Down Payment Calculator
Find your down payment, loan amount and monthly principal and interest for a home price, and compare payments at 3.5%, 5%, 10% and 20% down. Example: 20% down on a $400,000 home is $80,000, leaving a $320,000 loan and a $2,022.62 monthly payment at 6.5% for 30 years.
Show steps
How to use the Down Payment Calculator
- Enter the home price and the down payment percentage.
- Enter the interest rate and loan term.
- Press Calculate for the loan amount, payment and a comparison of down payment sizes.
Formula and method
Down payment = price x percent down. Loan = price – down payment. Monthly payment = L x i / (1 – (1 + i)^-n), where i is the monthly rate and n the number of months. PMI is added when the down payment is under 20%.
Worked example: $400,000 home, 6.5%, 30 years
| Down payment | Amount down | Loan | Monthly P and I |
|---|---|---|---|
| 3.5% | $14,000.00 | $386,000.00 | $2,439.78 |
| 5% | $20,000.00 | $380,000.00 | $2,401.86 |
| 10% | $40,000.00 | $360,000.00 | $2,275.44 |
| 20% | $80,000.00 | $320,000.00 | $2,022.62 |
Why 20% down
A 20% down payment usually avoids private mortgage insurance, lowers the monthly payment and builds equity faster. Many loans allow less, such as 3.5% for FHA and 3% for some conventional programs.
Beyond the down payment
Plan for closing costs of about 2% to 5% of the price, a reserve for repairs and moving costs, and the ongoing property tax and insurance.
Frequently asked questions
How much down payment do I need?
Many loans allow 3% to 3.5%. 20% avoids PMI on conventional loans.
How do I calculate a down payment?
Multiply the home price by the percentage you plan to put down.
What is PMI?
Private mortgage insurance, charged when you put down less than 20% on a conventional loan.
Does a bigger down payment lower my rate?
It can, since lenders see less risk.
Are closing costs part of the down payment?
No, they are separate, typically 2% to 5% of the price.
How long does it take to save 20%?
Divide the target by your monthly savings.
Sources
Related calculators
Related to This Article
More math articles
- Top 10 Tips to ACE the CBEST Math Test
- Committee referral
- The Best Grade 4 ELA Practice Tests for Massachusetts Students
- Urbanization, Urban Growth, Suburbanization, and Metropolitan Regions
- Unemployment, Migration, Family Survival, and Depression Culture
- What Is the Highest Score for SHSAT Test?
- 5th Grade Common Core Math Worksheets: FREE & Printable
- Free Grade 5 English Worksheets for North Carolina Students
- Free Grade 6 English Worksheets for Arkansas Students
- Kansas KAP Grade 6 Math Free Worksheets: 72 Free Printable Worksheets with Step-by-Step Keys
What people say about "Down Payment Calculator: Loan, Monthly Payment & PMI"?
No one replied yet.