compared
Saving toward your goal
Savings

Estimates are for illustration and education only — not a loan offer. PMI rates and lender minimums vary; some loans allow as little as 3% down.

The math

How the down payment works

Your down payment is simply a percentage of the purchase price — but it quietly controls your loan size, whether you owe PMI, and how much cash you need at closing.

Down payment = Home price × Down payment %
The rest becomes your loan: loan amount = price − down payment.
Cash to close = Down payment + Closing costs
Closing costs typically run about 2–5% of the price, on top of the down payment itself.
Worked example. On a $400,000 home, 20% down is $80,000, leaving a $320,000 loan and — crucially — no PMI. Put 10% ($40,000) down instead and you borrow $360,000 and pay PMI until you reach 20% equity. Add roughly $12,000 of closing costs either way to get your true cash to close.
See it in action

Different down payment strategies

Buy sooner with less down, or wait and skip PMI. Load any scenario to see the trade-off.

Quick guide

How to use the down payment calculator

Four short steps. Every field updates the cash needed, the comparison and the savings timeline instantly.

Step 1

Enter the home price

The purchase price of the home you're targeting. Your down payment is a percentage of this.

Step 2

Slide your down payment

Drag between 0% and 50%. Watch the loan, payment and PMI status change, and notice what happens at 20%.

Step 3

Compare the levels

The comparison shows cash needed and monthly payment at 3%, 5%, 10%, 15% and 20% — plus which levels carry PMI.

Step 4

Plan your saving

Add what you've saved and your monthly pace to see how long until you hit your target down payment.

Good to understand

How much should you put down?

There's no single right answer — it's a trade-off between buying sooner and owning more cheaply. A bigger down payment means a smaller loan, a lower monthly payment, less interest over time, and no PMI. A smaller one gets you into a home faster and keeps cash free for emergencies and moving costs.

The 20% threshold

The number everyone talks about is 20%. Put down that much or more and you avoid private mortgage insurance (PMI) — an extra monthly charge that protects the lender, not you. Below 20%, most conventional loans add PMI until you build 20% equity, after which it usually drops off.

You don't always need 20%

Many buyers put down far less. Conventional loans can go as low as 3%, and government-backed programs lower still. You'll pay PMI and a higher monthly amount, but for buyers in rising markets, getting in sooner can outweigh the cost of waiting years to save a full 20%.

Don't drain your savings

A larger down payment shouldn't leave you with nothing. Lenders like to see cash reserves, and homeownership brings surprise expenses. Use the savings timeline here to plan a target that still leaves an emergency fund intact.

Once you've picked a number, run the full payment in the mortgage calculator, or check what you can afford with the affordability calculator.

Quick answers

Down payment FAQ

Do I really need 20% down?
No. 20% lets you avoid PMI and lowers your payment, but many conventional loans accept as little as 3–5% down, and some government-backed loans require even less. This calculator shows the cost difference at each level so you can decide.
What is PMI and when does it apply?
Private mortgage insurance is an extra monthly charge most lenders require when your down payment is under 20%. It protects the lender if you default. Once you reach 20% equity — through payments or appreciation — it can usually be removed.
Is the down payment all the cash I need?
No. On top of the down payment you'll typically owe closing costs of roughly 2–5% of the price, plus moving and immediate repair expenses. It's wise to keep a cash reserve beyond the down payment itself.
Where should I keep my down payment savings?
If you're buying within a couple of years, a high-yield savings account or money-market fund keeps the money safe and liquid. The savings-return field lets you model that modest interest. Money needed soon generally shouldn't be in the stock market.
Is this financial advice?
No. It's an educational estimate. PMI rates, loan minimums and closing costs vary by lender and location. Confirm the specifics with a mortgage professional before making decisions.