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Down Payment Calculator 2025

See how much to put down on a house, your loan-to-value ratio, and whether PMI applies — then compare 3%, 5%, 10%, 15%, and 20% down side by side.

Down Payment & LTV
PMI Threshold
3%–20% Comparison
Export to CSV

How the Down Payment Calculator Works

This calculator takes three numbers you control — the home price, the percentage you plan to put down, and your interest rate and loan term — and turns them into the figures that drive your home-buying decision: your down payment in dollars, your loan-to-value (LTV) ratio, and whether private mortgage insurance (PMI) will be added to your payment. The rule is simple: when your down payment is less than 20% of the price, your LTV is above 80% and PMI applies; at 20% down or more, LTV is 80% or lower and PMI disappears.

Beyond your chosen scenario, the calculator builds a side-by-side comparison across 3%, 5%, 10%, 15%, and 20% down so you can instantly see how each level changes your loan amount, monthly principal and interest, PMI, and total monthly payment. The chart highlights the 20% PMI threshold so the payoff of crossing it is obvious. Defaults reflect a typical 2025 scenario, so the page is useful the moment it loads — just replace the numbers with your own and export the comparison to CSV.

Who Benefits Most From This Calculator

  • First-time buyers deciding how much cash to put down and whether to stretch for 20%.
  • Anyone weighing PMI who wants to see the exact monthly cost of putting less than 20% down.
  • Savers setting a goal who need a concrete dollar target for 3%, 5%, 10%, or 20% down.
  • Buyers comparing loan programs like FHA 3.5% versus conventional 3% or 20% down.
  • People deciding between a bigger down payment and keeping cash for emergencies or investing.

Who Should Look Elsewhere

This tool focuses on conventional-loan down payment and PMI math. If you have a VA or USDA loan with 0% down, or an FHA loan, note that government mortgage insurance (the FHA MIP or VA funding fee) works differently from conventional PMI and is not modeled here. If you want your full monthly payment including property taxes, homeowners insurance, and HOA dues, use the mortgage calculator. And if you are still figuring out how much home you can afford rather than how much to put down on a known price, start with the home affordability calculator, then return here.

Tax Implications of Your Down Payment

Your down payment itself is not tax-deductible — it is a purchase of equity, not an expense, so there is no direct write-off for the cash you put down. The tax effects are indirect. A bigger down payment means a smaller loan and less mortgage interest, which reduces the interest you could potentially deduct if you itemize; for most households that take the 2025 standard deduction ($15,000 single, $30,000 married filing jointly), the mortgage interest deduction provides no benefit anyway. PMI premiums have at times been deductible when Congress extended the provision, but this has not been a permanent part of the tax code, so do not count on it. If gift funds help with your down payment, the recipient owes no income tax on a gift; large gifts may have gift-tax reporting obligations for the donor. As always, treat any deduction as a possible bonus, not a reason to borrow more, and consult a tax professional for your situation.

Tips, Tricks & Things to Watch

  • Aim for 20% to avoid PMI — crossing the 80% LTV threshold removes the monthly premium and often earns a slightly better rate.
  • Don't dismiss low-down programs — FHA needs just 3.5% and conventional HomeReady/Home Possible loans go as low as 3% if 20% would take years to save.
  • Use gift funds the right way — most programs accept a documented gift from family; get a signed gift letter and deposit the money early to clear the paper trail.
  • Look for down payment assistance — state housing agencies, counties, and HUD-listed programs offer grants and forgivable loans, especially for first-time buyers.
  • Never drain your emergency fund — keep three to six months of expenses in reserve; being house-poor with no cushion is riskier than paying some PMI.
  • Budget for closing costs separately — they run 2–5% of the loan and are due in addition to your down payment.

Down Payment & PMI Formula (2025)

How your down payment, loan-to-value ratio, and PMI threshold are calculated.

Down Payment = Home Price × Down %

Example:

$400,000 home with 20% down

400000 × 0.20
= $80,000

Variables:

Home Price - The purchase price of the home
Down % - Percentage of the price paid upfront

LTV = (Home Price − Down Payment) ÷ Home Price

Example:

$400,000 home, $80,000 down → $320,000 loan

320000 ÷ 400000
= 80% LTV

Variables:

Loan Amount - Home price minus your down payment
LTV - Loan-to-value ratio, as a percentage

PMI/mo = Loan × PMI Rate ÷ 12 (only if LTV > 80%)

Example:

$360,000 loan at 0.5% PMI (10% down, 90% LTV)

360000 × 0.005 ÷ 12
= $150.00 / month PMI

Variables:

PMI Rate - Annual PMI rate (default 0.5% of the loan)
Threshold - PMI is charged whenever LTV exceeds 80%

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

How We Calculate & Keep This Accurate

The down payment is the home price times your down-payment percentage; the loan amount is the remainder, and LTV is the loan divided by the price. PMI is applied only when LTV exceeds 80% (less than 20% down), at a default annual rate of 0.5% of the loan, billed monthly. Principal and interest use the standard fixed-rate amortization formula. The comparison table recomputes all of these across 3%, 5%, 10%, 15%, and 20% down for your inputs.

We model conventional PMI. We do not model FHA mortgage insurance premiums (MIP), VA funding fees, USDA guarantee fees, property taxes, or homeowners insurance. Results are estimates for planning and may differ from a lender's official Loan Estimate.

Data & Freshness

Figures reflect 2025 tax-year data.

Last updated June 9, 2026 · Maintained by the Financial Calculator editorial team.

Down Payment Calculator — Frequently Asked Questions

Answers to the most common questions about how much to put down, PMI, low-down-payment programs, gift funds, and down payment assistance.

How much down payment do I need to buy a house?

There is no single required down payment — it depends on the loan program you choose. Conventional loans backed by Fannie Mae and Freddie Mac allow as little as 3% down for qualified first-time buyers, while FHA loans require a minimum of 3.5% with a credit score of 580 or higher. VA loans for eligible veterans and USDA loans for rural buyers can require 0% down. The traditional benchmark of 20% is not a legal requirement; it is simply the threshold at which private mortgage insurance (PMI) is no longer charged on a conventional loan. On a $400,000 home, 3% is $12,000, 10% is $40,000, and 20% is $80,000. The right amount for you balances how much cash you can put down without draining your emergency fund against the monthly savings from a smaller loan and avoiding PMI. Use the comparison table on this page to see how each down-payment level changes your loan amount, PMI, and monthly payment so you can pick the option that fits your budget and goals.

Is a 20% down payment really required?

No. A 20% down payment is a widely repeated guideline, but it is not required to buy a home. Its significance is purely about private mortgage insurance: on a conventional loan, lenders charge PMI whenever your loan-to-value ratio is above 80%, which happens when you put down less than 20%. Reaching 20% equity means no PMI, a smaller loan, less interest, and often a slightly better rate. However, millions of buyers purchase homes every year with 3%, 3.5%, 5%, or 10% down. Waiting years to save a full 20% can mean paying rent and missing out on home appreciation in the meantime, which may cost more than the PMI you were trying to avoid. PMI is also temporary — it is automatically cancelled once your balance reaches 78% of the original value, and you can request removal at 80%. The smart approach is to weigh the monthly PMI cost against the opportunity cost of waiting, and to keep enough cash in reserve rather than stretching for 20% and leaving yourself with no emergency fund.

What is PMI and how do I avoid it?

Private mortgage insurance (PMI) is an insurance premium that protects the lender — not you — against the higher risk of a loan with a small down payment. On conventional loans it applies whenever your loan-to-value ratio exceeds 80%, meaning you put down less than 20%. PMI typically costs 0.3% to 1.5% of the loan amount per year, billed monthly; this calculator uses a representative 0.5% rate. On a $360,000 loan that is roughly $150 a month. The most direct way to avoid PMI is to put down 20% or more. If you cannot, you have other options: a piggyback or 80/10/10 loan splits financing to keep the first mortgage at 80% LTV; lender-paid PMI bakes the cost into a slightly higher rate; and VA loans avoid PMI entirely for eligible veterans. If you already have PMI, you can remove it. Under the federal Homeowners Protection Act your servicer must cancel it automatically at 78% LTV, and you may request cancellation at 80% — sooner if your home appreciates and you pay for a new appraisal.

What low-down-payment programs exist (FHA, 3% conventional)?

Several programs let qualified buyers purchase with far less than 20% down. FHA loans, insured by the Federal Housing Administration, require just 3.5% down with a credit score of 580 or above (10% down for scores between 500 and 579). They are popular with first-time and lower-credit buyers but carry mortgage insurance premiums (MIP) that often last the life of the loan unless you refinance. Conventional 3%-down programs from Fannie Mae (HomeReady) and Freddie Mac (Home Possible) let eligible buyers — often first-timers or those under certain income limits — put down as little as 3%, with PMI that can be cancelled once you reach 20% equity. VA loans offer 0% down for eligible service members, veterans, and surviving spouses, with no monthly mortgage insurance. USDA loans provide 0% down for moderate-income buyers in designated rural areas. Each program has its own credit, income, property, and loan-limit rules, so compare the total cost — including mortgage insurance — not just the down payment, before choosing.

Can I use gift funds for my down payment?

Yes, most loan programs allow you to use gifted money toward your down payment, and it is a common way first-time buyers reach their target. The gift must genuinely be a gift, not a loan you are expected to repay — lenders require a signed gift letter from the donor stating the amount, the relationship, and that no repayment is expected. For conventional loans, gifts generally must come from a relative, spouse, domestic partner, or fiancé; FHA loans are more flexible and also accept gifts from close friends with a documented relationship, employers, or charitable organizations. Lenders will verify the paper trail: they want to see the funds leave the donor's account and arrive in yours, so deposit the money well before applying and keep records. On some conventional loans with less than 20% down, a portion of the down payment may need to come from your own funds, though many 3%-down programs now allow the entire down payment to be gifted. Tell your loan officer early if you plan to use gift money so the documentation is handled correctly.

What is down payment assistance and how do I get it?

Down payment assistance (DPA) refers to programs — usually run by state housing finance agencies, counties, cities, and some nonprofits and lenders — that help cover your down payment and sometimes closing costs. Assistance commonly takes the form of grants that never have to be repaid, forgivable loans that are erased after you live in the home for a set number of years, deferred-payment second loans repaid only when you sell or refinance, or low-interest second mortgages. Many programs target first-time buyers (often defined as not having owned a home in three years), have household income limits, may cap the purchase price, and frequently require completing a homebuyer education course. Amounts vary widely, from a few thousand dollars to tens of thousands. To find programs, start with your state housing finance agency's website and the U.S. Department of Housing and Urban Development (HUD) list of state and local resources, then ask a participating lender, since DPA must usually be paired with an approved first mortgage. Because rules and funding change, confirm current details before counting on assistance.

Is a bigger down payment better than keeping cash?

It depends on your overall financial picture, not just the mortgage math. A larger down payment lowers your loan amount, reduces total interest, can eliminate PMI, and may earn you a slightly better rate — real, guaranteed savings. But cash put into a down payment becomes illiquid home equity that you cannot easily tap in an emergency without a HELOC or refinance. Financial planners generally agree on a priority order: never drain your emergency fund (three to six months of expenses) to increase a down payment, and capture any employer 401(k) match before adding to the down payment, since that match is an immediate return you cannot beat. Beyond those, the decision is a trade-off between the certain savings of a bigger down payment and the flexibility and potential growth of keeping cash invested. If your mortgage rate is high, paying down more debt is attractive; if it is low and you have higher-return opportunities, a smaller down payment may make sense. The conservative middle ground — enough down to avoid PMI while keeping a healthy reserve — works well for most buyers.

How does my down payment affect my monthly payment?

Your down payment affects your monthly payment in two distinct ways. First, every dollar you put down reduces the loan amount, and a smaller loan means a smaller monthly principal-and-interest payment. On a $400,000 home at 6.5% over 30 years, going from 5% down to 20% down shrinks the loan from $380,000 to $320,000, cutting principal and interest by roughly $380 a month. Second, crossing the 20% threshold removes PMI entirely — an additional saving that, on a typical loan, can be $100 to $200 a month. So increasing your down payment can lower your payment through both a smaller loan and the elimination of PMI at once, which is why the jump from just under 20% to 20% feels especially worthwhile. The comparison table and chart on this page show exactly how your principal and interest, PMI, and total monthly payment change at 3%, 5%, 10%, 15%, and 20% down for your specific home price and rate, so you can see the payoff of each extra dollar before you decide.
US Down Payment Calculator User Reviews

Disclaimer: Results are estimates for planning only and do not constitute tax, legal, lending, or investment advice. Actual paycheck and tax outcomes can vary based on employer settings, local rules, and personal elections. Consult a qualified US tax professional, CFP, or attorney before making financial decisions.