Down Payment Calculator 2026: How Much Do You Need?
Instantly see how different down payment percentages affect your loan and monthly payment. Enter your home price and down payment percentage, then choose your loan term and interest rate to calculate the dollar amount you need to save, your resulting loan amount, loan-to-value (LTV) ratio, and monthly payment. The calculator automatically shows whether PMI is required (triggered when LTV exceeds 80%, meaning down payment below 20%) and estimates the monthly PMI cost if needed. Experiment with different down payment amounts to understand the impact: higher down payments lower your loan balance and monthly payment, and once you hit 20% down, you eliminate PMI entirely, saving hundreds per month. Perfect for planning your down payment savings goal and understanding the true cost-benefit of putting down more at purchase.
A $400,000 home with 20% down requires a $80,000 down payment, leaving a $320,000 loan. At 6.5% over 30 years the monthly principal and interest payment is $2,023. With 20% down, no PMI is required.
How the down payment calculator works
Enter your home price, down payment percentage, loan term and interest rate. The calculator computes four values instantly: the dollar down payment, the resulting loan amount, the loan-to-value (LTV) ratio, and the monthly principal and interest payment using the standard PMT formula. If your LTV exceeds 80% (meaning your down payment is below 20%), a PMI estimate also appears, based on the midpoint of the CFPB-published 0.5-1% annual range. You can edit the PMI rate field to match a specific lender quote.
Worked example: $400,000 home at 6.5% for 30 years
Using the calculator defaults to illustrate each step.
- Down payment: $400,000 x 20% = $80,000
- Loan amount (P): $400,000 - $80,000 = $320,000
- LTV: $320,000 / $400,000 x 100 = 80.00% (PMI not required)
- Monthly rate (r): 6.5% / 12 / 100 = 0.005417
- Number of payments (n): 30 x 12 = 360
- PMT formula:
M = P * [r(1+r)^n] / [(1+r)^n - 1]
M = 320,000 * [0.005417 * (1.005417)^360] / [(1.005417)^360 - 1]
(1.005417)^360 = 7.0437
M = 320,000 * [0.005417 * 7.0437] / [7.0437 - 1]
M = 320,000 * 0.038154 / 6.0437
M = 320,000 * 0.006313 = $2,020The calculator rounds at full precision; small rounding differences from the step-by-step are normal.
Down payment: frequently asked questions
What is a down payment?
A down payment is the portion of the home purchase price you pay upfront in cash. It is not financed through the mortgage. For example, on a $400,000 home with a 20% down payment, you pay $80,000 upfront and borrow the remaining $320,000. A larger down payment reduces the loan amount, lowers your monthly payment, and can eliminate the need for private mortgage insurance (PMI).
How much should I put down?
Twenty percent is the traditional benchmark: it eliminates PMI and typically secures better loan terms. However, many loan programs allow much less. FHA loans accept as little as 3.5% down, and some conventional programs go to 3%. Putting down less means a higher loan balance, higher monthly payments, and the added cost of PMI until you reach 20% equity. The right amount depends on your savings, monthly budget, and how long you plan to stay in the home.
What is PMI and when can I cancel it?
Private mortgage insurance (PMI) protects the lender if you default. It is typically required when your loan-to-value ratio (LTV) exceeds 80%, meaning you put down less than 20%. The CFPB notes that PMI premiums generally range from 0.5% to 1% of the loan amount per year. Under the Homeowners Protection Act, you can request cancellation once your LTV reaches 80%, and the lender must automatically cancel it at 78% LTV based on the original amortisation schedule. Source: Consumer Financial Protection Bureau.
Does a larger down payment lower my monthly payment?
Yes, in two ways. First, a smaller loan balance means a lower principal and interest payment directly. Second, if your down payment lifts you above 20% of the home price (LTV at or below 80%), PMI is not required, saving you typically $50 to $200 or more per month on top of the lower base payment. The calculator above shows both effects together.
Sources
- PMI annual rate range (0.5-1%): Consumer Financial Protection Bureau, "What is private mortgage insurance?"
- Monthly payment formula: standard PMT (present-value annuity) formula from financial mathematics. No external URL required; the formula is universally accepted.
Reviewed by the CalculatorHub team, edited by James Graham, 12 June 2026. See our methodology. General information, not financial or mortgage advice.