Down payment, loan amount and monthly payment for a home purchase, plus whether PMI may apply. Results update as you type.
Enter the home price and down payment percentage. The loan amount is the price minus the down payment, and the monthly payment is the principal and interest on that loan. The loan-to-value ratio is the loan divided by the price.
Results are estimates for education only and are not financial advice.
On a conventional loan, a 20% down payment generally avoids PMI. With less than 20% down, PMI is usually added to the monthly payment until your equity reaches 20%.
Down payment = home price × down payment %. Loan amount = home price − down payment. LTV = loan amount ÷ home price × 100. Monthly principal and interest = P × r ÷ (1 − (1 + r)^(−n)), with r = annual rate ÷ 100 ÷ 12 and n = term in months.
A $500,000 home with 20% down gives a $100,000 down payment and a $400,000 loan, for an LTV of 80%. At 7% over 30 years, monthly principal and interest are $2,661.21. At 20% down, PMI is generally not required.
A bigger down payment lowers the loan amount, the monthly payment, and the total interest, and it can avoid PMI. The trade-off is cash: money put into the down payment is no longer available for emergencies, moving costs, or repairs, so many buyers balance a lower payment against keeping a cash reserve.
Common sources are personal savings, and in many cases gift funds from family, which usually require a signed gift letter stating the money does not need to be repaid. Retirement account withdrawals and employer assistance programs are also possible sources, but each comes with its own rules and tax effects.
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