Conventional loans require as little as 3% down for qualified buyers. This calculator helps you understand the minimum cash needed and how different down payment amounts affect your costs.
Example:
If you buy a $400,000 home:
Difference: You may save $200–$400/month depending on your rate.
Cash needed to buy this home
$32,000
For a $400,000.00 home, this is a high cost upfront requirement. Many buyers aim for $40,000.00–$80,000.00 depending on strategy.
Down payment
$20,000
Closing costs
$12,000
Low down payment reduces upfront cash but increases monthly cost and adds PMI. Consider increasing to 10–15% if possible.
Estimates based on your inputs. Actual results may vary. Terms →
Higher down payment reduces loan size and monthly cost
| Scenario | Cash Needed | PMI | Monthly (P&I) |
|---|---|---|---|
Low (5%)Current | $32,000 | Yes | $2,480 |
Medium (10%) | $52,000 | Yes | $2,350 |
Strong (20%)Best Value | $92,000 | No | $2,090 |
If your down payment is below 10%, your monthly cost will likely be significantly higher due to PMI.
Most buyers fall between these two trade-offs.
| Down Payment | PMI Required | Typical Use Case |
|---|---|---|
| 3% | Yes | First-time buyers, strong credit |
| 5% | Yes | Most common entry point |
| 10% | Yes | Lower PMI rate |
| 20% | No | Eliminate PMI entirely |
* PMI typically costs 0.5–1.5% of loan amount annually and cancels automatically at 22% equity.
Estimates based on your inputs. Actual results may vary. Terms →