Down Payment Calculator: How Much Should You Put Down?

Name: Down Payment Calculator: How Much Should You Put Down?
Author: Acun Özdilek

This down payment calculator shows what a bigger deposit buys: on a $350,000 home, putting 20% down instead of 5% takes $52,500 more cash at closing, cuts the starting payment by about $470 a month and saves $82,932 of interest and mortgage insurance.

Example numbers

Home price

Down payment 1

Down payment 2

Down payment 3

Down payment 4

Interest rate

Loan term

30 years

Closing costs

Assumptionsproperty tax rate 1.1%, home insurance $1,800, mortgage insurance rate 0.5%

Property tax rate

Home insurance

Mortgage insurance rate

The verdictfrom an example

Putting 20% down instead of 5% takes $52,500 more cash at closing, cuts the starting payment by $470.38 a month and saves $82,932 of interest and mortgage insurance.

Worked on $350,000 home, 5% to 20% down, 30-year loan. Change anything below to use yours.

Extra cash at closing: $52,500
Lower starting payment: $470.38
Interest and PMI saved: $82,932

The figures behind it

Extra cash at closing: $52,500; $80,500 at 20% down against $28,000 at 5%, closing costs included.
Lower starting payment: $470.38; $2,240.62 against $2,711.00 a month, tax and insurance included.
Interest and PMI saved: $82,932; Over the whole term, against 5% down.
PMI at 5% down: $138.54; Stops in month 125 (10 years, 5 months), $15,974 in all.

Payment scheduleShow

Item	5% down	10% down	15% down	20% down
Down payment
Down payment	$17,500	$35,000	$52,500	$70,000
Cash to close
Cash to close	$28,000	$45,500	$63,000	$80,500
Loan amount
Loan amount	$332,500	$315,000	$297,500	$280,000
Starting monthly payment
Starting monthly payment	$2,711.00	$2,593.09	$2,475.19	$2,240.62
PMI per month
PMI per month	$138.54	$131.25	$123.96	$0.00
PMI stops in month
PMI stops in month	125	96	57	None
Total PMI
Total PMI	$15,974	$11,838	$6,751	$0
Total interest
Total interest	$424,083	$401,768	$379,447	$357,125
Interest + PMI
Interest + PMI	$440,057	$413,606	$386,198	$357,125

What this result assumes

Mortgage insurance is charged while the balance is above 80% of the price, the point at which you can ask your lender to cancel it. You need a good payment record and to be current, and the lender can ask for proof the home has not lost value and has no second loan. If you don’t ask, it ends on its own once the original schedule reaches 78%, provided you are current on payments. This page uses 80%, the same rule as the mortgage calculator.
The starting payment is the first month’s: principal, interest, property tax, insurance and any mortgage insurance. Once mortgage insurance stops, the gap between two down payments narrows to the principal and interest difference.
The same interest rate, closing costs and mortgage insurance rate are used at every down payment. Lenders often charge less for a bigger deposit, so the real gaps may be wider than shown.

Whether that is the best use of the cash depends on what else it could do, and on keeping enough in reserve after closing.

Methodology

Reviewed October 6, 2026 by Acun Özdilek

What is compared

The same home, interest rate and term, bought with four different down payments. Cash to close is the down payment plus closing costs, before any seller or lender credits. The monthly figure is the first month all in: principal, interest, property tax, insurance and mortgage insurance, the same total the mortgage calculator shows for one down payment.

Mortgage insurance

Mortgage insurance follows the same rule as the mortgage calculator. It is charged each month on the opening balance while that balance is above 80% of the price, at the rate you enter. At 80% you can ask your lender in writing to cancel it, if your payment record is good and you are current. The lender can also ask for proof that the home has not lost value and has no second loan against it (Homeowners Protection Act, 12 U.S.C. 4902(a)). If you don’t ask, it ends on its own once the original schedule reaches 78%, provided you are current on payments (4902(b)).

That is why, at the defaults, each five-point step up cuts the starting payment by about $118 until the step to 20%, which cuts it by $234.57: the loan shrinks and the mortgage insurance disappears at the same time.

FHA loans carry their own mortgage insurance premium, which the FHA loan calculator models. VA loans charge a one-off funding fee instead; see the VA loan calculator.

What the extra cash could do instead

Each dollar in a bigger down payment saves interest at the mortgage rate, plus any mortgage insurance it avoids. Whether that beats investing the cash is the question paying off a mortgage versus investing answers. The home affordability calculator covers how large a price your income supports.

Assumptions

One fixed interest rate at every down payment. Lenders often price a bigger deposit lower, which is not modelled.
One mortgage insurance rate at every down payment. In practice it is usually higher for smaller deposits.
Closing costs are a fixed dollar amount. Some charges scale with the loan, which is not modelled.
No seller credits, lender credits or down-payment assistance.
Property tax and insurance are fixed and the same at every down payment.
No loan limits are applied, conforming or FHA.
The home’s value is not projected. Appreciation, which can end mortgage insurance early, is ignored.
Every figure is nominal.
Conventional mortgage insurance only. FHA and VA insurance and fees are not modelled here.

Sources

Common questions

How much should I put down on a $350,000 house?

The answer depends on how much cash you can spare. At the defaults here, 5% down needs $28,000 cash to close and starts at $2,711.00 a month, while 20% down needs $80,500 and starts at $2,240.62. Reaching 20% down removes mortgage insurance on a conventional loan, and lenders also accept less.

Is it worth putting 20% down?

It depends on what else the cash could do. At the defaults, going from 5% to 20% down takes $52,500 more at closing, lowers the starting payment by $470.38 a month and saves $82,932 of interest and mortgage insurance over 30 years. Mortgage insurance at 5% down can be cancelled on request from month 125 (12 U.S.C. 4902(a)). If you don’t ask, it ends automatically later, at 78% of the original schedule (4902(b)). Either way part of that saving has an end date, and cash kept in reserve after closing is a separate consideration. Whether the money would do better invested is what paying off a mortgage versus investing works out.

How much cash do I need to close on a house?

The down payment plus closing costs. Your Loan Estimate shows the total as Estimated Cash to Close. Seller or lender credits reduce it.

Can I buy a house with less than 20% down?

Yes. Conventional loans accept less with mortgage insurance, which this page models. FHA loans need at least 3.5% down and carry their own mortgage insurance; see the FHA loan calculator. Eligible VA borrowers can put nothing down; see the VA loan calculator.

Why does the last step up to 20% down cut the payment so much more?

At these defaults each five-point step saves about $118 a month until the step to 20%, which saves $234.57. That step shrinks the loan like the others and also removes mortgage insurance from the first payment.

Does a bigger down payment get me a lower interest rate?

Often, because lenders price by loan-to-value. This page holds the rate the same at every down payment, so run it again with your lender’s quote for each level.

All mortgage →

Result