Down Payment Calculator

A down payment is the cash you pay upfront when buying a home. It reduces the mortgage loan amount and determines your loan-to-value ratio (LTV), which affects whether you need private mortgage insurance, the interest rate you qualify for, and the total cost of the loan. This down payment calculator lets you enter a home price and adjust the down payment by percentage or dollar amount, then shows the loan amount, LTV, PMI status, closing costs, and total cash needed at closing. Loan-program presets (VA, FHA, conventional) let you compare minimums instantly.

Home Price

$400,000.00

$50K$2M

Down Payment

0%50%

%= $80,000.00

Quick presets by loan program:

Estimated Closing Costs

0%8%

%= $12,000.00

Results for $400,000.00 Home

Down Payment

$80,000.00

20.0% of home price

Loan Amount

$320,000.00

80.0% LTV

No PMI Required

Your down payment of 20.0% puts your LTV at 80.0%, which meets or exceeds the 20% equity threshold. Conventional lenders will not require private mortgage insurance.

Estimated Closing Costs

$12,000.00

Total Cash to Close

$92,000.00

Compare Down Payments by Loan Program

Program	Down Payment	Loan Amount	LTV	PMI
VA / USDA	$0.00	$400,000.00	100.0%	Required
Conventional 3%	$12,000.00	$388,000.00	97.0%	Required
FHA 3.5%	$14,000.00	$386,000.00	96.5%	Required
Conventional 5%	$20,000.00	$380,000.00	95.0%	Required
20% (No PMI)	$80,000.00	$320,000.00	80.0%	None

Down Payment Calculator by Home Price

The down payment amount scales directly with the home price. At a fixed percentage, a more expensive home requires proportionally more cash upfront, and closing costs increase in parallel. The calculator above handles any home price between $50,000 and $2,000,000, so you can compare scenarios across price points.

Down Payment at Various Home Prices (20% Down, 3% Closing Costs)

$300,000 home: $60,000 down, $240,000 loan (80% LTV), $9,000 closing costs, $69,000 cash to close. $400,000 home: $80,000 down, $320,000 loan (80% LTV), $12,000 closing costs, $92,000 cash to close. $500,000 home: $100,000 down, $400,000 loan (80% LTV), $15,000 closing costs, $115,000 cash to close. $600,000 home: $120,000 down, $480,000 loan (80% LTV), $18,000 closing costs, $138,000 cash to close. All assume 20% down with no PMI.

As home prices rise, the gap between what lenders require (3% to 5% for conventional) and the 20% PMI-free threshold widens in dollar terms. On a $600,000 home, the difference between 5% down ($30,000) and 20% down ($120,000) is $90,000. For buyers who cannot bridge that gap, a lower down payment with PMI is the practical path, with the understanding that PMI can be removed later once equity reaches 20% through appreciation or principal paydown.

How Much Down Payment for a $400,000 House

For a $400,000 home, the down payment depends on the loan program and how much you want to put down. Below is a comparison of common scenarios, including estimated closing costs at 3%.

$400,000 Home: Down Payment Comparison (3% Closing Costs)

VA/USDA (0% down): $0 down, $400,000 loan (100% LTV), $12,000 closing costs, $12,000 total cash to close. No PMI, but VA has a funding fee (2.15% to 3.3% of loan). Conventional 3%: $12,000 down, $388,000 loan (97% LTV), $12,000 closing costs, $24,000 total cash. PMI required. FHA 3.5%: $14,000 down, $386,000 loan (96.5% LTV), $12,000 closing costs, $26,000 total cash. FHA MIP required (1.75% upfront plus annual premium). Conventional 5%: $20,000 down, $380,000 loan (95% LTV), $12,000 closing costs, $32,000 total cash. PMI required. Conventional 20%: $80,000 down, $320,000 loan (80% LTV), $12,000 closing costs, $92,000 total cash. No PMI.

The jump from 5% to 20% down on a $400,000 home is $60,000 in additional upfront cash. Whether that extra outlay makes sense depends on whether you have the funds available, whether the PMI savings over time outweigh the opportunity cost of locking up that cash, and how long you plan to stay in the home. If you expect to stay fewer than 5 to 7 years, PMI may cost less than the interest you would earn on that $60,000 invested elsewhere.

FHA Down Payment Calculator

FHA loans require a minimum down payment of 3.5% of the purchase price for borrowers with credit scores of 580 or above. Borrowers with scores between 500 and 579 must put at least 10% down. FHA loans are insured by the Federal Housing Administration and are available through FHA-approved lenders.

In addition to the down payment, FHA loans carry a mortgage insurance premium (MIP). There is an upfront MIP of 1.75% of the loan amount, which can be rolled into the loan balance, plus an annual MIP that ranges from 0.15% to 0.75% depending on the loan term and LTV. For a $400,000 home with 3.5% down, the down payment is $14,000, the base loan is $386,000, the upfront MIP is $6,755 (often financed), and the annual MIP adds roughly $177 to $290 per month depending on the term.

FHA mortgage insurance generally lasts for the life of the loan if the down payment is less than 10% (for loans originated after June 2013). With 10% or more down, MIP cancels after 11 years. This is a key difference from conventional PMI, which drops off at 78% LTV. Use the calculator above with the FHA 3.5% preset to see the down payment and LTV, then switch to the PMI Calculator to compare FHA MIP against conventional PMI costs.

3 Percent Down Payment Calculator

A 3% down conventional loan is the lowest down payment option available outside of VA and USDA programs. Fannie Mae HomeReady and Freddie Mac Home Possible programs both offer 3% down for qualified borrowers, with income limits that vary by location. Standard conventional 3% down products without income restrictions are also available from many lenders.

At 3% down, the loan-to-value ratio is 97%, which means private mortgage insurance is required. Using a $400,000 home as an example, a 3% down payment is $12,000, producing a loan of $388,000. The PMI cost at 97% LTV depends on credit score, but a borrower in the good credit range (720-759) might pay roughly 0.80% to 1.05% annually on the loan amount, or approximately $259 to $340 per month. At the same rate, a borrower with excellent credit (760+) might pay 0.30% to 0.55%, or roughly $97 to $178 per month.

The advantage of 3% down is the lower upfront cash requirement, which makes homeownership accessible sooner. The tradeoff is higher monthly costs (PMI plus interest on a larger loan) and slower equity growth. If home prices appreciate, the higher leverage works in your favor, but if prices decline, you could end up owing more than the home is worth. Setting the calculator to 3% and then comparing against 5%, 10%, and 20% shows the exact dollar impact at each level.

Down Payment and Closing Cost Calculator

The total cash you need at closing is the down payment plus all closing costs. This combined figure, often called cash to close, is what buyers must have available on the day of settlement. Many buyers focus on the down payment alone and are surprised by the additional 2% to 5% needed for closing costs.

Closing costs include lender origination fees (typically 0.5% to 1% of the loan), appraisal fees ($300 to $600), title insurance ($1,000 to $2,500 depending on location and loan amount), attorney fees where applicable, recording fees, escrow deposits for property taxes and insurance (usually 2 to 6 months of each), and prepaid interest from the closing date to the first payment date. Some of these costs, such as escrow deposits and prepaid interest, are not true fees but still require cash at closing.

Cash to Close Examples at 3% Estimated Closing Costs

$300,000 home, 5% down: $15,000 down + $9,000 closing = $24,000 total. $400,000 home, 10% down: $40,000 down + $12,000 closing = $52,000 total. $500,000 home, 20% down: $100,000 down + $15,000 closing = $115,000 total. Closing cost percentage can vary; some markets run 4% to 5%. Always request a Loan Estimate from your lender for an itemized breakdown.

In some cases, you can negotiate for the seller to pay a portion of your closing costs through a seller concession, typically up to 3% of the purchase price on conventional loans and up to 6% on FHA loans. This does not reduce your total cost but shifts some of it to the seller, reducing the cash you need at closing. Lender credits in exchange for a slightly higher interest rate are another option. The calculator above includes the closing cost field so you can model these scenarios and see the exact cash-to-close figure for any combination of home price, down payment, and closing cost estimate.

Frequently Asked Questions

How much should I put down on a house?

The ideal down payment depends on your loan program, financial situation, and goals. Conventional loans require as little as 3% down, FHA loans require 3.5%, and VA and USDA loans offer 0% down for eligible borrowers. Putting 20% down on a conventional loan eliminates the private mortgage insurance requirement, which can save $100 to $300 or more per month. However, waiting to save 20% means delaying homeownership and potentially facing higher home prices. Many buyers find that a 5% to 10% down payment strikes a reasonable balance between upfront cost and monthly obligation.

Can my down payment come from a gift?

Yes. Conventional, FHA, VA, and USDA loan programs all allow down payment gifts from family members, though the rules differ. For conventional loans backed by Fannie Mae or Freddie Mac, the entire down payment can be a gift on one-unit primary residences. FHA loans allow gifts from relatives, employers, charitable organizations, and government agencies. VA loans permit gifts from nearly any source. In all cases, the gift must be documented with a gift letter stating that no repayment is expected. Cash gifts must be traceable; lenders will want to see the donor's bank statements showing the funds transferring to your account.

What is the difference between down payment and closing costs?

The down payment is the portion of the home price you pay upfront, which reduces the loan amount. Closing costs are separate fees charged by lenders, title companies, appraisers, and local governments to process the transaction. Closing costs typically range from 2% to 5% of the home price and include lender origination fees, title insurance, appraisal fees, escrow deposits, and prepaid items like property taxes and homeowner's insurance. Both are due at closing, so total cash to close is the down payment plus closing costs. For a $400,000 home with 10% down and 3% closing costs, you would need $40,000 (down) plus $12,000 (closing) for a total of $52,000 at closing.

Does a larger down payment get a better interest rate?

Generally yes. Lenders price loans based on risk, and a higher down payment lowers the loan-to-value ratio, which reduces the lender's exposure. Borrowers who put 20% or more down typically receive better rates than those putting 5% or less. The difference is usually modest, often 0.125% to 0.375% in rate. On a $320,000 loan (20% down on $400,000), a 0.25% rate improvement saves roughly $50 per month and about $18,000 in total interest over 30 years. However, the opportunity cost of tying up extra cash should also be considered. If that cash could earn more invested elsewhere, a smaller down payment at a slightly higher rate might make financial sense.

What are down payment assistance programs?

Down payment assistance (DPA) programs are offered by state and local housing finance agencies, nonprofits, and some employers to help buyers cover the upfront cost. Programs vary by location but commonly provide grants (no repayment required), forgivable second mortgages (forgiven after a set period if you remain in the home), or low-interest deferred-payment loans. Eligibility typically depends on income limits, purchase price limits, and first-time homebuyer status. The National Council of State Housing Agencies (NCSHA) maintains a directory of state housing finance agencies where you can search for programs in your area.

Related Calculators

Browse all tools on the Home Buying Calculators hub. If your down payment is below 20%, use the PMI Calculator to estimate the monthly insurance cost and see when it drops off. The Refinance Break-Even Calculator helps you evaluate whether refinancing to eliminate PMI or lower your rate saves money. The HELOC Calculator shows how much you can borrow against home equity after building equity through your down payment and mortgage payments. The DTI Calculator checks whether your total monthly debt payments, including the new mortgage, fit within lender qualification limits.

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