Down Payment Calculator (2026)
Work out the cash you need up front, the loan size, and whether mortgage insurance applies.
Calculate Your Down Payment
The agreed sale price of the home you plan to buy.
The share of the price you pay in cash at closing. 20% avoids conventional PMI.
The fixed annual rate on your mortgage loan.
How long you take to repay the loan. 30 years is the most common term.
The monthly figure is principal and interest only. Property taxes, homeowners insurance, HOA dues, and mortgage insurance premiums (if any) are extra.
Down Payment Options on a $400,000 Home
The size of your down payment changes both the cash you need at closing and the loan you carry for decades. The table below compares the most common down payment levels on a $400,000 purchase.
| Down payment | Cash up front | Loan amount | Loan-to-value | Mortgage insurance |
|---|---|---|---|---|
| 3.5% | $14,000 | $386,000 | 96.5% | FHA mortgage insurance premium |
| 5% | $20,000 | $380,000 | 95.0% | PMI required (conventional) |
| 10% | $40,000 | $360,000 | 90.0% | PMI required (conventional) |
| 20% | $80,000 | $320,000 | 80.0% | None |
A smaller down payment gets you into a home sooner, but it raises your monthly payment, adds mortgage insurance costs, and leaves you with less equity if prices fall. A larger down payment costs more up front but lowers your loan, your monthly payment, and your total interest.
How the Down Payment Calculation Works
Three simple steps turn your inputs into the results above. First, the down payment is the home price multiplied by the down payment percentage. Second, the loan amount is the home price minus the down payment. Third, the monthly principal and interest payment comes from the standard fixed-rate mortgage formula.
Loan amount = home price − down payment
Loan-to-value (LTV) = loan amount / home price x 100
Monthly P and I = loan x [r(1 + r) ^ n] / [(1 + r) ^ n − 1], where r = annual rate / 12 and n = term in months
Worked Example: $400,000 Home, 20% Down, 6.5% for 30 Years
| Calculation | Amount | |
|---|---|---|
| Home price | $400,000 | |
| Down payment | $400,000 x 20% | $80,000 |
| Loan amount | $400,000 − $80,000 | $320,000 |
| Loan-to-value | $320,000 / $400,000 x 100 | 80.0% |
| Monthly principal and interest | $320,000 at 6.5% over 360 months | $2,022.62 |
| Mortgage insurance | 20% down reaches 80% LTV | None (no PMI) |
With 20% down, the buyer pays $80,000 at closing, borrows $320,000, and owes $2,022.62 a month in principal and interest. Because the loan-to-value is exactly 80%, no private mortgage insurance is required. Over 30 years the total principal and interest paid is about $728,143, of which roughly $408,143 is interest — a reminder of how much a lower rate or a bigger down payment can save.
Minimum Down Payments by Loan Type in 2026
You do not need 20% down to buy a home. Several loan programs accept far less, each with its own trade-offs.
- FHA loans: 3.5% minimum with a credit score of 580 or higher. Borrowers with scores from 500 to 579 need 10% down. FHA loans are popular with first-time buyers because the credit and debt requirements are more forgiving, but they come with a mortgage insurance premium.
- Conventional loans: as low as 3% for qualified first-time buyers (and some repeat buyers) through programs such as Fannie Mae HomeReady and Freddie Mac Home Possible. Conventional loans with less than 20% down require private mortgage insurance.
- VA loans: 0% down for eligible veterans, active-duty service members, and surviving spouses, with no monthly mortgage insurance (a one-time funding fee usually applies).
- USDA loans: 0% down for eligible buyers in qualifying rural and suburban areas, subject to income limits, with an annual guarantee fee instead of PMI.
When Mortgage Insurance Applies, and When It Ends
Mortgage insurance protects the lender, not you, and it is charged when the lender takes on more risk — that is, when your down payment is small.
Conventional PMI is required when your down payment is below 20%, which means your loan-to-value is above 80%. You can generally request cancellation once you reach 20% equity in the home (80% LTV), and under the federal Homeowners Protection Act your lender must automatically terminate PMI once your loan balance falls to 78% of the home’s original value, provided you are current on payments.
FHA mortgage insurance premium (MIP) works differently. FHA loans charge an upfront premium plus an annual premium added to the monthly payment. When you put less than 10% down, the annual premium usually lasts for the life of the loan — it does not drop off at 20% equity. The usual way out is to refinance into a conventional loan once you have at least 20% equity. Buyers who put 10% or more down on an FHA loan pay the annual premium for 11 years.
Because of this difference, a buyer planning to stay in the home long term should compare the total cost of an FHA loan against a conventional loan with PMI, even when the FHA down payment looks smaller.
What the Monthly Figure Does Not Include
The monthly payment shown by this calculator is principal and interest only. Your real monthly housing payment will usually be higher, because most lenders collect property taxes and homeowners insurance with the mortgage payment (escrow), and add any mortgage insurance premium and HOA dues on top. Budget for the full PITI payment — principal, interest, taxes, and insurance — plus HOA fees, before deciding what you can afford.
