mCalculator logo
Mortgage Calculators

Down Payment Calculator

Calculate the down payment, loan amount, and loan-to-value ratio for any home price — and see how far you are from the 20% threshold that avoids PMI.

Uses the standard loan-to-value definition lenders apply for conventional mortgages.

$
%
Down payment
$60,000
That's 15.0% down on a $400,000 home — financing $340,000 at 85.0% LTV.
Loan amount
$340,000
Loan-to-value (LTV)
85.0%
PMI required?
Yes (LTV > 80%)
Cash to reach 20% down
$20,000
Explain this result

Turn the numbers above into plain-language takeaways. Educational only — not financial advice.

Save & Compare Scenarios

Save the current inputs under a name, then reload or compare them side by side. Scenarios stay on this device only.

Overview

How the Down Payment Calculator Works

The down payment is the cash you pay upfront against the home price. The rest is financed. This calculator lets you switch between a dollar amount and a percentage, then shows the resulting loan size, loan-to-value (LTV) ratio, and whether you'll cross the 20% line where private mortgage insurance (PMI) is normally required.

Formula

The Math Behind the Calculator

Down payment % = (Down payment ÷ Home price) × 100. Loan amount = Home price − Down payment. LTV % = (Loan amount ÷ Home price) × 100. PMI is generally required on conventional loans when LTV exceeds 80% (down payment less than 20%).

Example

A Worked Example

On a $400,000 home with a $60,000 down payment, you're putting 15% down and financing $340,000 — an 85% LTV. To avoid PMI you'd need to put down $80,000 (20%), a $20,000 gap.

How to use

How to Use the Down Payment Calculator

  1. 1Enter the target home price.
  2. 2Choose whether you want to enter a dollar amount or a percentage.
  3. 3Read the resulting loan size, LTV, and PMI status.
  4. 4If the PMI gap is small, consider whether saving a few more months is worth avoiding years of PMI premiums.
Interpretation

What the Results Mean

  • Loan amount is what you'll actually borrow and pay interest on.
  • LTV % tells you how risky the loan looks to the lender — lower is better and usually unlocks better rates.
  • If PMI is required, you'll pay roughly 0.3%–1.5% of the loan balance per year until you reach 20% equity.
Keep exploring

Smart Next Steps

What to explore next
Avoid

Common Mistakes to Avoid

  • Putting every available dollar into the down payment and leaving no emergency fund.
  • Targeting 20% down on an expensive home when an FHA or conventional loan with PMI would let you buy years earlier.
  • Forgetting that closing costs (typically 2–5% of price) are paid on top of the down payment.
Keep going

Related Calculators

Mortgage Payment Calculator

Estimate your monthly mortgage payment including principal, interest, property taxes, insurance, HOA, and PMI.

PMI Calculator

Estimate the monthly cost of private mortgage insurance for a low-down-payment conventional loan, and when it auto-cancels.

Mortgage Affordability Calculator

See the maximum home price you can responsibly afford based on income, debts, down payment, and current rates.

Closing Cost Calculator

Estimate the upfront closing costs and total cash to close on a home — lender fees, title and escrow, prepaid taxes and insurance, recording, and custom line items.

FAQ

Frequently Asked Questions

Do I need to put 20% down?+

No. Conventional loans accept as little as 3% down with PMI; FHA loans allow 3.5%; VA and USDA loans can require 0%. 20% simply avoids PMI.

Does a bigger down payment lower my rate?+

Often yes — many lenders price loans in LTV tiers, so dropping from 90% to 80% or 80% to 75% can earn a slightly lower rate.

What counts toward the down payment?+

Your own savings, documented gifts from family, and certain down-payment-assistance programs. Borrowed funds usually don't qualify.

Financial Disclaimer

This calculator is for educational and estimation purposes only. It does not provide financial, mortgage, tax, investment, or legal advice. Actual rates, payments, taxes, fees, insurance costs, eligibility, and loan terms vary by lender, location, credit profile, and market conditions. Always compare official offers and consult a qualified professional before making financial decisions.

Last updated June 2026 · Prepared by the mCalculator Editorial Team