Calculate your down payment amount, loan amount, and monthly mortgage payment — and see if PMI applies.
Rates as of Q2 2025 (example)
A down payment calculator shows how much cash you'll need upfront for a home purchase based on the home price and your chosen down payment percentage, along with the resulting loan amount and monthly mortgage payment. It also flags whether Private Mortgage Insurance (PMI) applies, which is common when a down payment is below 20%.
The down payment amount is simply the home price multiplied by your chosen down payment percentage, and the loan amount is the home price minus the down payment. The monthly principal and interest payment is calculated using the standard mortgage formula M = P × [r(1+r)n] / [(1+r)n − 1]. If your down payment is below 20%, the calculator adds an estimated monthly PMI cost, calculated as the loan amount multiplied by the annual PMI rate, divided by 12.
Example: For a $350,000 home with a 10% down payment ($35,000), a $315,000 loan at a 6.5% interest rate (example rate — enter your actual rate) over 30 years, plus an example 0.5% PMI rate (since the down payment is below 20%), the monthly payment including PMI would be higher than the principal and interest alone. (Note: all figures in this example are for illustration purposes only and do not represent actual rates or market conditions.)
While 20% is often cited as a "standard" down payment, many US homebuyers put down significantly less — some conventional loans allow as little as 3-5% down, and certain government-backed loans (like FHA or VA loans) have their own minimum down payment rules. Putting down less than 20% on a conventional loan typically triggers Private Mortgage Insurance (PMI), an extra monthly cost that protects the lender and can usually be removed once you build enough equity. A larger down payment reduces your loan amount, monthly payment, total interest paid, and may help you avoid PMI altogether.
No. While 20% avoids PMI on a conventional loan, many loan programs allow much smaller down payments — some conventional loans allow 3-5% down, and government-backed loans like FHA or VA loans have their own minimum requirements.
Private Mortgage Insurance (PMI) is typically required on conventional loans when your down payment is below 20% of the home price. It protects the lender if you default and is usually charged as a monthly add-on to your mortgage payment.
No — it's an example only. PMI rates vary based on your down payment size, credit score, and loan type, and are set by the mortgage insurer. Use a quote from your lender for an accurate estimate.
Often, yes. PMI can typically be removed once your loan balance drops to around 80% of the home's original value, either through regular payments, extra payments, or home value appreciation — though the exact process depends on your lender and loan type.
A larger down payment reduces your loan amount, which lowers your monthly principal and interest payment and total interest paid over the life of the loan, and may also help you avoid PMI if it brings your down payment to 20% or more.
No — the default rate is an example only. Mortgage rates vary by lender, loan type, credit score, and market conditions, and change frequently, so use a rate from an actual lender quote.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. All rates and examples shown are sample values and do not reflect current or actual market rates. Financial rules and regulations change frequently. Always consult a qualified financial advisor or lender before making any financial decisions.