20% Down Payment

20% Down Payment Calculator

Putting 20% down eliminates PMI and gives you a lower monthly payment — but requires significantly more cash upfront. Use this calculator to see if reaching 20% is worth the wait.

Target Home

$

Cash Available

%
%

Loan Details

%

Typical down payment ranges

  • 3–5% Minimum upfront cost, but higher monthly payments and PMI.
  • 10–15% Balanced approach between upfront cash and monthly cost.
  • 20%+ No PMI and lower long-term cost.

Example:

If you buy a $400,000 home:

  • • 5% down ($20,000): Higher monthly payment + PMI
  • • 20% down ($80,000): Lower monthly payment, no PMI

Difference: You may save $200–$400/month depending on your rate.

Cash Needed at Closing

Cash needed to buy this home

$92,000

For a $400,000.00 home, this is a strong upfront requirement. Many buyers aim for $40,000.00–$80,000.00 depending on strategy.

Down payment

$80,000

Closing costs

$12,000

Cost-Optimized

You avoid PMI and reduce long-term cost. This is financially stronger if you can afford the upfront cash.

Estimates based on your inputs. Actual results may vary. Terms →

Purchase Composition

Your cash
Financed amount

Higher down payment reduces loan size and monthly cost

Down Payment Scenarios

ScenarioCash NeededPMIMonthly (P&I)
Low (5%)
$32,000Yes$2,480
Medium (10%)
$52,000Yes$2,350
Strong (20%)Current
$92,000No$2,090

What should you do next?

If your down payment is below 10%, your monthly cost will likely be significantly higher due to PMI.

  • → If your priority is lower monthly payments, consider increasing your down payment.
  • → If your priority is getting into the market sooner, accepting PMI may still make sense.

Most buyers fall between these two trade-offs.

How does your down payment affect maximum affordability?Calculate the exact monthly cost of your loan

Is 20% down worth it?

Benefits of 20% down

  • → No PMI (saves $100–300/month)
  • → Lower monthly payment
  • → Better loan terms from lenders
  • → More equity from day one

When to consider less than 20%

  • → Getting into the market sooner
  • → Keeping cash for emergencies
  • → Market appreciation may outpace PMI cost
  • → Low mortgage rates make PMI more manageable

Estimates based on your inputs. Actual results may vary. Terms →