Down Payment Calculator
Calculate how much you need for a down payment, closing costs, and total cash to close. See PMI estimates for down payments under 20%. See also Mortgage Calculator and Home Loan EMI Calculator.
How to Calculate Down Payment
The down payment is the upfront cash you pay when purchasing a home. To calculate it, multiply the home price by your desired down payment percentage. Add closing costs (typically 2-5% of the home price) to determine total cash needed at closing. If your down payment is less than 20%, you will likely need to pay Private Mortgage Insurance (PMI), which adds to your monthly costs until you build 20% equity.
Down Payment Formula
Down Payment = Home Price × (Down Payment % / 100)
Loan Amount = Home Price − Down Payment
Closing Costs = Home Price × (Closing Cost % / 100)
Total Cash Needed = Down Payment + Closing Costs
PMI (if down < 20%) ≈ Loan Amount × 0.5% to 1.5% / 12
Example
Home Price: $350,000, Down Payment: 20%, Closing: 3%
Down Payment = $350,000 × 0.20 = $70,000
Loan Amount = $350,000 − $70,000 = $280,000
Closing Costs = $350,000 × 0.03 = $10,500
Total Cash Needed = $70,000 + $10,500 = $80,500
PMI: Not required (20% down)
Down Payment Comparison Table
| Home Price | Down % | Down Payment | Loan Amount | Est. PMI/mo | Total Cash* |
|---|---|---|---|---|---|
| $300,000 | 3.5% | $10,500 | $289,500 | $362 | $19,500 |
| $300,000 | 5% | $15,000 | $285,000 | $238 | $24,000 |
| $300,000 | 10% | $30,000 | $270,000 | $158 | $39,000 |
| $300,000 | 20% | $60,000 | $240,000 | $0 | $69,000 |
| $400,000 | 10% | $40,000 | $360,000 | $210 | $52,000 |
| $400,000 | 20% | $80,000 | $320,000 | $0 | $92,000 |
| $500,000 | 15% | $75,000 | $425,000 | $177 | $90,000 |
| $500,000 | 20% | $100,000 | $400,000 | $0 | $115,000 |
* Total cash includes 3% closing costs. PMI estimates are approximate.
Frequently Asked Questions
How much should I put down on a house?
The traditional recommendation is 20% to avoid PMI, but many buyers put down less. FHA loans require as little as 3.5%, and some conventional loans allow 3-5% down. A larger down payment means a smaller loan, lower monthly payments, and no PMI, but it requires more upfront cash.
What is PMI and how much does it cost?
PMI (Private Mortgage Insurance) protects the lender if you default. It's required when the down payment is less than 20%. PMI typically costs 0.5% to 1.5% of the loan amount annually, added to your monthly payment. It can be removed once you reach 20% equity in the home.
What are closing costs?
Closing costs are fees paid at the time of purchase, typically 2-5% of the home price. They include appraisal fees, title insurance, attorney fees, origination fees, recording fees, and prepaid items like property taxes and homeowner's insurance. Some costs are negotiable.
Can I use gift money for a down payment?
Yes, most loan programs allow gift funds for down payments. FHA loans allow 100% of the down payment to be a gift. Conventional loans may require that some portion comes from your own funds. The gift donor typically needs to provide a gift letter confirming the money is not a loan.
Is it better to put 20% down or invest the difference?
It depends on your financial situation. Putting 20% down avoids PMI and reduces your loan amount. However, if you can earn a higher return investing the difference than the cost of PMI plus the mortgage rate, investing may be better mathematically. Consider your risk tolerance and emergency fund needs.