ReckonBoxHow the down payment calculator works
A down payment is the cash you pay upfront on a property, and the rest becomes your loan, so the down payment sets both the loan size and the extra costs that come with a small deposit. This tool has a region switch, because the rules differ. In India mode it works in rupees, returns an EMI and a processing fee, and reflects that lenders finance up to about 90% of price. In US mode it works in dollars, returns a mortgage payment, and adds PMI when you put down less than 20%.
Take the India default. On a Rs 40,00,000 home with 20% down, you pay Rs 8,00,000 upfront and borrow Rs 32,00,000, and at 8.5% over 20 years the EMI is Rs 27,770. Switch to the US default and a $400,000 home with 20% down leaves a $320,000 loan at about $2,129 a month at 7% over 30 years, with no PMI because 20% down puts the loan-to-value at 80%.
How much you need down
The minimum down payment depends on the country and the loan type, not on a single universal number. In India, lenders finance up to roughly 90% of the property price, so a 10% to 20% down payment is the usual range. In the US, conventional loans can start near 3% down, FHA loans at 3.5%, and VA and USDA loans at 0% for eligible buyers, while 20% is the level that clears private mortgage insurance rather than a floor to qualify.
The tier tables below show the trade at each common down payment, holding the rate and term fixed, so you can read off the loan, the monthly payment and the lifetime interest without re-running the tool.
India: EMI by down payment
In India mode the calculator finances up to about 90% of the price and shows the EMI, so the tiers run from a 10% down payment upward. A bigger down payment shrinks the loan and the EMI, and it cuts lakhs of interest across a 20-year term.
| Down payment | Loan amount | Monthly EMI | Total interest |
|---|---|---|---|
| 10% (Rs 4,00,000) | Rs 36,00,000 | Rs 31,242 | Rs 38,98,080 |
| 15% (Rs 6,00,000) | Rs 34,00,000 | Rs 29,506 | Rs 36,81,440 |
| 20% (Rs 8,00,000) | Rs 32,00,000 | Rs 27,770 | Rs 34,64,800 |
| 25% (Rs 10,00,000) | Rs 30,00,000 | Rs 26,035 | Rs 32,48,400 |
| 30% (Rs 12,00,000) | Rs 28,00,000 | Rs 24,299 | Rs 30,31,760 |
India has no PMI. Instead the lender takes a one-off processing fee on the loan, usually around 0.5%, so on the default Rs 32,00,000 loan that's about Rs 16,000, which the cash-needed figure adds to your down payment.
US: down payment, PMI and the tier table
In US mode a down payment under 20% carries private mortgage insurance, a monthly charge of about 0.5% to 1% of the loan a year, until the balance falls to 80% of the price. On a $360,000 loan at 0.7% that's roughly $210 a month, and on the $400,000 home the cancellation point is a $320,000 balance.
| Down payment | Loan amount | Monthly P&I | Total interest |
|---|---|---|---|
| 0% ($0) | $400,000 | $2,661 | $557,960 |
| 3% ($12,000) | $388,000 | $2,581 | $541,160 |
| 3.5% ($14,000) | $386,000 | $2,568 | $538,480 |
| 5% ($20,000) | $380,000 | $2,528 | $530,080 |
| 10% ($40,000) | $360,000 | $2,395 | $502,200 |
| 20% ($80,000) | $320,000 | $2,129 | $446,440 |
Only the 20% row is clear of PMI, which is the whole reason that number gets so much attention. The 0% row is the VA and USDA case for eligible buyers, and it carries the largest loan, the highest payment and the most interest of any tier.
The monthly payment formula
Both modes use the same amortization formula: M = P times r times (1 + r) to the power n, divided by (1 + r) to the power n minus 1, where P is the loan, r the monthly rate and n the number of months. The monthly rate is the annual rate divided by 12, so 8.5% a year is about 0.00708 a month and 7% is about 0.00583. A larger down payment shrinks P, which pulls down the payment and, in the US, the PMI that rides on the same loan.
Term changes the picture too. India home loans usually run 20 years and US mortgages 30, and a shorter term raises the monthly figure while cutting the total interest sharply, because the balance clears faster.
What this does not cover
The monthly figure is the loan payment, plus PMI in US mode. It leaves out property tax and home insurance, which a US lender usually collects in escrow, and it leaves out registration, stamp duty and GST on under-construction property in India. Rates, fees and financing caps vary by lender, loan type and your credit, and eligibility for 0%-down US programs has its own rules. Treat this as planning, not financial or lending advice, and confirm the exact figures with your bank or loan officer before you commit.
Frequently asked questions
What is a down payment calculator? A down payment calculator works out the cash you pay upfront on a property, the loan it leaves, and the monthly payment that follows. Set the region to India or the US, since the rules differ: on a Rs 40,00,000 home with 20% down the loan is Rs 32,00,000 with an EMI near Rs 27,770 at 8.5% over 20 years, while a $400,000 US home with 20% down leaves a $320,000 loan at about $2,129 a month at 7% over 30 years.
How much down payment do I need? In India, lenders finance up to about 90% of the property price, so a down payment of 10% to 20% is typical. In the US, conventional loans can start at 3% down, FHA at 3.5%, and VA and USDA at 0% for eligible buyers, while 20% down is the level that avoids private mortgage insurance.
What is PMI and does it apply in India? Private mortgage insurance, or PMI, is a US monthly charge that applies when the down payment is below 20%, because the loan-to-value is above 80%, and it costs about 0.5% to 1% of the loan a year. India has no PMI; instead Indian lenders charge a one-off processing fee on the loan, usually around 0.5%.
How does the down payment change the monthly payment? A larger down payment means a smaller loan, so the monthly payment falls, and in the US any PMI falls with it. The monthly payment uses the amortization formula M = P times r times (1 + r) to the power n, divided by (1 + r) to the power n minus 1, where P is the loan, r the monthly rate and n the number of months.
Why is 20% down the number people mention in the US? A 20% down payment brings the loan-to-value to 80%, the level at which US conventional lenders stop requiring PMI, so it removes the monthly insurance cost. It also shrinks the loan and the payment, which is why the US tier table shows the 20% row carrying no PMI.
How much cash do I need upfront? Upfront cash is the down payment plus the other costs of closing the loan. In the US that means closing costs of about 2% to 5% of the price, so on a $400,000 home a 3% estimate is $12,000. In India it is the processing fee on the loan, around 0.5%, added to the down payment.
Can I buy with no down payment? In the US, VA loans for eligible veterans and USDA loans in eligible rural areas allow 0% down, which is the zero-down row in the US tier table. In India a fully zero-down home loan is rare because lenders cap financing near 90% of price, though some vehicle loans go higher.