When does PMI go away?

On conventional loans you can request removal at 20% equity, and it ends automatically at 22% equity based on the original schedule.

Are closing costs part of the down payment?

No. Closing costs of roughly 2-5% of the price are paid separately, so budget for both.

Is the PMI figure exact?

It's an estimate. Actual PMI depends on your credit score, loan-to-value and lender.

Does the payment include taxes and insurance?

The headline is principal and interest only. Add property tax, insurance and HOA to see the estimated total.

Down Payment Calculator

See how your down payment changes your loan, monthly payment and PMI, and how long it will take to save for it.

Home price

Down payment

Down payment (%)

Loan term

Mortgage rate

Property tax (optional)

%/yr

Home insurance (optional)

$/yr

HOA (optional)

$/mo

Savings planner

Saved so far

I can save per month

Monthly principal & interest

$2,022.62

Down payment: $80,000.00 (20%)
Loan amount: $320,000.00
Estimated total / mo: $2,022.62
Closing costs (2-5%): $8,000.00 to $20,000.00

Saving $1,000.00 a month, you'll have your down payment in about 60 months (5 years).

Compare down payments

Down	Amount	Loan	P&I / mo	PMI
3%	$12,000.00	$388,000.00	$2,452.42	Likely
5%	$20,000.00	$380,000.00	$2,401.86	Likely
10%	$40,000.00	$360,000.00	$2,275.44	Likely
15%	$60,000.00	$340,000.00	$2,149.03	Likely
20%	$80,000.00	$320,000.00	$2,022.62	None

How it works

Enter the home price and a down payment as a percentage or dollar amount. The loan is the price minus the down payment, and the monthly principal and interest come from the standard mortgage formula.

With less than 20% down, most conventional lenders charge private mortgage insurance (PMI). We show an estimated range of 0.5% to 1% of the loan per year. Optional property tax, insurance and HOA give a fuller monthly cost.

Closing costs are estimated at 2-5% of the price. The comparison table shows payments at 3%, 5%, 10%, 15% and 20% down, and the savings planner estimates how many months until you've saved enough.

Formula

loan = price − down P&I = loan × r ÷ (1 − (1 + r)^−n) PMI ≈ loan × (0.5% to 1%) ÷ 12

Where:

r: = Monthly rate = rate ÷ 100 ÷ 12
n: = Loan term in months

Worked example

A $400,000 home with 20% down ($80,000) leaves a $320,000 loan.

At 6.5% for 30 years, r = 0.065 ÷ 12 and n = 360, so P&I = $2,022.62 per month. With 20% down, no PMI is needed.

Strategizing Your Path to Homeownership

The down payment is often the biggest hurdle to buying a home, but the '20% rule' isn't as rigid as it once was. While a 20% down payment allows you to avoid Private Mortgage Insurance (PMI) and lowers your monthly payments, many buyers opt for lower amounts to get into a home sooner. This calculator helps you weigh that trade-off by estimating your potential PMI costs and showing how different down payment levels affect your total loan amount. By visualizing the impact on your monthly budget, you can decide if the extra cost of PMI is worth the benefit of homeownership today versus waiting years to save more.

Beyond the down payment itself, it is crucial to account for the ongoing costs of ownership like property taxes, homeowners insurance, and HOA fees. Many first-time buyers are surprised to find that these 'extras' can add 20% to 30% to their monthly mortgage obligation. This tool allows you to include these figures in your projection, giving you a complete picture of the total monthly cost. Seeing the full 'PITI' (Principal, Interest, Taxes, and Insurance) total ensures that your savings goal isn't just enough for the house, but enough for the lifestyle that comes with it.

Mapping the Savings Timeline

One of the most practical features of this tool is the savings planner at the bottom. Once you have determined your target down payment, you can enter your current savings and monthly contribution to see a realistic timeline for when you will be ready to buy. Remember to also budget for closing costs, which typically range from 2% to 5% of the home's price. If your projected timeline is too long, you can use the calculator to see how increasing your monthly savings by even a small amount or choosing a slightly lower-priced home can drastically pull your 'ready date' closer to the present.

Frequently asked questions

No. Conventional loans allow as little as 3% down and FHA loans 3.5%, but under 20% usually means paying PMI.

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For informational purposes only. This calculator does not provide financial advice. Consult a qualified professional before making decisions based on these results.