Down Payment Guide

Down Payment Calculator: How Much Do You Really Need?

George Smith — Founder, Klickify Agency

You have $50,000 saved for a home purchase. You think that is a lot. Then you look at home prices. A decent house in your area costs $420,000. You realize $50,000 is only 12% down. You start researching: do you need 20% down? Can you put 5%? What about 3%? Every website gives a different answer.

The truth is that the minimum down payment depends on the loan type. Conventional loans go as low as 3% for first-time buyers. FHA loans go to 3.5%. VA and USDA loans can be 0% down. But lower down payments come with higher monthly costs (PMI or MIP) and higher interest rates. Your $50,000 might be enough for a $420,000 home with 10% down ($42,000) and leave $8,000 for closing costs. Or you could put 5% down ($21,000) and keep $29,000 in savings for emergencies.

Most down payment calculators are lead generation tools. Bankrate will ask for your email to "save your results." NerdWallet's calculator is hidden behind a "get personalized advice" button. LendingTree does not have a calculator — they just want you to apply. Truly Free Mortgage Calculator has a down payment tool that shows you the monthly cost for every down payment level. No email. No phone number.

The Real Down Payment Math (With 2026 Numbers)

Let me show you the cost differences for a $400,000 home at different down payment levels. We will assume a 6.8% interest rate and average property taxes ($400/month) and insurance ($100/month).

3% down ($12,000): Loan $388,000. PMI at 0.85% = $275/month. Principal & interest $2,530. Total monthly: $2,530 + $275 + $400 + $100 = $3,305.

5% down ($20,000): Loan $380,000. PMI at 0.8% = $253/month. P&I $2,478. Total: $2,478 + $253 + $400 + $100 = $3,231. Monthly savings vs 3% down: $74.

10% down ($40,000): Loan $360,000. PMI at 0.6% = $180/month. P&I $2,347. Total: $2,347 + $180 + $400 + $100 = $3,027. Monthly savings vs 5%: $204. vs 3%: $278.

15% down ($60,000): Loan $340,000. PMI at 0.3% = $85/month. P&I $2,216. Total: $2,216 + $85 + $400 + $100 = $2,801. Monthly savings vs 10%: $226.

20% down ($80,000): Loan $320,000. No PMI. P&I $2,086. Total: $2,086 + $400 + $100 = $2,586. Monthly savings vs 15%: $215.

The difference between 3% down and 20% down is $719 per month. Over 30 years, that is $258,840. But saving an extra $68,000 for the 20% down payment might take you years. During those years, home prices might rise. You have to balance monthly affordability with the time it takes to save.

Step-by-Step: Use the Down Payment Calculator

1. Go to trulyfreemortgage.com and select Down Payment Calculator

It is on the main page under "Advanced Options."

2. Enter the home price

Use the price range you are shopping in. Example: $420,000.

3. Enter your down payment amount

Start with what you have saved. Example: $50,000. The calculator will show the down payment percentage (12%).

4. Enter your interest rate

Current 30-year fixed is 6.8%. But your rate may be slightly higher with a lower down payment. Our calculator adjusts the rate automatically based on down payment (lower down = slightly higher rate). You can override.

5. Enter your credit score range

This affects PMI rates. Higher scores get lower PMI.

6. Click "Calculate"

The tool will show your monthly payment, including PMI. It will also show the total PMI paid over time.

7. Use the slider to see different down payment amounts

Slide from 3% to 20%. Watch the monthly payment change. Notice how PMI disappears at 20%.

8. Click the "See Amortization" button

This shows how quickly you build equity with different down payments. With 20% down, you start with $80,000 equity. With 3% down, you start with $12,000 equity. If home prices drop 10%, you are underwater with 3% down.

The Lead-Gen Problem With Free Mortgage Calculators

Bankrate's down payment calculator is embedded in a page that also has a "Find a Lender" form. Even if you do not fill out the form, Bankrate tracks your down payment inputs through cookies. They sell that behavioral data to lenders who target you with ads for "low down payment programs."

NerdWallet's calculator requires you to enter your email to "save your down payment goals." Once you enter, you are added to their home buying newsletter. They will send you "tips" that are really ads for lenders and real estate agents.

LendingTree's down payment tool is not a calculator. It is a single question: "How much can you put down?" Then they ask for your contact information to "match you with lenders who accept low down payments."

Truly Free Mortgage Calculator does not track your inputs. There are no cookies. No "save my results" feature because I do not want your data. You use the calculator, you see the numbers, you close the tab. That is it.

Calculate Your Down Payment Options Free

No account. No email. Runs in your browser.

Frequently Asked Questions

What is the minimum down payment for a conventional loan in 2026?

For first-time home buyers, 3% down. For repeat buyers, 5% down. However, 3% down loans have stricter income limits and require the borrower to complete a homeownership education course.

How much down payment do I need for a $500,000 home with an FHA loan?

FHA requires 3.5% down, which is $17,500. But FHA loan limits vary by county. In most counties, the limit is over $500,000, so you are fine. Check HUD's website for your county.

Is it worth putting 20% down to avoid PMI if it empties my savings?

No. You should have an emergency fund of 3-6 months of expenses after closing. If putting 20% down leaves you with no cash reserves, put less down and accept PMI. The cost of PMI is temporary. The cost of being broke after a job loss is permanent.

How does down payment size affect my interest rate?

Larger down payments (20%+) typically get the best rates. Smaller down payments (5-10%) add 0.25-0.5% to the rate. Our calculator adjusts the rate automatically based on down payment and credit score.

Can I use gift money for my down payment?

Yes. For conventional loans, gift money is allowed for down payment as long as the donor provides a gift letter. For FHA, gift money is allowed even for the entire down payment. The donor cannot be the seller or real estate agent.

Should I put extra money toward down payment or keep it for repairs?

Keep at least 1-2% of the home price for immediate repairs and maintenance. On a $400,000 home, that is $4,000 to $8,000. After that, put any extra toward down payment. A larger down payment reduces your monthly payment permanently.

Use the down payment calculator to find the sweet spot for your savings. You might not need 20%. You might be ready with 10% or even 5%. The numbers will tell you.

Figures on this page are for educational purposes only. Rates, PMI rates, and program rules vary by lender, location, and borrower profile. Consult a licensed lender for loan-specific figures. Truly Free Mortgage Calculator does not collect personal data and does not connect users with lenders.

Related Guides

PMI Calculator Guide

When you need PMI and exactly when you can drop it.

How Much House Can I Afford?

The 28/36 rule with real 2026 numbers — not lender sales math.

FHA vs Conventional Loan 2026

Which loan type actually costs less for your credit score.

Closing Costs Explained

Every fee on the Closing Disclosure, broken down in dollars.

WRITTEN BY

George Smith

Founder, Klickify Agency

info@klickifyagency.com LinkedIn

George builds free web tools that respect user privacy. Founder of Klickify Agency.