Down Payment Calculator
See how 3%, 3.5%, 5%, 10%, and 20% down change your loan amount, estimated monthly payment, LTV, and PMI — with a real-budget method that normal people can actually use.
What you’ll learn
- How much a down payment actually changes your loan and payment
- When 20% down is great — and when it is not necessary
- How PMI, LTV, and cash-to-close fit into the decision
Best tools inside
- Interactive down payment calculator
- Instant comparison table for common down payment options
- Fast links to your mortgage planning tools
Best for
- First-time homebuyers
- People choosing between lower down vs. keeping more cash
- Anyone trying to build a realistic mortgage budget
Down Payment Calculator
Use the percentage field for a normal comparison. If you enter a custom dollar amount, the calculator will use that instead. The payment estimate includes principal, interest, taxes, insurance, PMI, and HOA when applicable.
Compare common down payment options
| Down | Cash down | Loan amount | LTV | Est. PMI | Est. total monthly payment |
|---|
Planning note: this comparison uses the same price, rate, taxes, insurance, PMI setting, and HOA values from the calculator above.
How down payments work in plain English
Your down payment is the part of the home price you pay up front instead of borrowing. If the home costs $350,000 and you put down 10% ($35,000), your loan amount starts around $315,000 before any financed costs or credits.
That one decision changes a lot:
- your loan amount
- your monthly payment
- your loan-to-value ratio (LTV)
- whether you will likely pay PMI
- how much cash you still have left for emergencies, repairs, and move-in costs
Official guidance is clear on the basics: many buyers can get a home with less than 20% down, but low-down-payment options usually come with tradeoffs such as PMI, higher loan balances, or higher total loan costs over time. The right answer is not “always put 20% down.” The right answer is “put down what helps you buy safely without making the rest of your money life fragile.”
The most common down payment options
3% down
Common on some conventional programs. This is the lightest cash hit up front, but it also means the biggest loan amount, the highest LTV, and usually PMI.
3.5% down
Common FHA starting point. This can help buyers with limited savings, but it does not mean the total cost will always be lower. Always compare the full monthly payment and total cash needed.
5% down
A common “middle lane” for buyers who want a smaller upfront cash hit but a little more breathing room than the minimum.
10% down
This is where many buyers start seeing cleaner numbers: lower loan balance, lower PMI cost, and better monthly breathing room than the minimum-down options.
20% down
The old-school target. This often avoids PMI on conventional loans and lowers the payment the most, but it is not required for many buyers.
Custom amount
Sometimes the best answer is not a round number. It may be “whatever still leaves me with a real emergency fund after closing.”
In most cases, CFPB says you need at least 3% down for your target home price, many loans and lenders require 5% or more, FHA can work with as little as 3.5% down, and conventional loans backed by Fannie Mae or Freddie Mac can require as little as 3% down. CFPB also notes that lower down payment options can mean higher costs over the life of the loan.
How to decide what to put down
1) Start with your real monthly budget
Before you obsess over whether 5% or 10% is “better,” make sure the payment fits your real life. Use the Mortgage Affordability Calculator and the How Much House Can I Afford? guide first.
2) Protect your emergency fund
If putting 20% down empties your reserves, that can be a bad trade. CFPB explicitly tells buyers to leave room for moving costs, utility setup, repairs, furniture, and a cushion for higher-than-expected costs.
3) Compare the payment change, not just the percentage
Many buyers assume every extra dollar down creates huge monthly savings. Sometimes it does. Sometimes it only trims the payment a little compared with the amount of cash you are giving up. Use the calculator above to compare the real monthly difference.
4) Think about PMI and LTV
If you put down less than 20%, you will usually deal with PMI or a program with a different insurance structure. Your LTV ratio is part of that story. Lower LTV generally means lower risk to the lender and better pricing for you.
5) Check whether help is available
Fannie Mae and Freddie Mac both highlight down payment assistance resources, and Freddie Mac specifically points buyers to state and local assistance options plus DPA One. If your savings are close but not quite there, assistance programs can matter a lot.
Mistakes to avoid
Thinking you must have 20% down
You often do not. Freddie Mac says down payments can be as low as 3%, and CFPB points to low- and no-down-payment options for some borrowers.
Ignoring the rest of cash to close
Your down payment is not the whole check. You still need to think about prepaids, escrows, lender fees, title work, and the rest of your cash to close.
Putting too much down and becoming house-poor
Owning a home with no cash cushion is not a flex. It is a risk.
Not comparing loan options
CFPB recommends asking lenders to show multiple choices. The lowest-down-payment option is not automatically the best option.
Forgetting how credit changes the picture
Your credit can affect pricing, PMI costs, and available loan paths. If you need work here first, use How to Improve Your Credit Score Fast for Home Buying.
Vetted sources behind this page
- CFPB: Determine your down payment
- CFPB: What kind of down payment do I need?
- CFPB: Figure out how much you want to spend
- HUD: FHA loans and low down payments
- Freddie Mac: Down payments & PMI
- Freddie Mac: Down payment assistance programs
- Fannie Mae: Down payment and closing cost assistance
Use official sources for rules and planning. Use your lender’s Loan Estimate and Closing Disclosure for the exact numbers on your deal.
Best tools + best videos
Best next tools on Up From Zero
Planned next reads
Home Buying Simplified
A solid plain-English walkthrough if you want the bigger homebuying sequence around your down payment decision.
Freddie Mac DPA One
Useful if you want to learn how buyers and lenders search for down payment assistance programs.
FAQ
Do I need 20% down to buy a house?
No. Many buyers do not. Conventional loans can sometimes work with as little as 3% down, and FHA loans can work with as little as 3.5% down. The tradeoff is that lower down payments usually mean higher loan costs and often PMI or another insurance structure.
Is 3% down a bad idea?
Not automatically. It can be completely reasonable if the monthly payment fits, your credit is solid enough for the program, and you still keep reserves after closing. It becomes a bad idea when it stretches the budget too tight.
What is a “good” down payment?
A good down payment is one that helps you buy safely. For many people, that means enough to keep the payment manageable while still leaving an emergency fund and enough cash to handle moving, repairs, and normal life.
Does a bigger down payment always lower the interest rate?
Not always in a dramatic way, but CFPB says lenders often look at down payment increments of 5% when pricing the loan, and larger down payments generally improve your costs and approval odds.
What happens if I put less than 20% down?
On many conventional loans, you will usually pay PMI until you build enough equity. FHA and some other programs have their own insurance rules and costs. That is why it helps to compare the full monthly payment, not just the headline rate.
Next steps + internal links
How to Use This Calculator
Enter the home purchase price and your target down payment percentage. The calculator shows your dollar amount, estimated monthly PMI if you put down less than 20%, and how different down payment levels affect your monthly payment.
Realistic Example
Home price: $275,000. At 5% down: $13,750 upfront. At 20% down: $55,000 upfront. The 5% option costs $41,250 less upfront but adds approximately $80–$120 per month in PMI until you reach 20% equity. Run both scenarios to see which makes more sense for your cash situation.
Assumptions and Limitations
- PMI estimates assume a conventional loan with standard lender-placed PMI. FHA loans have different mortgage insurance premium (MIP) rules and costs.
- VA and USDA loans require $0 down — if you qualify, those change the math entirely.
- Down payment assistance programs can reduce required cash significantly. Check your state’s Housing Finance Agency (HFA) programs.
- Gift funds from family members can count toward your down payment on most loan types.
Disclaimer: This calculator is for educational purposes only and does not constitute financial or mortgage advice. Consult a licensed mortgage professional before making home purchase decisions.
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