Down Payment Calculator
$
10%
6.50%
Down Payment Amount$35,000.00
Monthly Payment$2,122.26
Estimated PMI$131.25
Loan Amount$315,000.00
home price$350K
Down Payment$35,000.00
Loan Amount$315,000.00
A down payment is the cash you pay upfront when buying a home, with the remainder financed as a mortgage. This calculator turns a home price and down-payment percentage into a dollar amount, shows the resulting loan size, and estimates the monthly payment that follows. It also flags private mortgage insurance, which lenders typically require whenever you put down less than 20 percent of the price.
Formula
Down payment = price × pct ÷ 100; PMI/mo = (loan × 0.005) ÷ 12 when pct < 20
- price
- Purchase price of the home
- pct
- Down payment as a percentage of the price (0-100)
- loan
- Financed amount = price − down payment
- 0.005
- Assumed annual PMI rate (0.5%) applied when pct is under 20%
How it works
- Enter the home price and the down payment you plan to make as a percentage of that price. The calculator multiplies them to get your cash down payment and subtracts it from the price to get the financed loan amount.
- Provide the interest rate and loan term in years so the tool can compute the monthly principal-and-interest payment using the standard fixed-rate annuity formula.
- If your down payment is below 20 percent, the calculator adds an estimated PMI charge of 0.5 percent of the loan balance per year (divided by 12) on top of the payment until you reach the 20 percent equity threshold.
Worked example
A $400,000 home with a 10% down payment at a 6.5% rate over 30 years, which triggers PMI because it is under 20%.
- Down payment: 400,000 × 10% = $40,000, leaving a loan of 400,000 − 40,000 = $360,000.
- Principal-and-interest payment on $360,000 at 6.5% for 30 years is about $2,275.44/mo.
- PMI: (360,000 × 0.005) ÷ 12 = $150/mo, added because 10% is below the 20% threshold.
- Total monthly payment: 2,275.44 + 150 = $2,425.44.
Down payment $40,000, loan $360,000, monthly payment about $2,425.44 (including $150 PMI), with total interest near $459,160 over the life of the loan.
Frequently asked questions
- Why does a smaller down payment add PMI?
- When you put down less than 20 percent, lenders carry more risk and require private mortgage insurance to protect themselves. This tool estimates PMI at 0.5 percent of the loan balance per year; the charge typically drops off once your equity reaches 20 percent.
- How much should I put down on a house?
- Twenty percent is the common benchmark because it avoids PMI and lowers the loan, but many conventional loans allow as little as 3-5 percent down. A larger down payment shrinks both the monthly payment and the total interest you pay.
- Does this include closing costs or property taxes?
- No. The estimate covers the down payment, the financed loan, principal and interest, and PMI when applicable. Closing costs, property taxes, homeowners insurance, and HOA dues are separate expenses you should budget for on top of this figure.
- Is the down payment the only upfront cash I need?
- Usually not. Buyers also pay closing costs, typically 2-5 percent of the price, plus prepaid escrow for taxes and insurance. Plan for those amounts in addition to the down payment shown here.