Loan Down Payment Calculator
The down payment is only part of the cash a home actually takes. Enter a price and a down payment — as a percent or a dollar figure, whichever way you think in — and see the loan amount, whether PMI will apply, closing costs, and the true total cash to close.
How it works
Down payment percent × price gives the cash down; price minus that is the loan. PMI (private mortgage insurance) is the tripwire: on a conventional loan, putting down under 20% means paying a monthly insurance premium that protects the lender, not you, until you reach roughly 20% equity. Closing costs are estimated as a percent of price (2–5% is the honest range), and the total cash to close is down payment + closing costs — the number your bank account actually needs.
Formula & worked example
Formula: Down payment = home price × percent down. Loan amount = price − down payment. Closing costs are estimated at 2–5% of the price, and total cash to close = down payment + closing costs. Below 20% down, a conventional loan also carries PMI (private mortgage insurance).
Worked example: A $400,000 home with 10% down: $40,000 down, a $360,000 loan, and closing costs around $12,000 at 3% — about $52,000 total cash to close, plus PMI because the down payment is under 20%. At 20% down the PMI disappears.
Frequently asked questions
How much cash do I need for a $400,000 home with 10% down?
The down payment is $40,000. Add closing costs at a typical 3% — $12,000 — and the total cash to close is about $52,000, on a $360,000 loan. And because 10% is under the 20% line, expect PMI on top of the monthly payment until you build equity.
Why is 20% down such a big deal?
It is the PMI threshold for conventional loans. Below it you pay private mortgage insurance — commonly 0.5–1% of the loan per year, billed monthly — for coverage that protects the lender. On a $360,000 loan that can be $150–$300 a month that builds you nothing.
Is it always smart to put 20% down?
Not always: draining every account to dodge PMI leaves nothing for moving, repairs or emergencies, and some buyers come out ahead investing the difference. The honest comparison is PMI cost versus what the extra cash earns or protects elsewhere — the numbers above let you see the actual size of both.
What counts as closing costs?
Lender origination and processing fees, appraisal, credit report, title search and insurance, recording fees, plus prepaids — a year of homeowners insurance and several months of property taxes held in escrow. Budget 2–5% of the price; sellers sometimes cover part of it as a negotiated credit.
🏦 Got the cash figured out?
The Mortgage Calculator turns that loan amount into a monthly payment, total interest and a payoff schedule.