Payoff Logic

Down Payment Calculator

Every down-payment tier from 3.5% to 20% on your target home: cash needed (closing costs included), monthly payment, PMI — and which tier your savings cover today. Free, no signup.

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Assumes a 30-year loan, 0.5%/yr PMI when under 20% down, and ~3% of price in closing costs (varies by state and lender).

Down payment scenarios

DownCash needed*P&I / moPMI / moTotal / mo

*Down payment + ~3% closing costs. Highlighted = the largest down payment your savings cover.

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Thinking in tiers, not targets

The useful question isn't "how much should I put down?" — it's "what does each tier buy me?" Each step up saves monthly cost (smaller loan, cheaper or no PMI) but costs liquidity. The two tiers that matter most: whatever gets you into the market safely, and 20%, where PMI ends. Between them, favor the emergency fund. Full monthly detail lives in the mortgage calculator (taxes and insurance included), PMI timing in the PMI calculator, and zero-down programs in the VA calculator.

Frequently asked questions

How much down payment do I need for a house?

Program minimums: 3% (some conventional first-time programs), 3.5% (FHA), 5–10% (typical conventional), 0% (VA and USDA if eligible). 20% is not required — it’s the threshold where conventional PMI disappears. The table above prices every tier on your target home.

Is 20% down always best?

No. Reaching 20% removes PMI and lowers the payment, but draining savings to hit it can leave you without an emergency fund — a worse position than paying $100–$200/month of PMI. Compare the total monthly column against your remaining cash cushion.

What else do I need cash for at closing?

Closing costs run roughly 2–5% of the price (we estimate 3%): lender fees, title, escrow prepaids, and inspections. That’s why the "cash needed" column is more than the down payment — the number that actually gates your purchase.

Can my down payment be a gift?

Yes — conventional, FHA, and VA all allow gift funds from relatives with a signed gift letter and paper trail. Lenders verify the source, so move the money early and keep records.

What are down payment assistance programs?

State and local programs offer grants or second loans (often forgivable over 5–10 years) for eligible first-time buyers, typically with income and price caps. Your state housing finance agency lists them — worth 15 minutes before assuming a tier is out of reach.

How does the down payment change PMI?

Two ways: below 20%, a bigger down payment lowers the PMI rate tier AND shortens the months until PMI auto-cancels at 78% loan-to-value. Model removal timing in the PMI calculator.

Related calculators

  • Mortgage Calculator — Estimate your full monthly payment — principal, interest, property taxes, insurance, PMI, and HOA — with a complete amortization schedule.
  • PMI Calculator — Your monthly PMI, the exact month it cancels at 78% LTV, and how extra payments remove it sooner.
  • Home Affordability Calculator — How much house can you afford? Income, debts, and the 28/36 rule turned into a real price range.
  • FHA Loan Calculator — FHA payment with both MIP charges included — upfront 1.75% and the annual premium, with the 11-year rule.

Disclaimer: Educational purposes only — not financial advice. PMI rates and closing costs vary by lender, credit, and state. See our Terms of Use.