How This Down Payment Calculator Works
Down payment = home price × down payment percentage. Loan amount = price − down payment. The monthly principal-and-interest payment uses the standard amortization formula: payment = loan × monthly rate ÷ (1 − (1 + monthly rate)−months). Taxes, insurance, HOA and PMI are not in that payment figure — the PMI line tells you separately whether private mortgage insurance is likely, which for conventional loans usually applies below 20% down and can usually be removed once you reach 20% equity.
Down = price × % · Loan = price − down · Payment = loan × r ÷ (1 − (1 + r)−n)r = annual rate ÷ 12, n = months. Payment shown is principal and interest only.
Worked example: $400,000 home, 10% down. Down payment = $40,000, loan = $360,000. At 6.5% over 30 years, monthly principal and interest = $2,275.44. Because 10% is under 20%, PMI likely applies on top of that payment until 20% equity is reached.
Practical tips
Conventional loans allow as little as 3% down for qualified buyers, and FHA loans 3.5%. The cost of a small down payment is PMI plus a larger loan, not rejection.
Closing costs typically add 2–5% of the price, plus prepaid taxes and insurance. Budget for those on top of the down payment shown here.
On a conventional loan you can usually request PMI removal at 20% equity and it must end automatically at 22% equity based on the original value. Track your balance against that line.
Emptying your emergency fund for a 20% down payment trades one risk for another. Many buyers put less down deliberately and keep cash in reserve.