Down Payment Calculator
Enter a home price and a down-payment percent to see the down-payment amount, the resulting loan, and your loan-to-value ratio — plus whether PMI is likely to apply.
Down payment & LTV
Example: $400,000 home, 20% down → $80,000 down, $320,000 loan.
The 20% line
On a $400,000 home, 20% down is $80,000, leaving a $320,000 loan at 80% LTV — the threshold at or below which PMI is not charged. Drop to 10% down and the down payment is $40,000, but the loan rises to $360,000 at 90% LTV, which typically adds PMI until you build equity back to 20%. Both examples are computed by the same tested engine as the calculator.
Bigger down payment, or keep the cash?
A larger down payment means a smaller loan, a lower monthly payment, no PMI, and often a slightly better rate. A smaller one preserves cash for an emergency fund, moving costs, or renovations, and gets you into a home sooner. There is no universally right answer — it depends on your rate, your other uses for the money, and how much cushion you want after closing.
Put the number to work
Once you've chosen a down payment, the Mortgage Calculator shows the full monthly payment it produces, and the Affordability Calculator works the other direction — how much home your income and that down payment can support.
Frequently asked questions
How much should I put down?
Twenty percent is the classic target because it avoids PMI and lowers your payment, but it is not required. Many loans allow 3–5% down (and some VA/USDA loans allow zero). A larger down payment reduces the loan, the interest, and often the rate — but ties up cash you might need elsewhere.
What is loan-to-value (LTV)?
The loan divided by the home price, as a percent. Put 20% down and LTV is 80%; put 10% down and it is 90%. Lenders price risk by LTV — lower LTV can mean a better rate — and PMI generally applies while LTV is above 80%.
When does PMI go away?
On conventional loans, PMI can usually be cancelled once your LTV reaches 80% (through payments or appreciation), and it is automatically removed at 78% of the original value. FHA loans handle mortgage insurance differently and may carry it for the life of the loan.
Does a bigger down payment lower my rate?
Often modestly, because it lowers the lender’s risk (LTV). The larger, more direct effects are a smaller loan, lower monthly payment, and no PMI. Compare scenarios with the mortgage calculator to see the full monthly difference.
Not financial advice: a general educational estimate. PMI rules and minimum down payments vary by loan program and lender. Values are processed locally in your browser and never transmitted. See the methodology page.