Down Payment Calculator
Calculate a home down payment by dollar amount or percentage and see how different down payment amounts can affect your mortgage.
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Compare Down Payment Scenarios
How different down payments affect loan amount, monthly payment, PMI estimate, and total interest.
| Down % | Down Payment | Loan Amount | Monthly P&I | Est. PMI/mo | Monthly Payment | Total Interest |
|---|---|---|---|---|---|---|
| 3% | $12,000 | $388,000 | $2,452.42 | $177.83 | $2,630.26 | $494,873 |
| 5% | $20,000 | $380,000 | $2,401.86 | $174.17 | $2,576.03 | $484,669 |
| 10% | $40,000 | $360,000 | $2,275.44 | $165.00 | $2,440.44 | $459,160 |
| 15% | $60,000 | $340,000 | $2,149.03 | $155.83 | $2,304.86 | $433,651 |
| 20% | $80,000 | $320,000 | $2,022.62 | $0.00 | $2,022.62 | $408,142 |
| 25% | $100,000 | $300,000 | $1,896.20 | $0.00 | $1,896.20 | $382,633 |
Not every down-payment level is available for every borrower or loan program. These figures are estimates for comparison only.
Down Payment vs. Loan Amount & Payment
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How Down Payments Work
A down payment is the portion of a home's price you pay upfront. The remainder is financed as your mortgage. A larger down payment reduces the amount you borrow.
Your down payment can be expressed as a dollar amount or as a percentage of the home price. For example, $80,000 down on a $400,000 home is a 20% down payment. The loan amount is the home price minus the down payment.
Down Payment Amount vs. Percentage
The same down payment can look different depending on the home price. A 10% down payment on a $300,000 home is $30,000; on a $500,000 home it is $50,000. The percentage is what most loan programs reference, while the dollar amount is what you actually need in cash.
How Down Payment Affects Loan Amount
Every dollar you put down is a dollar you do not borrow — and do not pay interest on. A larger down payment directly reduces the loan amount, which reduces both the monthly payment and total interest over the life of the loan.
How Down Payment Affects Monthly Payments
A smaller loan means a smaller monthly principal-and-interest payment. Down payment can also affect mortgage insurance: with more equity upfront, estimated PMI may be lower or eliminated.
Down Payments and PMI
For many conventional loans, private mortgage insurance (PMI) may be required when the down payment is below 20% — but not every loan below 20% requires PMI, and PMI estimates vary by loan program, lender, and borrower. The calculator provides an illustrative estimate you can override or disable to match your situation.
Is 20% Down Required?
No. Down-payment requirements depend on the mortgage program and the borrower's circumstances. Some programs allow much lower down payments. 20% is a common threshold because it often avoids PMI on conventional loans, but it is not a universal requirement to buy a home.
Down Payment Calculator Methodology
How MoneyMetric HQ calculates the effect of different down payments.
Home price and down payment. The down payment can be entered as a dollar amount or a percentage; the calculator keeps both in sync. Down payment percentage = down payment ÷ home price × 100. Loan amount = home price − down payment.
Mortgage payment. The monthly principal-and-interest payment uses the standard amortizing formula M = P × [r(1+r)n] / [(1+r)n − 1] on the loan amount, rate, and term. For 0% interest, M = P / n. If the loan amount is $0 (100% down), the payment is $0 and there is no amortization.
PMI assumptions. In estimate mode, PMI is $0 when the down payment is 20% or more, and an illustrative annual rate is applied below 20% — clearly labeled as an estimate. You can switch to a manual rate or disable PMI entirely. PMI is a housing expense and is never added to the loan principal or amortization balance.
Scenario comparison. The comparison table computes the loan amount, monthly P&I, estimated PMI, estimated monthly loan payment, and total interest for several common down-payment percentages, using the same rate and term you entered.
Interest calculation. Total interest is summed from the full-precision amortization schedule of the loan amount.
Rounding. MoneyMetric HQ performs calculations using full numerical precision internally and rounds values only for display. Lifetime totals are summed from the full-precision schedule, never from rounded payments.
See our full MoneyMetric HQ Methodology page for more.
Down Payment Example
An illustrative scenario — not a current market rate or lending offer.
Home Price
$400,000
Down Payment
$80,000
Down Payment %
20%
Loan Amount
$320,000
Interest Rate
6.5%
Loan Term
30 years
Monthly P&I
$2,022.62
Estimated PMI
$0.00
With a 20% down payment on a $400,000 home, the loan amount is $320,000. At a 6.5% example rate over 30 years, the monthly principal-and-interest payment is about $2,022.62 and estimated PMI is $0. The 6.5% rate is illustrative and not a current mortgage rate or available lending offer. Taxes, insurance, and other housing costs vary by property and borrower.
Down Payment Calculator FAQs
What is a down payment?
A down payment is the portion of a home's purchase price you pay upfront in cash. The rest is financed as your mortgage. The loan amount equals the home price minus the down payment.
How do I calculate a down payment percentage?
Divide the down payment by the home price and multiply by 100. For example, $40,000 down on a $400,000 home is 10%. The calculator keeps the dollar amount and percentage in sync as you edit.
How does a larger down payment affect my mortgage?
A larger down payment reduces the loan amount, which lowers the monthly principal-and-interest payment and total interest. It may also reduce or eliminate estimated PMI on conventional loans.
Is 20% down required?
No. Down-payment requirements depend on the mortgage program and borrower circumstances. Some programs allow much less than 20% down. 20% is a common threshold because it often avoids PMI on conventional loans, but it is not a universal requirement to buy a home.
What is PMI?
Private mortgage insurance (PMI) is insurance that may be required on certain conventional loans when the down payment is below 20%. It protects the lender, not the borrower, and is a separate monthly cost on top of principal and interest.
Does everyone with less than 20% down pay PMI?
No. PMI requirements vary by loan program, lender, and borrower. Not every loan below 20% requires PMI. The calculator provides an illustrative estimate you can adjust or disable to match your situation.
Can I buy a home with less than 20% down?
Often yes, depending on the loan program and your qualifications. Several programs allow down payments well below 20%. This calculator does not determine eligibility — it shows how different down payments affect the loan numbers.
How does the down payment affect total interest?
A larger down payment means a smaller loan, which means less interest over the life of the loan. Because interest is charged on the outstanding balance, borrowing less reduces total interest when the rate and term are otherwise the same.
What happens if I enter a 100% down payment?
With a 100% down payment, the loan amount is $0 — there is no mortgage to amortize, so the monthly payment and total interest are $0. The calculator handles this gracefully without errors.
Does this calculator determine mortgage eligibility?
No. This is an educational tool that shows how down payments affect loan amount, payments, PMI estimates, and interest. Actual eligibility depends on the lender, loan program, credit, income, and other factors.
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How Down Payments Work
What Is PMI?
15-Year vs. 30-Year Mortgages
Understanding Closing Costs
MoneyMetric HQ calculators are provided for educational and informational purposes. Results are estimates and may differ from lender, loan-servicer or other financial calculations because of loan terms, payment timing, rounding, fees, taxes, insurance and other factors. MoneyMetric HQ does not provide personalized financial, investment, tax, legal or credit advice. See our Methodology, Financial Disclaimer, and Privacy Policy.