Mortgage Down Payment Calculator
Calculate the down payment amount and resulting mortgage loan amount from a home price and down payment percentage, with a PMI-avoidance check.
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Down Payment Amount
$40,000
Mortgage Loan Amount
$360,000
How the Mortgage Down Payment Calculator Works
Enter the home price and your target down payment percentage. The calculator shows the dollar amount you'll need upfront and the resulting mortgage loan amount you'll finance. It also flags whether your down payment reaches the 20% threshold that, on conventional US mortgages, typically avoids private mortgage insurance (PMI) — an added monthly cost lenders charge on smaller down payments to protect themselves against default risk.
Loan Amount = Home Price − Down Payment
Example
On a $400,000 home with a 10% down payment, you'd put down $40,000 and finance $360,000. That falls short of the 20% ($80,000) needed to avoid PMI, so the lender would likely add a PMI charge to the monthly payment until enough equity is built up. Putting down the full 20% instead avoids that extra cost entirely.
Common Use Cases
- Figuring out how much cash to save before buying a home.
- Checking whether a planned down payment clears the 20% PMI-avoidance threshold.
- Comparing loan amounts across different down payment percentages.
- Preparing figures for a mortgage pre-approval conversation.
FAQs
Why does 20% down avoid PMI?
On conventional US mortgages, lenders generally require private mortgage insurance when the down payment is below 20%, since a smaller down payment means more risk of loss if the borrower defaults. Once you reach 20% equity, PMI is typically not required (or can later be removed).
Can I still get a mortgage with less than 20% down?
Yes — many conventional loans allow down payments as low as 3-5%, and government-backed programs like FHA, VA, and USDA loans can require even less. You'll typically pay mortgage insurance until you build enough equity or refinance.
Does a bigger down payment always make financial sense?
Not necessarily. A larger down payment lowers your loan balance, monthly payment, and avoids PMI, but it also ties up more cash that could otherwise be used for emergencies, renovations, or other investments — weigh liquidity needs alongside the PMI savings.