How this down payment calculator works
A down payment is the cash you pay up front toward a home purchase, with the rest covered by your mortgage. It is usually quoted as a percentage of the home price. This tool works two ways: enter a percentage to find the down payment amount, or enter a fixed amount to find the percentage it represents.
The math is simple. When you know the percent, the down payment is price × (percent ÷ 100). When you know the amount, the percentage is (down payment ÷ price) × 100. Either way, the loan amount is the home price minus the down payment, because the loan covers whatever you do not pay in cash.
Common down payment levels are 3%, 3.5% on FHA loans, 5%, 10% and 20%. A down payment below 20% on a conventional loan typically requires private mortgage insurance (PMI), an added monthly cost; reaching 20% usually avoids it. This tool flags when your down payment is under 20% but does not calculate the PMI amount itself.
Common down payment levels
| Down payment | On a $350,000 home | Loan amount | PMI on conventional loan |
|---|---|---|---|
| 3% | $10,500 | $339,500 | Typically required |
| 3.5% (FHA) | $12,250 | $337,750 | FHA mortgage insurance applies |
| 5% | $17,500 | $332,500 | Typically required |
| 10% | $35,000 | $315,000 | Typically required |
| 20% | $70,000 | $280,000 | Generally avoided |
Reference note: figures are estimates and currency is shown in US dollars. They do not include closing costs, PMI premiums, taxes, insurance or other fees, and loan-program rules vary by lender. This is general math, not a loan offer or financial advice.
Frequently asked questions
- How much down payment do I need?
- There is no single required amount. Many conventional loans accept as little as 3% down, FHA loans often allow 3.5%, and others reach 5% or 10%, while 20% usually avoids private mortgage insurance. The right amount depends on your savings, loan program and budget. This is general information, not advice.
- What is a typical down payment?
- Common levels are 3%, 3.5% on FHA loans, 5%, 10% and 20% of the home price. Twenty percent is widely referenced because it can avoid PMI on conventional loans, but many buyers, especially first-time buyers, put down less.
- What is PMI and the 20% rule?
- Private mortgage insurance (PMI) is an extra cost lenders often require on conventional loans when the down payment is under 20% of the home price. Putting down at least 20% generally avoids PMI. This tool flags a down payment under 20% but does not compute the PMI cost.
- How do I calculate the loan amount?
- Subtract the down payment from the home price. For example, on a $350,000 home with a $70,000 down payment, the loan amount is $280,000. The down payment percentage is the down payment divided by the home price, times 100.
- Is a bigger down payment better?
- A larger down payment lowers the loan, can avoid PMI at 20% or more, and usually reduces the monthly payment and total interest. But it also ties up cash you might need elsewhere. The best choice depends on your full financial picture.
- Is this financial advice?
- No. This is a neutral math tool that estimates a down payment, loan amount and percentage. It is general information only, not a loan offer, quote or financial advice. Confirm real figures with a qualified professional before deciding.