Down Payment Calculator
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What Your Result Means
- Down payment amount: The cash you bring to the closing table. A larger down payment reduces your loan balance, lowers monthly payments, and may eliminate the need for private mortgage insurance (PMI).
- Loan amount: The principal you borrow after subtracting the down payment. This is the balance on which interest accrues over the life of the loan.
- Monthly payment: The principal-and-interest portion of your mortgage bill. Your actual monthly housing cost will also include property taxes, homeowners insurance, and possibly PMI or HOA dues.
- Total interest: The cumulative interest paid if you hold the loan to full term without extra payments. Even a small rate reduction or a slightly larger down payment can save tens of thousands of dollars in interest.
How This Calculator Works
You enter a home price, down payment percentage, loan term, and interest rate. The tool subtracts the down payment from the home price to get the loan amount, then applies the standard fixed-rate amortization formula to compute the monthly payment and total interest. It assumes a fixed rate for the full term and does not include taxes, insurance, or PMI.
Quick Questions
How much should I put down on a house?
The traditional benchmark is 20%, which typically avoids PMI and secures a better interest rate. However, many programs (FHA, VA, USDA) allow 0–3.5% down. The right amount depends on your savings, monthly budget, and how much PMI costs relative to a larger down payment.
What is PMI and when is it required?
Private Mortgage Insurance protects the lender if you default. Conventional lenders generally require it when the down payment is less than 20%. PMI typically costs 0.5–1% of the loan amount per year and can be removed once you reach 20% equity.
Does a bigger down payment always save money?
A bigger down payment reduces your loan balance and total interest, and it may eliminate PMI. However, it also ties up more cash. If your savings earn a higher return elsewhere (or you need an emergency fund), a smaller down payment might be the better financial choice. Consult a financial advisor for your situation.
Are closing costs included in this estimate?
No. Closing costs (typically 2–5% of the home price) are separate from the down payment. Budget for both when planning a home purchase.
What interest rate should I use?
Use the rate quoted by your lender or a current market average. Rates depend on your credit score, loan type, down payment size, and market conditions. Even a 0.25% difference can change your total interest by thousands over 30 years.
Sources
- Consumer Financial Protection Bureau — Owning a Home (down payment guidance, PMI rules, and mortgage basics)
- HUD — Buying a Home (federal homebuyer resources and FHA program details)
- Freddie Mac — Primary Mortgage Market Survey (current average mortgage rates)
Method & review
Estimate only. Results reflect your inputs and standard formulas. Double-check important decisions independently.