Down Payment Calculator

Last updated July 2, 2026

The down payment percentage shapes almost every financial dimension of a home purchase: the loan amount, the interest rate you qualify for, whether you pay private mortgage insurance, and how long it takes to build meaningful equity. The conventional benchmark is 20 percent — enough to avoid PMI and qualify for better rates — but the median down payment for first-time buyers in the United States has consistently run between 6 and 8 percent, according to National Association of Realtors data. Many loan programs accommodate even less: FHA loans require 3.5 percent, conventional loans through Fannie Mae and Freddie Mac can go as low as 3 percent, and VA and USDA loans require no down payment at all for qualified borrowers.

PMI is the cost of putting down less than 20 percent on a conventional loan. It typically runs 0.46 to 1.5 percent of the loan amount annually, paid monthly until you've built 20 percent equity. On a $400,000 home with 10 percent down, PMI might cost $150 to $300 per month — a real but temporary expense that expires automatically once equity reaches 22 percent. The down payment calculation also needs to account for what stays in the bank: depleting savings to reach 20 percent and having nothing left for closing costs, moving expenses, or the inevitable first-year homeownership surprises is a common and painful mistake. Financial planners generally suggest keeping three to six months of living expenses liquid after the down payment and closing costs clear.

The right down payment is the one that avoids PMI if possible, keeps you financially stable afterward, and doesn't delay the purchase by years while you save for an arbitrary threshold. Calculate the total cash needed — down payment plus closing costs plus reserves — not just the down payment alone.