How different down payment percentages change your loan amount, loan-to-value ratio, and the monthly saving needed to reach the down payment in time. The 80% LTV line is where mortgage insurance is typically no longer required.
Down payment %
Down payment
Loan amount
LTV
Monthly to save
3%
$12,000
$388,000
97%
$500
5%
$20,000
$380,000
95%
$833
10%
$40,000
$360,000
90%
$1,667
15%
$60,000
$340,000
85%
$2,500
20%
$80,000
$320,000
80%
$3,333
25%
$100,000
$300,000
75%
$4,167
Estimates only — not financial, tax, or professional advice.
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What it calculates: Down Payment, Loan Amount, Loan-to-Value (LTV), Monthly Savings Needed.
Updated 5 June 2026 · Transparent assumptions
$80,000 on a $400,000 house, and what it buys you is the absence of PMI
A 20% deposit on $400,000 is $80,000, leaving a $320,000 loan and an 80% loan-to-value. The convention exists because 80% LTV is the threshold at which most lenders stop requiring private mortgage insurance — a premium that protects the lender if you default and pays you nothing.
Below 20% the loan is still available in most markets, often from 3% to 10% down, but with PMI on top of the payment until the balance falls far enough. The deposit is not a legal requirement; it is the price of avoiding an insurance premium and, usually, of securing a better rate.
$80,000 in two years is $3,333 a month, which is the real test
The months-to-save field converts an abstract target into the figure that decides whether the plan is possible. $80,000 over 24 months is $3,333 every month with nothing already saved, which for most households is the point at which either the timeline or the price has to move.
Three levers exist and they trade against each other. Extend the timeline and the monthly figure falls but prices may not wait. Lower the deposit percentage and the monthly saving drops sharply while PMI and a higher rate raise the eventual payment. Lower the price and everything improves at once, which is why the price is usually the honest variable.
Every extra dollar down is a dollar not invested and not liquid
Increasing the deposit reduces the loan, the interest paid over the term, and the monthly payment. Against that: the money is locked into the property, recoverable only by selling or borrowing against it, and it earns the mortgage rate rather than whatever else it might have made.
The comparison is the mortgage rate against your realistic alternative return, after tax. At a 7% mortgage, extra deposit is a guaranteed 7% and hard to beat. At 3% it is a poor use of capital that could be invested or, more importantly, kept as an emergency fund — buying a house with no reserves left is the most common way a first purchase goes wrong.
Closing costs, moving, and the first repair
The deposit is one of several sums needed at once. Closing costs typically add 2-5% of the price, and they are separate cash — a $400,000 purchase with 20% down needs roughly $88,000 to $100,000 in total, not $80,000.
Beyond closing there is moving, immediate repairs, and furniture for a larger place. Lenders in many markets also require proof of reserves after closing. Budgeting the deposit alone and arriving at completion with nothing left over is a frequent and avoidable mistake.
Sources & References
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Results are estimates based on the figures you enter and standard formulas. Rates, fees, taxes, and lender terms vary and change over time, so confirm important numbers with your lender or a qualified professional. This is educational information, not financial advice.
Published the calculator with its formula, worked example, assumptions, limitations and a bespoke guide, and added an automated formula test suite covering it.
Verified that the deposit, loan and LTV always reconcile to the price, and that the monthly saving figure closes the gap in the months given.
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