How to calculate a down payment
The down payment is just the home price times your chosen percentage, and the loan is whatever is left:
Down payment = Price × Down % • Loan = Price − Down payment
On a $400,000 home with 20% down, that's $80,000 down and a $320,000 loan — an 80% loan-to-value. To see the monthly payment on that loan, use the mortgage calculator.
The 20% rule and PMI
Putting 20% down (an 80% LTV or lower) typically lets you avoid private mortgage insurance. Below that, lenders usually add PMI until you build enough equity. Smaller down payments are common and valid — they just mean a bigger loan and, often, PMI.
Don't forget closing costs
Beyond the down payment you'll need 2–5% of the price for closing costs — lender fees, title, and prepaid taxes and insurance. The calculator adds your closing-cost estimate to show the real cash you need at the table.
Frequently asked questions
How much should I put down on a house?
Twenty percent is the classic target because it lets you avoid private mortgage insurance (PMI), but many loans allow far less — often 3% to 5% for conventional loans and 3.5% for FHA. A larger down payment means a smaller loan, lower monthly payments, and less interest over time.
How do I calculate a down payment?
Multiply the home price by the down payment percentage. On a $400,000 home, a 20% down payment is $400,000 × 0.20 = $80,000, leaving a $320,000 loan. Enter your price and percentage to see the figures instantly.
What is loan-to-value (LTV)?
Loan-to-value is the loan amount divided by the home price, as a percentage. A 20% down payment gives an 80% LTV. Lenders watch LTV closely — an LTV above 80% usually triggers PMI and can mean a higher interest rate.
When do I have to pay PMI?
On conventional loans, private mortgage insurance is generally required when your down payment is under 20% (an LTV above 80%). It can usually be cancelled once you build enough equity to bring the LTV back to 80% or below.
How much cash do I need besides the down payment?
Plan for closing costs too — typically 2% to 5% of the price for lender fees, title, taxes, and prepaids. This calculator adds an estimated closing cost so you can see the total cash needed, not just the down payment.
Disclaimer: Closing costs and PMI rules vary by lender, loan type, and location. This is an estimate for educational purposes only and is not financial advice.