Down Payment Calculator with PMI Threshold
Enter your home price and down payment percentage to see the exact dollar amount, your resulting loan balance, and whether PMI is likely. The calculator also shows how much more you'd need to save to clear the 20% threshold — and a side-by-side comparison at 5, 10, 15, 20, and 25 percent.
Down payment
$60,000
Loan amount
$340,000
LTV ratio
85%
PMI
Likely
Extra needed to reach 20% (avoid PMI)
$20,000
Down payment by scenario
Scenario comparison (5 – 25%)
| % | Down | Loan | LTV | PMI |
|---|---|---|---|---|
| 5% | $20,000 | $380,000 | 95% | Yes |
| 10% | $40,000 | $360,000 | 90% | Yes |
| 15% | $60,000 | $340,000 | 85% | Yes |
| 20% | $80,000 | $320,000 | 80% | No |
| 25% | $100,000 | $300,000 | 75% | No |
How it works
Down payment amount is price × percentage; loan amount is price minus that figure. These are exact calculations with no assumptions about rate or term — this tool focuses purely on the equity side of the transaction.
PMI (Private Mortgage Insurance) is typically required on conventional loans when your down payment is below 20% of the purchase price, which corresponds to a loan-to-value (LTV) ratio above 80%. The 20% / 80% LTV line is the standard conventional benchmark used here. FHA, VA, and USDA loan programs have different mortgage-insurance structures not modelled by this calculator.
The gap to 20% is price × 0.20 minus your actual down payment — the extra cash you'd need to avoid PMI on a conventional loan. If you're already at or above 20%, the gap is zero. The comparison table runs five fixed scenarios (5, 10, 15, 20, and 25 percent) against the same price so you can see instantly how each extra percent shifts your loan balance, LTV, and PMI exposure.
Frequently asked questions
Do I always need PMI with less than 20% down?+
On conventional loans, yes — lenders generally require PMI when LTV exceeds 80%. FHA loans require a Mortgage Insurance Premium (MIP) regardless of down payment size. VA loans have no PMI but may charge a funding fee. A piggyback (80/10/10) structure is another route some buyers use to avoid PMI with less than 20% down. Check with your lender for your specific program. This calculator is a planning tool and does not constitute mortgage advice.
How much does PMI typically cost?+
PMI premiums usually run 0.2%–2% of the loan amount per year, depending on your credit score and LTV ratio. On a $340,000 loan that's roughly $57–$567 per month added to your payment. Once your equity reaches 20% you can typically request cancellation; the Homeowners Protection Act requires automatic cancellation at 78% LTV on conforming loans. The loan amount this calculator produces lets you estimate the PMI range for your situation.
Is a larger down payment always the right move?+
A larger down payment lowers your loan balance, reduces lifetime interest, and eliminates PMI once you hit 20%. However, committing too much cash at closing can leave you short on emergency reserves, closing cost coverage, and post-purchase repairs. Most financial planners recommend keeping at least three to six months of expenses in liquid savings after closing. Weigh the interest savings against your liquidity needs before deciding. This calculator does not constitute financial advice.