Down Payment Calculator
A down payment calculator translates a percentage into the three numbers that actually matter when you buy: the cash you need up front, the loan you will carry afterward, and your loan-to-value (LTV) ratio. LTV is the figure lenders watch most closely, because it decides whether you owe private mortgage insurance (PMI). Enter a price and a down percentage to see all three at once and where you land against the 80% line.
- Down payment
- Financed amount
- Loan amount
- $280,000.00
- Loan-to-value (LTV)
- 80.00%
- Down payment
- 20.00%
Your loan-to-value (LTV) is 80.0%, at or below the common 80% threshold, so you generally clear the line where lenders require private mortgage insurance (PMI). That avoids an extra monthly premium and means more of every payment goes toward the loan itself.
How it works
The down payment itself is simple arithmetic: the home price times the percentage you put down. Whatever is left is the loan you finance. The number that drives lender decisions, though, is the loan-to-value ratio — the loan divided by the price, expressed as a percentage. A 20% down payment leaves an 80% loan, which is an 80% LTV.
80% is the line that matters. At or below it, lenders generally treat the loan as well-secured and waive private mortgage insurance. Above it — meaning you put down less than 20% — the lender carries more risk if you default, and typically charges PMI, an extra monthly premium that protects the lender rather than you. PMI usually falls away once your LTV drops back to 80% through payments or rising value, but until then it is dead weight on every payment.
That makes the gap between your down payment and the 20% mark a concrete, costable target. This calculator shows your exact LTV and, when you are above 80%, how much more cash would close the gap.
Down payment = home price × down %. Loan amount = home price − down payment. Loan-to-value (LTV) = loan amount ÷ home price × 100. The 80% LTV line (20% down) is the threshold below which lenders typically waive private mortgage insurance.
Worked example
On a 350,000 home with 20% down, the down payment is 70,000 and you finance 280,000 — an LTV of exactly 80%, right on the threshold, so no PMI is typically required. Drop to 10% down and the picture changes: the down payment is 35,000, the loan is 315,000, and the LTV rises to 90%. That is above 80%, so PMI would usually apply. Reaching 80% LTV would take 70,000 down — about 35,000 more than the 10% you put in.
Things to watch out for
At 100% down the loan and LTV are both zero — you are buying outright with no financing. At 0% down the LTV is 100% and the entire price is borrowed, which most lenders will not allow without special programs and which carries the highest PMI cost. The 80% PMI rule is a widely used convention rather than a universal law: some loan programs and some countries handle low-down-payment loans differently, so treat the threshold as a strong default, not an absolute. This tool covers the down payment and LTV only — use the mortgage calculator to see the monthly payment on the resulting loan.
Frequently asked questions
What is loan-to-value (LTV)?+
LTV is the loan amount divided by the property price, shown as a percentage. A 20% down payment produces an 80% LTV. Lenders use it to gauge risk: the lower the LTV, the more equity you hold and the safer the loan looks to them.
Why does 20% down matter so much?+
A 20% down payment puts you at 80% LTV, the common line at or below which lenders waive private mortgage insurance (PMI). Below 20% down, you usually pay PMI — an extra monthly premium that protects the lender, not you.
Can I put down less than 20%?+
Often yes. A smaller down payment means a larger loan, a higher LTV, and usually private mortgage insurance until your LTV falls back to 80%. It lets you buy sooner but raises both your monthly cost and your total interest.
Does a bigger down payment lower my monthly payment?+
Yes, in two ways. It shrinks the loan you finance, which lowers the principal-and-interest payment, and if it takes you to 80% LTV it can remove PMI as well. Use the mortgage calculator to see the payment on the resulting loan.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22