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Down Payment Calculator: How Much to Put Down on a House

See your down payment, loan amount and PMI at every level — and what it takes to reach the 20% mark.

Updated July 23, 2026More mortgage tools

Your numbers

The home

As a percentage of the price.

Roughly 2–5% of the price, due at closing.

Down payment

$40,000

10% of $400,000.

Loan amount
$360,000
Loan-to-value
90%
Monthly PMI
$165
Cash needed at closing
$52,000

Down payment plus closing costs.

To reach 20%
$40,000
Closing costs
$12,000

3% of price.

Where it goes

  • Down payment10%
  • Loan amount90%

Down payment scenarios

Down %Down paymentLoan amountLTVMonthly PMI
3%$12,000$388,00097%$178
5%$20,000$380,00095%$174
10%$40,000$360,00090%$165
15%$60,000$340,00085%$156
20%$80,000$320,00080%None

Your personalized analysis

Summary

A 10% down payment is $40,000

On a $400,000 home, putting 10% down means $40,000 toward the purchase and a $360,000 loan — a 90% loan-to-value ratio. Add roughly $12,000 in closing costs and you'd need about $52,000 in cash at closing.

Watch out$1,980/yr in PMI

Under 20% down adds $165 a month in PMI

Because your down payment is below 20%, you'd pay private mortgage insurance of about $165 a month — roughly $1,980 a year that protects the lender, not you. You'd need $40,000 more to reach 20% and avoid it. PMI can be removed later once you build 20% equity, but avoiding it upfront saves money from day one.

Opportunity

A bigger down payment isn't always the best use of cash

More down means a smaller loan and less interest, but it also ties up cash you can't easily get back. If putting 20% down would empty your emergency fund, a smaller down payment with PMI is often the safer choice — you can remove PMI later, but you can't easily recover a down payment. Balance avoiding PMI against keeping a cushion.

Next step

See the full monthly payment at this down payment

Your down payment sets the loan size, but the monthly payment also depends on rate, taxes and insurance. Run this loan through the mortgage calculator to see the complete PITI payment.

Mortgage calculator

Example calculations

Worked scenarios with the full analysis, so you can see how the numbers move before entering your own.

10% down on a $400,000 home

A common first-time-buyer down payment that keeps cash in reserve but adds PMI.

Down payment

$40,000

Loan amount
$360,000
Loan-to-value
90%
Monthly PMI
$165
Cash needed at closing
$52,000
To reach 20%
$40,000
Closing costs
$12,000
Summary

A 10% down payment is $40,000

On a $400,000 home, putting 10% down means $40,000 toward the purchase and a $360,000 loan — a 90% loan-to-value ratio. Add roughly $12,000 in closing costs and you'd need about $52,000 in cash at closing.

Watch out$1,980/yr in PMI

Under 20% down adds $165 a month in PMI

Because your down payment is below 20%, you'd pay private mortgage insurance of about $165 a month — roughly $1,980 a year that protects the lender, not you. You'd need $40,000 more to reach 20% and avoid it. PMI can be removed later once you build 20% equity, but avoiding it upfront saves money from day one.

Opportunity

A bigger down payment isn't always the best use of cash

More down means a smaller loan and less interest, but it also ties up cash you can't easily get back. If putting 20% down would empty your emergency fund, a smaller down payment with PMI is often the safer choice — you can remove PMI later, but you can't easily recover a down payment. Balance avoiding PMI against keeping a cushion.

20% down to avoid PMI

The traditional benchmark that eliminates private mortgage insurance and secures better pricing.

Down payment

$80,000

Loan amount
$320,000
Loan-to-value
80%
Monthly PMI
None
Cash needed at closing
$92,000
To reach 20%
Reached
Closing costs
$12,000
Summary

A 20% down payment is $80,000

On a $400,000 home, putting 20% down means $80,000 toward the purchase and a $320,000 loan — a 80% loan-to-value ratio. Add roughly $12,000 in closing costs and you'd need about $92,000 in cash at closing.

Recommendation

20% or more down means no PMI

At 20% down you avoid private mortgage insurance entirely, which saves hundreds a year and usually earns a slightly better interest rate. You've also got instant equity and a smaller loan, both of which lower risk if home prices dip.

Opportunity

A bigger down payment isn't always the best use of cash

More down means a smaller loan and less interest, but it also ties up cash you can't easily get back. If putting 20% down would empty your emergency fund, a smaller down payment with PMI is often the safer choice — you can remove PMI later, but you can't easily recover a down payment. Balance avoiding PMI against keeping a cushion.

3.5% down (FHA-style minimum)

A low down payment similar to an FHA loan minimum, maximizing purchasing power but adding mortgage insurance.

Down payment

$12,250

Loan amount
$337,750
Loan-to-value
97%
Monthly PMI
$155
Cash needed at closing
$22,750
To reach 20%
$57,750
Closing costs
$10,500
Summary

A 3.50% down payment is $12,250

On a $350,000 home, putting 3.50% down means $12,250 toward the purchase and a $337,750 loan — a 97% loan-to-value ratio. Add roughly $10,500 in closing costs and you'd need about $22,750 in cash at closing.

Watch out$1,858/yr in PMI

Under 20% down adds $155 a month in PMI

Because your down payment is below 20%, you'd pay private mortgage insurance of about $155 a month — roughly $1,858 a year that protects the lender, not you. You'd need $57,750 more to reach 20% and avoid it. PMI can be removed later once you build 20% equity, but avoiding it upfront saves money from day one.

Opportunity

A bigger down payment isn't always the best use of cash

More down means a smaller loan and less interest, but it also ties up cash you can't easily get back. If putting 20% down would empty your emergency fund, a smaller down payment with PMI is often the safer choice — you can remove PMI later, but you can't easily recover a down payment. Balance avoiding PMI against keeping a cushion.

5% down on a starter home

A modest down payment on a lower-priced home, showing the PMI and loan size trade-off.

Down payment

$13,750

Loan amount
$261,250
Loan-to-value
95%
Monthly PMI
$120
Cash needed at closing
$22,000
To reach 20%
$41,250
Closing costs
$8,250
Summary

A 5% down payment is $13,750

On a $275,000 home, putting 5% down means $13,750 toward the purchase and a $261,250 loan — a 95% loan-to-value ratio. Add roughly $8,250 in closing costs and you'd need about $22,000 in cash at closing.

Watch out$1,437/yr in PMI

Under 20% down adds $120 a month in PMI

Because your down payment is below 20%, you'd pay private mortgage insurance of about $120 a month — roughly $1,437 a year that protects the lender, not you. You'd need $41,250 more to reach 20% and avoid it. PMI can be removed later once you build 20% equity, but avoiding it upfront saves money from day one.

Opportunity

A bigger down payment isn't always the best use of cash

More down means a smaller loan and less interest, but it also ties up cash you can't easily get back. If putting 20% down would empty your emergency fund, a smaller down payment with PMI is often the safer choice — you can remove PMI later, but you can't easily recover a down payment. Balance avoiding PMI against keeping a cushion.

The basics

How much should you put down on a house?

The traditional benchmark is 20%, because it eliminates private mortgage insurance, earns a better interest rate, and gives you instant equity. But 20% of a home price is a large sum, and many buyers — especially first-timers — put down less. Conventional loans can go as low as 3%, FHA loans as low as 3.5%, and some VA and USDA loans require nothing down.

A smaller down payment means a bigger loan, more interest over time, and usually PMI until you reach 20% equity. A larger down payment means less interest and no PMI, but ties up cash. This calculator shows the trade-off at every level, so you can see the loan size, loan-to-value ratio and PMI for each scenario side by side.

  • 20% down avoids PMI and usually earns a better rate
  • Conventional loans allow as little as 3% down; FHA 3.5%
  • Loan-to-value (LTV) = loan ÷ price; under 80% avoids PMI
  • Budget 2–5% of the price for closing costs on top of the down payment

Going deeper

The 20% question: put more down or keep cash?

Reaching 20% to avoid PMI is a real saving, but it isn't automatically the best move. PMI is temporary — it can be removed once you reach 20% equity through payments or appreciation — whereas a down payment that drains your savings leaves you exposed to the next emergency. Many financial planners would rather see a buyer put 10% down and keep a healthy emergency fund than stretch to 20% with nothing left.

There's also an opportunity-cost angle. In a market where prices and rents are rising quickly, waiting years to save the full 20% can cost more than the PMI would have. The right answer depends on your cash reserves, how soon you're buying, and how stable your income is — but 'always put 20% down' is a rule of thumb, not a law.

Common mistakes

  1. 1

    Forgetting closing costs

    Closing costs of 2–5% of the price come on top of the down payment. Budgeting only for the down payment leaves buyers short at the table.

  2. 2

    Draining savings to reach 20%

    Emptying your emergency fund to avoid PMI is risky. PMI can be removed later; a lost safety net can't be replaced overnight.

  3. 3

    Assuming 20% is required

    Many buyers wait years to save 20% when 3–5% loans exist. In a rising market, waiting can cost more than PMI would have.

  4. 4

    Ignoring PMI removal

    PMI isn't permanent. Once you reach 20% equity you can request removal, and lenders must cancel at 22% — but they won't do it early unless you ask.

  5. 5

    Overlooking the reserve for repairs

    A new home often needs immediate spending. Putting every dollar into the down payment leaves nothing for the inevitable early costs.

Common questions

How much down payment do I need for a house?

It depends on the loan. Conventional loans can require as little as 3%, FHA loans 3.5%, and some VA and USDA loans nothing. The traditional 20% avoids private mortgage insurance and earns a better rate. On a $400,000 home, that's $12,000 at 3% or $80,000 at 20% — plus 2–5% in closing costs.

Do I have to put 20% down on a house?

No. Twenty percent is a benchmark that avoids PMI and improves your rate, but most buyers put down less. Conventional loans go as low as 3%. Putting less down means a bigger loan and PMI until you reach 20% equity, but it lets you buy sooner and keep cash in reserve.

What is PMI and how do I avoid it?

Private mortgage insurance protects the lender when your down payment is under 20%, typically costing 0.3–1.5% of the loan a year. You avoid it by putting 20% down, or you can have it removed later once you reach 20% equity through payments or home appreciation — lenders must cancel it automatically at 22% equity.

How much cash do I need to buy a house?

More than just the down payment. Budget for closing costs of 2–5% of the price (loan fees, appraisal, title, prepaid taxes and insurance), plus moving costs and a reserve for immediate repairs. On a $400,000 home with 10% down, that's roughly $40,000 down plus $8,000–20,000 in closing costs.

Is it better to put more money down?

More down lowers your loan, interest and PMI, but ties up cash you can't easily recover. If a larger down payment would empty your emergency fund, a smaller one with PMI is often safer — PMI can be removed later, but a drained savings account leaves you exposed. Balance avoiding PMI against liquidity.

What is loan-to-value ratio?

LTV is the loan amount divided by the home's value, expressed as a percentage. A 10% down payment means a 90% LTV. Lenders use it to gauge risk: under 80% LTV (20%+ down) avoids PMI and earns better pricing, while higher LTVs cost more. As you pay down the loan, your LTV falls.

Glossary

Down payment
The cash you pay upfront toward a home's price, reducing the amount you borrow.
Loan-to-value (LTV)
The loan divided by the home's value. Under 80% (20%+ down) avoids PMI.
PMI
Private mortgage insurance, required when the down payment is under 20%. It protects the lender, not you.
Closing costs
Fees due at closing — loan, appraisal, title, prepaid taxes and insurance — typically 2–5% of the price.
Equity
The share of the home you own outright: value minus loan balance. It grows as you pay down or the home appreciates.
Earnest money
A deposit made with an offer to show good faith, later applied toward the down payment or closing costs.

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