Enter the home price, mortgage interest rate, and loan term. The calculator instantly shows a side-by-side comparison of 6 common down payment percentages (3%, 5%, 10%, 15%, 20%, 25%), including monthly payments, PMI estimates, and total interest for each scenario.

Cards with an amber PMI Required badge indicate down payments below 20%, where Private Mortgage Insurance adds to your monthly cost. The green No PMI badge marks the 20% threshold and above.

Your down payment is the portion of a home's purchase price that you pay upfront in cash. The remainder is financed through a mortgage. The size of your down payment has a significant impact on your monthly payment, total interest paid, and whether you'll need to pay PMI.

The 20% Rule and PMI

When you put less than 20% down on a conventional mortgage, lenders typically require Private Mortgage Insurance (PMI). PMI protects the lender (not you) in case you default. It typically costs 0.5%–1% of the loan amount annually and is added to your monthly payment. For a $380,000 loan, PMI could add $160–$320 per month. PMI is automatically removed once you reach 20% equity in most cases.

Low Down Payment Options

FHA loans allow down payments as low as 3.5% for borrowers with credit scores of 580+. VA loans (for veterans) and USDA loans (for rural areas) may require 0% down. Conventional loans from Fannie Mae and Freddie Mac allow as little as 3% down for first-time homebuyers.

The Case for a Larger Down Payment

A larger down payment reduces your loan amount, lowers your monthly payment, saves you from PMI, and can qualify you for a better interest rate. On a $400,000 home, going from 5% to 20% down saves roughly $280/month in mortgage payments alone, plus eliminates $200+/month in PMI — a combined savings of nearly $500/month.