Softonic

Down Payment Calculator

Step 1 / 3 Down payment
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Homebuyers juggle home price, down payment percentage, loan-to-value and PMI thresholds at the same time. This calculator takes a home price and a down payment percentage and returns the resulting loan size, LTV, and whether PMI kicks in, so you can test scenarios against your savings before talking to a lender.

How to compute a down payment

  1. 1

    Enter the home price

    Listed price or your projected offer.

  2. 2

    Enter the down payment

    As a percentage of the home price (5%, 10%, 20%). Results update automatically.

  3. 3

    See the loan size and LTV

    Loan amount is price minus down payment; LTV is loan divided by price.

  4. 4

    Check PMI status

    The tool flags whether private mortgage insurance applies under conventional loan rules (LTV > 80%).

The core relationships

  • down payment = price * down_percent / 100
  • loan = price - down_payment
  • LTV = loan / price * 100

At 20 percent down, LTV is 80 percent. Conventional loans typically waive PMI at and below 80 percent LTV. FHA loans have different rules and carry mortgage insurance regardless of LTV until you refinance.

Down payment landmarks

Down % On a 400k home Loan size LTV PMI?
3.5% 14,000 386,000 96.5 Yes (FHA MIP)
5% 20,000 380,000 95.0 Yes (conventional)
10% 40,000 360,000 90.0 Yes
15% 60,000 340,000 85.0 Yes
20% 80,000 320,000 80.0 No (conventional)
25% 100,000 300,000 75.0 No
100% 400,000 0 0 No

What the down payment actually buys you

  • Lower monthly payment. A smaller loan at the same rate means a smaller P&I.
  • PMI avoidance. At 20 percent and below LTV on conventional loans.
  • Better rates. Some lenders offer lower rates at 25 percent or 40 percent down.
  • Negotiating leverage. Sellers view higher down payments as less risky.
  • Less equity risk. If home values drop, you are less likely to be underwater.

Closing costs are separate

The down payment is not the same as closing costs. Plan for an additional 2-5 percent of home price in closing costs (origination fees, title insurance, prepaid taxes and insurance, appraisal, inspections). On a 400k home, 8,000 to 20,000 on top of the down payment.

Special loan programs

  • VA loans for eligible veterans allow 0 percent down with no PMI.
  • USDA loans for rural areas allow 0 percent down with a similar fee.
  • FHA loans allow as little as 3.5 percent down with MIP that persists for the life of the loan in most cases.
  • Physician loans and other profession-specific products occasionally offer 0 or 5 percent down for high-earning professionals.

Low-down-payment loans trade upfront cash for higher monthly costs. Run the numbers both ways.

Frequently Asked Questions

It is the conventional threshold for avoiding PMI, not a legal requirement. The median first-time buyer in the US puts down 6-8 percent according to NAR data. Plenty of people buy with less; they just pay PMI or accept a higher monthly cost.

Your cash savings plus documented gift funds from family (subject to lender limits) and proceeds from selling assets. Lenders want a paper trail for every dollar; do not move large sums around right before closing.

Technically yes for many plans, up to $50,000 or 50 percent of balance. You pay yourself back with interest. The risk is losing the job while the loan is outstanding, which can trigger immediate repayment demands.

No. The numbers you enter are sent to our servers so the calculator can update the results, and may be added to the page link when you move between steps. The calculator itself does not store them.

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