Down Payment Calculator

A $350,000 home can require a down payment anywhere from $0 to $70,000 – depending on your loan program, credit profile, and whether you carry private mortgage insurance (PMI). Knowing that number early keeps your house hunt realistic and your finances on track. Our down payment calculator makes the math straightforward.

The calculator above lets you adjust the home price, down payment percentage (from 0% to 50%), and loan term. It instantly shows the cash down payment in dollars, the loan amount, and an estimated monthly payment – including PMI when your down payment is below 20%. You can also compare the long-term interest savings of a larger down payment.

This tool provides estimates only. Actual loan terms, PMI rates, and eligibility vary. Speak with a mortgage advisor for personalized quotes.

What Is a Down Payment and Why It Matters

A down payment is the cash a buyer pays when purchasing a home. It is expressed as a percentage of the purchase price and directly reduces the amount you borrow. For example, on a $400,000 property, a 10% down payment is $40,000, and the remaining $360,000 is financed through a mortgage.

Beyond shrinking the loan, a down payment builds instant equity and signals to lenders that you are financially committed. The size of your down payment influences your interest rate, monthly payment, and whether you must pay PMI. Even a modest increase can save thousands over the life of the loan.

How Much Down Payment Do You Need in 2026?

There is no single answer. Most conventional home loans require as little as 3% down, while FHA loans require 3.5% with a credit score of at least 580. VA and USDA loans offer 0% down for eligible borrowers.

The 20% threshold is not a universal rule – it is the level at which PMI is canceled on conventional loans. With a median existing-home price around $400,000 in early 2026, a 20% down payment equals $80,000. Many buyers choose a smaller down payment and pay PMI, preserving cash for emergencies, renovations, or investments.

• 3% down (Conventional 97): $12,000 on a $400,000 home; requires PMI.
• 3.5% down (FHA): $14,000; includes an upfront mortgage insurance premium and annual premiums.
• 0% down (VA/USDA): $0 down; VA loans have a funding fee; USDA loans require property in a qualified rural area.
• 10–20% down (Jumbo): Typically 10% to 20% for loan amounts above conforming limits, depending on lender.

The Impact of PMI on Your Monthly Payment

PMI protects the lender when the loan-to-value ratio exceeds 80%. Rates typically range from 0.5% to 1.5% of the original loan amount per year. On a $380,000 mortgage (5% down on a $400,000 home), a 0.85% annual PMI rate adds about $269 per month.

For the same home with 20% down, you avoid PMI entirely. The monthly savings are significant, but so is the upfront cash gap. The calculator above helps you weigh the trade-off: stretching to 20% can lower lifetime costs, while a smaller down payment may get you into a home years sooner.

Once your equity reaches 20%, you can request PMI cancellation on conventional loans, and it will typically terminate automatically when equity hits 22%.

Smart Strategies to Reach Your Down Payment Goal Faster

Reaching your down payment target may feel overwhelming, but a systematic approach makes it achievable:

• Automate savings. Open a dedicated high-yield savings account and schedule automatic transfers each payday. Even $200 per paycheck adds $5,200 a year.
• Trim high-interest debt. Reducing credit card balances frees up cash flow and improves your debt-to-income ratio, which helps you qualify for a better mortgage rate.
• Capture windfalls. Allocate tax refunds, bonuses, and cash gifts directly to your down payment fund.
• Explore down payment assistance. Many states, counties, and cities offer grants or deferred loans to first-time homebuyers. Eligibility often hinges on income and purchase price. Check with your state housing finance agency or a HUD-approved housing counselor for 2026 programs.
• Consider a first-time homebuyer program. Some lenders offer special mortgages with lower down payment requirements and flexible credit guidelines.

Use the calculator above to experiment with different savings targets. You might find that a 5% down payment is within reach this year, or that waiting another 12 months to reach 10% cuts your PMI costs by half. The right number is the one that fits your budget and long-term goals.