Down Payment Calculator — Compare 3.5% vs 20% and See the PMI Impact

The "20% down payment" rule is the most expensive myth in home buying. According to the National Association of Realtors, the median down payment for first-time buyers in 2025 was just 8%. For repeat buyers, 19%.

But putting less than 20% down means PMI — private mortgage insurance — which adds $100-$300/month on a typical loan. The real question isn't "should I put 20% down?" It's "does the PMI cost outweigh years of waiting?"

Compare down payment scenarios instantly →

What the Calculator Shows

Enter your target home price, choose your loan type (Conventional, FHA 3.5%, VA 0%, USDA 0%), and see a side-by-side comparison:

| Scenario | Down Payment | Monthly P&I | PMI | Total Monthly | |----------|-------------|-------------|-----|---------------| | 3.5% FHA | $14,000 | $2,523 | $175 | $2,698 | | 10% | $40,000 | $2,336 | $130 | $2,466 | | 20% | $80,000 | $2,023 | $0 | $2,023 |

Example: $400K home at 6.5%, 30-year term. Rates per freddiemac.com PMMS, April 2026.

The PMI Break-Even Math

PMI on a conventional loan typically costs 0.5-1% of the loan amount annually. On a $380,000 loan (5% down on $400K), that's $1,900-$3,800/year. PMI drops off automatically at 78% LTV — which takes about 8-11 years on a standard amortization schedule.

If investing your down payment savings would earn more than the PMI cost, lower down payment wins. The calculator runs this comparison for you.

Savings Timeline

Already saving? Enter your current savings and monthly contribution. The calculator shows exactly when you'll hit your target — whether that's 3.5% for FHA or 20% for conventional.

All calculations run in your browser. Based on HUD.gov FHA guidelines, cfpb.gov PMI rules, and Fannie Mae conventional limits. Updated April 2026.

Plan your down payment → | More mortgage tools

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Originally published at https://tool.teamzlab.com?utm_source=blogger&utm_medium=article&utm_campaign=2026-05-down-payment-calculator

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