Money · home
Down Payment Calculator
By the Dailycaltor team · formula-verified · last updated July 2026
What you need upfront for a home.
Details
Formula
Down payment = home price × percentage. The rest becomes your loan. Below 20% down, conventional loans usually add PMI (private mortgage insurance) until you reach 20% equity.
Worked examples
- $350,000 home at 20% → $70,000 down, $280,000 loan.
- Same home at 3.5% → $12,250 down but PMI applies.
- 10% on $500,000 → $50,000 down.
Common mistakes
- Draining all savings for the down payment and keeping no emergency fund.
- Forgetting closing costs (often 2–5% of price) on top of the down payment.
- Assuming 20% is mandatory — many programs accept far less.
Last updated: July 2026. Educational estimates only.
Questions
How much down payment do I need?
Conventional norms are 5–20%; FHA-style programs go as low as 3.5%. 20% avoids PMI.
What is PMI?
Insurance protecting the lender when you put down under 20% — typically 0.3–1.5% of the loan per year until you hit 20% equity.
Is a bigger down payment always better?
It lowers payments and interest, but keeping cash for emergencies and other goals also has value.
Do closing costs count in the down payment?
No — budget them separately, usually 2–5% of the price.
Can gifts count toward a down payment?
Often yes, with documentation — lenders have gift-letter rules.