Down Payment Calculator — Compare 5% vs 10% vs 20%
Last Updated: February 2026
Your down payment is the upfront amount you put toward the home purchase price. It directly affects your loan amount, which impacts your monthly payment and the total interest you pay over time.
Use this down payment calculator to compare scenarios side-by-side. You can calculate using a percentage or a dollar amount, and you can instantly compare 5% vs 10% vs 15% vs 20% to see how each choice changes your numbers.
What Is a Down Payment?
A down payment is the portion of the home price you pay upfront. The remaining amount becomes your mortgage (your loan). Because your loan amount changes when your down payment changes, even small differences can meaningfully affect your monthly payment.
- Higher down payment → smaller loan → usually lower monthly payment and lower total interest.
- Lower down payment → larger loan → usually higher payment and higher total interest.
- PMI may apply when putting down less than 20% (often depends on loan type and lender rules).
Why 20% Down Gets Mentioned So Often
People talk about “20% down” because it is a common threshold where PMI (private mortgage insurance) is often not required on many conventional loans. PMI is an added cost that can raise your monthly payment when your down payment is smaller.
That said, 20% is not required for most buyers. Many people buy with less down and accept the tradeoffs. The best down payment is often the one that balances your monthly payment with keeping enough cash available for moving costs, repairs, and a safety buffer.
Simple Example Using Round Numbers
Let’s use a clean example to show the pattern. If a home costs $400,000, then:
5% down = $20,000 → loan = $380,000 (PMI often applies)
10% down = $40,000 → loan = $360,000 (PMI often applies)
15% down = $60,000 → loan = $340,000 (PMI may still apply)
20% down = $80,000 → loan = $320,000 (PMI often not required)
This page shows estimates for planning. Your lender, loan type, and credit profile can change final terms and insurance requirements.
Want to estimate your full mortgage payment next?
Use the Mortgage CalculatorDown payment changes your loan amount — the mortgage calculator helps you see the monthly impact.
Break-Even Thinking: Bigger Down Payment vs Keeping Cash
A bigger down payment can reduce your monthly payment, but it also uses cash that could cover emergency savings, repairs, or other goals. A simple way to think about it is: “How much monthly relief do I get for the extra cash I’m putting down?”
If putting an extra $20,000 down reduces your payment by a meaningful amount and helps you avoid PMI, it may be worth it. If it drains your savings and leaves you vulnerable to surprises, a smaller down payment can sometimes be the safer choice.
Tip: Don’t let a down payment target force you to go “cash-poor.” Many buyers prioritize keeping a buffer after closing.
Down Payment Calculator (Interactive)
Enter a home price and choose a down payment as a percent or dollar amount. Optionally enter an estimated PMI amount if you know it. The tool will also auto-compare 5%, 10%, 15%, and 20% side-by-side.
Your Down Payment
$0
Your Loan Amount
$0
Est. Monthly (P&I)
$0
Total Interest
$0
| Down % | Down Payment | Loan Amount | Monthly (P&I) | PMI Likely | PMI Used | Monthly (P&I + PMI) | Total Interest |
|---|
Note: Monthly payment shown here is principal + interest, plus optional PMI if you entered it. Taxes, insurance, HOA, and lender fees are not included.
Considering refinancing later? Compare your current loan vs a new scenario.
Use the Refinance CalculatorRefinance decisions often come down to monthly savings, total interest, and break-even timing.
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FAQs
What is a down payment?
A down payment is the upfront portion of the purchase price you pay at closing. The rest becomes your mortgage loan.
How do I calculate 10% down?
Multiply the home price by 0.10. For example, 10% of $400,000 is $40,000.
Do I need 20% down to buy a home?
No. Many buyers purchase with less than 20% down. The tradeoff is often higher monthly costs and, in many cases, PMI.
What is PMI and when does it apply?
PMI (private mortgage insurance) is a fee that can be added when your down payment is below 20% on many conventional loans. Rules vary by loan type and lender.
Is a bigger down payment always better?
Not always. A bigger down payment can reduce payment and interest, but it may reduce your savings buffer. Many buyers balance affordability with keeping cash for emergencies and repairs.
Does my down payment affect my interest rate?
It can. A larger down payment may improve loan terms for some borrowers, but rates also depend on credit, loan type, and lender pricing.
What is “cash to close”?
Cash to close is the total amount you bring to closing, often including your down payment plus closing costs and other prepaid items. It varies by lender and transaction.
A down payment is one of the biggest levers you can control when planning a mortgage. Use this calculator to test a few realistic scenarios, compare 5% vs 10% vs 15% vs 20%, and choose the option that supports both affordability and a healthy cash buffer. Then confirm your exact terms and requirements with your lender before you commit.
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