Advanced Down Payment Calculator

See how your down payment impacts your loan, monthly costs, and savings timeline.

Purchase Details
Loan Assumptions
Advanced Features

Down Payment Savings Goal

Optional Annual Costs

Down Payment

$0

Loan Amount

$0

Total Monthly Payment

$0

Loan Breakdown

Payment & Ratio Details

Principal & Interest (P&I)

$0

Taxes & Insurance

$0

Loan-to-Value (LTV) Ratio ? The percentage of the home's price that is covered by the loan. Lenders use this to assess risk.

0%

Estimated Closing Costs (2-5%)

$0

Quick Loan Comparison

Switching to a 15-year term could change your payment and savings:

New 15-Yr Payment

$0

Total Interest Saved

$0

Ready for the next step?

See how this down payment fits into your overall budget with our full affordability analysis.

Go to the Affordability Calculator →

How This Calculator Works: The Formulas

This calculator uses a combination of basic arithmetic and standard financial formulas to estimate your payments and savings. Here’s a transparent look at the logic.

1 Core Loan & Payment Formulas

The calculator first determines your loan amount and then your monthly payment for Principal & Interest (P&I).

  • Loan Amount = Home Price - (Home Price * (Down Payment % / 100))
  • P&I Payment (M)

    Calculated using the standard PMT formula from `js/utils.js`:

    M = P * [r(1+r)^n] / [(1+r)^n - 1]
    • P = Loan Amount
    • r = Monthly Interest Rate (Annual Rate / 12 / 100)
    • n = Total Payments (Loan Term in Years * 12)

2 Total Monthly Payment & PMI Estimation

Your total payment includes more than just P&I. We also estimate your PMI (if applicable).

  • Loan-to-Value (LTV) % = (Loan Amount / Home Price) * 100
  • PMI Payment (Estimated)

    PMI is estimated if your LTV is over 80% and the loan is "Conventional".

    PMI = (Loan Amount * 0.005) / 12

    (This uses a common estimate of 0.5% of the loan amount per year).

  • Total Monthly Payment = P&I Payment + (Annual Taxes / 12) + (Annual Insurance / 12) + PMI Payment

3 Advanced Feature Formulas

  • Savings Goal Amount to Save = (Home Price * (Target DP % / 100)) - Current Down Payment Months to Save = Amount to Save / Monthly Savings
  • 15-Year Loan Comparison

    The calculator runs the PMT formula again with `n = 180` (15 years) to find the new payment. It then calculates the total interest for both loans to find your savings.

    Interest Saved = Total Interest (30-Yr) - Total Interest (15-Yr)

A Guide to Understanding Your Home Down Payment

What is a Down Payment?

A down payment is the initial, upfront portion of a home's purchase price that you pay out-of-pocket. It's not part of the mortgage loan. Think of it as your initial investment in your property. The size of your down payment directly impacts your loan amount, your monthly payment, and the terms your lender will offer you. Using a down payment calculator like this one is the first step in understanding these connections.

How Much Down Payment Do I Need?

This is the most common question for first-time buyers. While the "20% rule" is well-known, it's not always a strict requirement. Here's a breakdown of your options:

  • The 20% Standard: Putting down 20% is the gold standard because it allows you to avoid Private Mortgage Insurance (PMI), a costly extra monthly fee.
  • Low Down Payment Loans: Many loan programs are designed for first-time buyers. FHA loans require as little as 3.5% down, while some conventional loans allow for 3-5%. VA and USDA loans can even be 0% down if you qualify.

Our home down payment estimator lets you toggle between percentage and dollar amounts to see what works for your savings.

Benefits of a Larger Down Payment

While saving can be tough, a larger down payment has significant long-term benefits:

  • Lower Monthly Payment: You're borrowing less money, which directly reduces your monthly mortgage payment.
  • Avoid PMI: As mentioned, a down payment of 20% or more means you won't have to pay for Private Mortgage Insurance.
  • Build Equity Faster: You start with a larger ownership stake in your home from day one.
  • Better Interest Rates: A higher down payment reduces the lender's risk, which can often qualify you for a lower interest rate, saving you money for years to come.

See the Big Picture

Wondering how your down payment fits into your total buying power? Our Affordability Calculator helps you connect the dots between your savings, income, and dream home price.

Frequently Asked Questions

1

How much should I put down on a house?

While 20% is the traditional goal to avoid Private Mortgage Insurance (PMI) and secure better loan terms, it is not always required. Many first-time buyers use programs like FHA loans (3.5% down) or conventional loans (3-5% down). The right amount depends on your savings, the loan type you qualify for, and your comfort with the monthly payment.

2

What is the minimum down payment for a mortgage?

The minimum down payment depends on the loan type. VA and USDA loans can be 0% for eligible borrowers. FHA loans require as little as 3.5% down. Some conventional loan programs for first-time homebuyers offer 3% down options. Our mortgage down payment calculator can help you model these different scenarios.

3

Do I need 20% down to avoid PMI?

For conventional loans, yes. A down payment of less than 20% (resulting in a Loan-to-Value ratio over 80%) typically requires you to pay Private Mortgage Insurance (PMI). This is an extra monthly fee that protects the lender. Government-backed loans like VA do not have PMI, and FHA loans have their own form of mortgage insurance.

4

Does a higher down payment lower my monthly payment?

Yes, absolutely. A higher down payment means you are borrowing less money, which directly reduces the principal and interest portion of your monthly payment. It can also help you avoid PMI, further lowering your total monthly housing cost.

5

What’s included in a mortgage payment besides principal and interest?

Your total monthly housing payment is often called 'PITI.' It includes Principal, Interest, Taxes (property taxes), and Insurance (homeowner's insurance). Your lender often collects the tax and insurance portions in an escrow account and pays them on your behalf. Our main Mortgage Calculator allows you to input all these costs for a complete picture.