Down Payment Calculator
Calculate how different down payment amounts affect your monthly mortgage, PMI, and total cost.
Home Details
Down Payment
$80.0K
20% of price
Monthly PITI
$2,646
No PMI!
Loan Amount
$320.0K
Amount financed
PMI
$0
No PMI at 20%+
Monthly Payment by Down Payment %
Down Payment Scenarios
| Down % | Down Amount | Loan Amount | P&I / mo | PMI / mo | Total / mo |
|---|---|---|---|---|---|
| 5% | $20.0K | $380.0K | $2,528 | $253 | $3,298 |
| 10% | $40.0K | $360.0K | $2,395 | $240 | $3,152 |
| 15% | $60.0K | $340.0K | $2,262 | $227 | $3,005 |
| 20% | $80.0K | $320.0K | $2,129 | None | $2,646 |
| 25% | $100.0K | $300.0K | $1,996 | None | $2,513 |
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Down Payment Calculator -- Complete USA Guide 2026
The free Down Payment Calculator shows you exactly how different down payment percentages affect your monthly mortgage payment, PMI requirement, total interest, and total cost of homeownership. Side-by-side comparison of 5%, 10%, 15%, 20%, and 25% down helps you make an informed decision about the most significant single cash outlay most Americans will ever make.
The down payment decision involves competing financial priorities: a larger down payment eliminates PMI and reduces interest cost, but depletes savings that could generate returns if invested. This calculator quantifies the tradeoffs so you can optimize based on your specific interest rate, investment return expectations, and cash position.
🔬 How This Calculator Works
For each down payment scenario (5%, 10%, 15%, 20%, 25%), the calculator computes: Down Payment Amount (purchase price times percentage), Loan Amount (purchase price minus down payment), Monthly P&I using amortization formula, Monthly PMI (loan amount times 0.8% divided by 12, only when down payment under 20%), Monthly Property Tax and Insurance (from your inputs), Total Monthly PITI, Total Interest over the loan term, and Total PMI cost until 80% LTV is reached.
📊 Side-by-Side Comparison
| Scenario | Result | Notes |
|---|---|---|
| 5% down on $400K | $20K down, $1,280 PMI/yr | FHA eligible, PMI required |
| 10% down on $400K | $40K down, $2,880 PMI/yr | PMI until 80% LTV (~10yr) |
| 15% down on $400K | $60K down, $272 PMI/yr | Lower PMI, ~4yr until cancel |
| 20% down on $400K | $80K down, no PMI | No PMI ever -- highest cash |
| 25% down on $400K | $100K down, no PMI | Best rate tier for investment props |
✅ What You Can Calculate
Side-by-Side Scenario Comparison
The comparison table shows all five down payment scenarios simultaneously -- the only way to make a truly informed down payment decision. Without this comparison, most buyers simply choose "20% to avoid PMI" without evaluating whether that's the optimal use of their capital given their interest rate and investment return expectations.
True PMI Cost Calculation
PMI at 0.8% of loan on a $350,000 home with 10% down ($315,000 loan): $210/month. Over the 10 years until 80% LTV is reached at typical 7% rate, total PMI paid: approximately $25,200. This concrete number helps buyers evaluate whether eliminating PMI justifies the larger down payment vs. investing the difference.
Monthly Payment Impact at Each Level
On a $400,000 home at 7% for 30 years: 5% down = $2,713/mo (incl. PMI); 10% down = $2,594/mo (incl. PMI); 20% down = $2,129/mo (no PMI). The $584/month difference between 5% and 20% down is significant -- but requires an extra $60,000 in cash upfront.
PMI Elimination Timeline
PMI doesn't last forever -- at 7% on a $350,000 purchase with 10% down, you reach 80% LTV (PMI cancellation eligible) after approximately 10 years. Knowing this timeline helps buyers who don't have 20% decide whether it's worth waiting to save more or buying now with PMI knowing the cost is temporary.
Break-Even Analysis Between Down Payment Options
The calculator implicitly shows the break-even between investing the down payment difference vs. saving PMI. If the additional $40,000 for 20% down (vs. 10%) saves $210/month in PMI and $60/month in interest ($270/month total), but that $40,000 invested at 7% earns $233/month -- the investment slightly outperforms the PMI savings, suggesting 10% down and investing the difference may be optimal.
FHA vs. Conventional Down Payment Decision
FHA loans allow 3.5% down with lower credit score requirements, but carry 1.75% upfront MIP and annual MIP that cannot be cancelled after 2022 (for most loans). Conventional PMI can be cancelled at 80% LTV. Entering 3.5% down for FHA comparison vs. 5% or 10% conventional helps first-time buyers evaluate the true cost of each path.
🎯 Real Scenarios & Use Cases
First-Time Buyers Deciding How Much to Save
The age-old question: save longer for 20% down or buy now with 10% and pay PMI? This calculator provides the exact dollar cost of both paths so you can factor in your local rent cost (often cheaper than ownership at current rates), how long it would take to save from 10% to 20%, and whether your investment account could grow the down payment difference faster than PMI drains it.
Evaluating PMI vs. Investment Returns
The opportunity cost of a larger down payment: the additional $50,000 for 20% vs. 10% down, invested in an index fund at 7% for 30 years, grows to $380,000. PMI on that same loan might cost $25,000-$30,000 total. The investment clearly wins long-term -- but requires accepting 10+ years of PMI and a higher monthly payment.
Gift Down Payment Optimization
Many first-time buyers receive down payment gifts from family. This calculator shows the optimal allocation: whether the gift is better used to reach 20% down (eliminating PMI forever) or to make a larger down payment within the 10-15% range and invest the rest.
Deciding Between Two Properties at Different Price Points
Can you afford a $425,000 home with 15% down vs. a $375,000 home with 20% down? Enter both scenarios to compare monthly PITI for each, including or excluding PMI, to find which property fits your budget after the true complete payment is modeled.
Piggybacking (80/10/10 Loan Structure)
The piggyback loan puts 10% down, finances 80% in a first mortgage, and finances the remaining 10% in a second mortgage or HELOC -- allowing you to avoid PMI without a 20% down payment. Model 10% down with PMI vs. an 80/10/10 structure where the second mortgage rate may be 8-9% to determine which is cheaper.
Investment Property Down Payment Planning
Investment properties typically require 25% down for the best rates, with 15-20% as the minimum. Use this calculator to model the payment, equity position, and interest cost for investment property scenarios where the down payment is typically larger and is expected to generate rental income offsetting the payment.
💡 Pro Tips for Accurate Results
Down payment optimization tips for 2026:
1. 20% eliminates PMI but the break-even vs. investing the difference at 7%+ return is often 15+ years -- meaning it's not always the optimal financial choice.
2. First-time buyer programs in many states allow 3-5% down with reduced or eliminated PMI, closing cost assistance, and below-market rates -- check your state housing finance agency.
3. USDA and VA loans at 0% down are available for eligible buyers -- no PMI on VA loans, reduced MIP on USDA.
4. The 28% PITI guideline (housing costs under 28% of gross monthly income) should be checked at each down payment scenario, not just the one you're planning.
5. Always keep 3-6 months of expenses in emergency savings after the down payment -- depleting your emergency fund for a larger down payment creates dangerous financial fragility.
📌 Did You Know?
Fact #1
The median first-time homebuyer down payment in 2025 was 9% (National Association of Realtors).
Fact #2
PMI typically costs 0.5-1.5% of the loan amount annually and must be cancelled at 78% LTV by law.
Fact #3
FHA loans require as little as 3.5% down but carry annual MIP that cannot be cancelled on most post-2013 loans.
Fact #4
VA loans for eligible veterans require 0% down with no PMI requirement -- the best down payment terms available.
🏁 Bottom Line
The down payment decision is one of the most significant financial choices in homeownership, and it deserves more analysis than simply "put 20% down to avoid PMI." Run each scenario, compare the monthly payment difference, quantify the PMI cost, and weigh it against what the additional cash could earn if invested. The right answer depends on your mortgage rate, your investment return expectations, your cash reserves, and your financial goals -- and this calculator gives you the numbers to make that decision confidently.
Frequently Asked Questions
You need at least 20% down to avoid PMI (Private Mortgage Insurance) on a conventional loan. On a $400,000 home: 20% = $80,000. PMI typically costs 0.5-1.5% of the loan annually ($167-$500/month on a $400,000 loan). The break-even calculation: if you have $80,000, it usually makes more sense to put it as 20% down than to invest it and pay PMI -- especially at current interest rates.
Expert Guide
Want to understand the maths behind this calculator?
Our in-depth guide explains every formula, shows worked examples, and helps you make smarter financial decisions.
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