Financial Calculators
Down Payment Calculator
Calculate down payment, monthly payments, and PMI for home purchases.
What is the Down Payment Calculator & How does it work?
A down payment is the initial amount paid when purchasing a home. This calculator helps determine the required down payment based on percentages like 3%, 5%, 10%, or 20% of the home’s price. It also calculates the monthly mortgage payments at each level and estimates the Private Mortgage Insurance (PMI) cost if the down payment is less than 20%. PMI protects lenders against default by borrowers who have not made a significant down payment.The formula for calculating the monthly mortgage payment, excluding PMI, is: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1], where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate (annual rate divided by 12), and n is the number of payments (loan term in months). If a down payment less than 20% is made, PMI is added to the monthly payment.
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
M = Monthly Payment, P = Principal Loan Amount, i = Monthly Interest Rate, n = Number of Payments
Parameters
$
3% Down Payment
$—
5% Down Payment
$—
10% Down Payment
$—
20% Down Payment
$—
3% Monthly Payment
$—
5% Monthly Payment
$—
10% Monthly Payment
$—
20% Monthly Payment
$—
PMI Cost (if under 20%)
$—
Results are for informational purposes only and do not constitute professional advice.