Mortgage Down Payment Calculator
This mortgage down payment calculator with PMI compares 3%, 5%, 10%, 15%, and 20% down side by side, projects how many months it will actually take you to save each target based on what you’re setting aside today, and shows exactly when PMI falls off your loan, with and without typical home appreciation. For your full monthly payment on a specific home, use the full Mortgage Calculator.
Skip straight to the calculator ↓Your Home & Loan Details
Your Savings Plan
This drives the savings timeline shown for each down payment level below.
Compare Down Payment Levels
| Down payment | Down $ | Loan amount | Monthly P&I | Monthly PMI | Total monthly | Time to save |
|---|
Enter your details above to see the real tradeoffs between waiting to save more and buying sooner with a smaller down payment.
When Does PMI Actually Go Away?
Pick a down payment level below 20% to see when your loan balance drops to the 80% and 78% loan-to-value thresholds that trigger PMI cancellation, both from paying down principal alone and with typical home appreciation factored in.
| Milestone | Based on paydown only | With home appreciation |
|---|
How Much Down Payment Do You Actually Need?
Twenty percent down isn’t a rule, it’s a threshold, the point where private mortgage insurance stops applying on a conventional loan. Conventional loans allow as little as 3% down for qualifying first-time buyers, FHA loans allow 3.5%, and VA and USDA loans can allow 0% down for eligible borrowers. The real question isn’t the minimum you’re allowed to put down, it’s the tradeoff between buying sooner with a smaller down payment and paying PMI for a while, versus waiting longer to save more and skipping it entirely. The comparison table above is built to make that tradeoff concrete instead of abstract.
What PMI Actually Costs You, Month by Month and Over Time
Private mortgage insurance on a conventional loan typically runs 0.5% to 1.5% of the loan amount annually, split into a monthly premium, and it protects the lender, not you, in case you default. It isn’t wasted money in the sense that it’s the toll for buying with less cash upfront, but it is a real, recurring cost that disappears once you’ve built enough equity. The stat row above shows both the ongoing monthly cost you’d avoid at 20% down and a rough estimate of the total PMI you’d pay over time at a smaller down payment, so you can weigh that against how many extra months of saving it would take to skip it.
How PMI Cancellation Actually Works
Under the federal Homeowners Protection Act, your lender must automatically cancel PMI once your loan balance reaches 78% of your home’s original value, based purely on your amortization schedule. You can also request cancellation yourself once you hit 80% loan-to-value, which your lender may grant based on the original value or a new appraisal if you’ve made improvements or the market has moved. Home price appreciation can get you there meaningfully faster than paydown alone, which is exactly what the dual-column table above is built to show: the paydown-only timeline versus a timeline that credits typical market appreciation.
Is It Worth Waiting to Save a Bigger Down Payment?
It depends entirely on how the math plays out for your specific numbers. If home prices and rates are rising while you save, the extra months spent reaching 20% down can cost you more in a higher purchase price and rate than the PMI you would have paid buying sooner. If your savings rate is strong and you’re close to 20% already, waiting a few more months to skip PMI entirely can be the clearly better move. There’s no universal right answer, which is why comparing the actual time-to-save figure against the actual monthly PMI cost, side by side, matters more than a rule of thumb.
Frequently Asked Questions
What is the minimum down payment for a mortgage?
Conventional loans allow as little as 3% down for qualifying first-time buyers, FHA loans require 3.5%, and VA and USDA loans can allow 0% down for eligible borrowers.
Do I have to put 20% down to avoid PMI?
On a conventional loan, yes, PMI generally applies to any down payment under 20%. It’s not a hard legal requirement to buy a home, but it is the threshold where the extra insurance cost disappears.
When does PMI automatically fall off my loan?
Under the Homeowners Protection Act, lenders must automatically cancel PMI once your loan balance reaches 78% of the home’s original value based on your amortization schedule, even if you never ask.
Can I get PMI removed sooner than the automatic cancellation date?
Yes, you can typically request cancellation once you reach 80% loan-to-value, which your lender may approve using the original value or a new appraisal, especially if home values have risen or you’ve made improvements.
Is it better to buy now with a small down payment or wait and save 20%?
It depends on your savings rate versus how fast home prices and rates are moving in your market. Comparing your actual time-to-save against the actual monthly PMI cost for your numbers, rather than following a flat rule, gives a clearer answer.
Does a bigger down payment always mean a better rate?
Often, yes, lenders frequently offer modestly better pricing at higher down payment tiers, but the effect varies by lender and loan program and is separate from the PMI question this calculator focuses on.
Does this calculator include closing costs?
No, this tool focuses specifically on the down payment and PMI tradeoff. For a full closing cost estimate, use the Closing Cost Calculator linked below.
References
- Consumer Financial Protection Bureau, Owning a Home resources – consumerfinance.gov/owning-a-home
- U.S. Department of Housing and Urban Development, homebuying guidance – hud.gov/topics/buying_a_home
Related DexoCalc Tools
This down payment calculator is one piece of the full mortgage planning toolkit on DexoCalc.
State Mortgage Calculators
Once you’ve settled on a down payment level, want the full monthly payment picture for a specific state, including local property tax? These calculators use real local tax data:
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed mortgage professional. PMI rates, savings growth, and home appreciation are estimates and will vary by lender, market, and account.