Down Payment Calculator

Calculate down payment amount, financed loan amount, and estimated monthly housing cost including optional PMI assumptions.

Home Purchase Inputs

Down Payment

$90,000

Loan Amount

$360,000

P&I Monthly

$2,335

Estimated Monthly Housing

$2,935

PMI estimate shown when down payment is below 20% using a simplified annual factor (0.7% of loan amount).

Why down payment planning matters

Your down payment directly affects loan size, monthly payment, and overall financing cost. A larger down payment lowers debt and interest, but also ties up cash that could be kept as an emergency reserve.

This calculator helps balance affordability and risk by showing how down payment changes monthly housing cost. It can also highlight when PMI may apply under common lending assumptions.

Comparing scenarios before buying

Run multiple scenarios at different down payment levels and rates. This lets you compare how much extra monthly cash flow you preserve versus how much total interest you may pay over time.

Frequently Asked Questions

How much down payment is ideal?
Many buyers target 20% to reduce borrowing cost and avoid PMI, but affordable and sustainable cash reserves are equally important.
What is PMI and when does it apply?
PMI (private mortgage insurance) is commonly required when down payment is below 20% on conventional loans.
Does this include all homeownership costs?
No. This is an estimate. Maintenance, HOA dues, utilities, and closing costs are not included unless you add them separately.

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