Down Payment Calculator
Use our Down Payment Calculator to estimate how much money you may need for a home down payment, the loan amount remaining, and cash needed when closing costs are added.
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How to Use the Down Payment Calculator
- 1
Enter the home price
Enter the purchase price of the home you are considering. For example, home price: $400,000.
- 2
Choose a down payment percentage
Enter the percentage of the purchase price you plan to pay upfront. For a $400,000 home, 10% down = $40,000.
- 3
Or enter a down payment amount
If you already know how much cash you have available, enter the dollar amount instead. $60,000 on a $400,000 home is 15%.
- 4
View your estimated loan amount
Your estimated mortgage amount is generally Home Price − Down Payment. For example, $400,000 − $60,000 = $340,000, before financed fees or other loan-specific adjustments.
Down Payment Formula
The basic formula for calculating a down payment is:
Down payment
When using a percentage, convert it to decimal form. For a $350,000 home with 10% down: $350,000 × 0.10 = $35,000. The estimated mortgage amount would be $350,000 − $35,000 = $315,000.
How to Calculate Down Payment Percentage
If you know the home price and the amount you have available, use:
Percentage
Example: home price $500,000 and down payment $75,000. $75,000 ÷ $500,000 × 100 = 15%.
Down Payment Examples
Suppose you are buying a $400,000 home. Here is how different down payments compare:
| Down payment | Cash down | Estimated loan amount |
|---|---|---|
| 3% | $12,000 | $388,000 |
| 5% | $20,000 | $380,000 |
| 10% | $40,000 | $360,000 |
| 15% | $60,000 | $340,000 |
| 20% | $80,000 | $320,000 |
| 25% | $100,000 | $300,000 |
A larger down payment generally means you need to borrow less. The amount you should put down depends on your mortgage options, available savings, closing costs, and financial situation.
How Much Is a 3%, 5%, 10%, or 20% Down Payment?
| Home price | 3% down |
|---|---|
| $200,000 | $6,000 |
| $300,000 | $9,000 |
| $400,000 | $12,000 |
| $500,000 | $15,000 |
| $600,000 | $18,000 |
A 5% down payment on a $350,000 home is $17,500, leaving an estimated loan of $332,500. A 10% down payment on a $500,000 home is $50,000, leaving $450,000 financed. A 20% down payment on a $400,000 home is $80,000, leaving $320,000 financed.
Do You Need 20% Down to Buy a House?
No. The down payment required depends on the mortgage program, lender requirements, property, and borrower qualifications. Some mortgage options may allow much smaller down payments.
Compare several scenarios such as 3%, 5%, 10%, 15%, and 20% down, then discuss your actual eligibility and mortgage terms with the appropriate lender.
Down Payment vs. Loan Amount
The down payment and loan amount are two different parts of the purchase price. If the home price is $450,000 and the down payment is $90,000, the down payment percentage is 20% and the estimated mortgage amount is $360,000. Together they equal the $450,000 purchase price.
How Does a Down Payment Affect Your Mortgage?
- Loan amount
- A larger down payment means a smaller mortgage balance. On a $400,000 home, 5% down finances $380,000 and 20% down finances $320,000 — a $60,000 difference.
- Monthly mortgage payment
- Borrowing less can reduce the principal-and-interest portion of your monthly payment when other loan terms remain the same. Use our Mortgage Calculator after calculating your down payment.
- Interest cost
- A smaller mortgage principal can reduce the amount on which interest is charged. Actual interest also depends on rate, term, mortgage type, payment schedule, and fees.
- Mortgage insurance
- Some mortgages with smaller down payments may require mortgage insurance. Exact requirements depend on the mortgage program.
Down Payment and Private Mortgage Insurance (PMI)
PMI may apply to certain conventional mortgages when the borrower has a smaller equity position at purchase. A down payment below 20% is commonly associated with PMI on conventional mortgages, although actual requirements depend on the loan.
PMI is not the same as homeowners insurance. PMI primarily protects the lender if the borrower does not repay the mortgage according to its terms. Because it can increase monthly housing costs, compare both less than 20% down and 20% or more down.
Down Payment vs. Closing Costs
- Down payment
- The portion of the home's purchase price you pay upfront.
- Closing costs
- Additional expenses associated with completing the home purchase and mortgage, such as origination, appraisal, title, taxes, insurance, and prepaid items.
If you have $50,000 available, you should not automatically assume the entire amount can go toward the down payment. You may also need money for closing costs and other expenses.
Cash needed
A $40,000 down payment plus $10,000 estimated closing costs is about $50,000 before other credits, deposits, or adjustments.
What Down Payment Can I Afford?
If you know how much money you have available, work backward. $30,000 on a $375,000 home is $30,000 ÷ $375,000 × 100 = 8%.
You can also estimate a home price from cash available. If $40,000 is 10% down, $40,000 ÷ 0.10 = $400,000. That does not mean you automatically qualify for a $400,000 mortgage.
Use our House Affordability Calculator for a broader estimate based on income, debts, and housing costs.
Is a Bigger Down Payment Always Better?
Not necessarily. A larger down payment can reduce the mortgage amount, monthly principal-and-interest payment, and interest charged on the borrowed principal. It may also affect mortgage insurance and loan pricing.
Putting more money into the down payment also leaves less cash for closing costs, emergency savings, moving, repairs, furniture, and maintenance. The goal is not simply to choose the largest possible down payment.
5% vs. 10% vs. 20% Down Payment
On a $500,000 home:
| Option | Down payment | Estimated mortgage |
|---|---|---|
| 5% | $25,000 | $475,000 |
| 10% | $50,000 | $450,000 |
| 20% | $100,000 | $400,000 |
Down Payment for First-Time Homebuyers
First-time homebuyers should not automatically assume that purchasing a home requires saving 20% of the purchase price. Different mortgage programs can have different down payment requirements, and some are designed to make homeownership possible with smaller down payments for qualifying borrowers.
Consider the down payment together with closing costs, emergency savings, the monthly mortgage payment, property taxes, homeowners insurance, possible mortgage insurance, and repairs.
Can a Down Payment Be Too Small or Too Large?
A smaller down payment means a larger portion of the purchase price must generally be financed. That can mean a larger mortgage balance, a higher principal-and-interest payment, more interest exposure, and possible mortgage insurance. It may also allow a buyer to purchase sooner while retaining more cash.
Putting more money down reduces the mortgage amount, but it also converts more of your available cash into home equity. Before using nearly all savings, consider whether you will still have enough for closing, emergencies, moving, immediate repairs, and other obligations.
Frequently Asked Questions
A down payment calculator estimates how much money you would pay upfront toward a home purchase based on the home's price and your selected down payment percentage. It can also calculate the estimated mortgage amount remaining after the down payment.
Multiply the purchase price by the down payment percentage. Down Payment = Home Price × Down Payment Percentage. For example, $300,000 × 10% = $30,000.
$300,000 × 0.03 = $9,000. A 3% down payment on a $300,000 home is $9,000.
$300,000 × 0.05 = $15,000. The down payment would be $15,000.
$300,000 × 0.10 = $30,000. The down payment would be $30,000.
$300,000 × 0.20 = $60,000. The down payment would be $60,000.
$400,000 × 0.20 = $80,000. A 20% down payment would be $80,000.
$500,000 × 0.20 = $100,000. The down payment would be $100,000.
No. Down payment requirements depend on the mortgage program and borrower eligibility. Some qualified buyers may have mortgage options requiring considerably less than 20%.
There is no single minimum that applies to every mortgage. Requirements vary by mortgage program, lender, property, and borrower qualifications.
Generally, a larger down payment reduces the amount you need to borrow. When the interest rate and loan term remain the same, financing a smaller amount results in a lower principal-and-interest mortgage payment.
For many conventional mortgage situations, reaching 20% down can avoid the PMI requirement associated with higher loan-to-value financing. Mortgage insurance rules differ by loan program, so verify the requirements for the mortgage you are considering.
No. The down payment is part of the home's purchase price. Closing costs are separate expenses associated with completing the purchase and mortgage transaction.
They should ideally be displayed separately. A useful down payment calculator can show the down payment plus estimated closing costs to provide a more complete estimate of cash needed.
Use Down Payment Percentage = Down Payment ÷ Home Price × 100. For example, $50,000 ÷ $400,000 × 100 = 12.5%.
It depends on what percentage the $50,000 represents. If $50,000 is 10% down, $50,000 ÷ 0.10 = $500,000. If it is 20% down, $50,000 ÷ 0.20 = $250,000. This only compares home price and down payment. It does not determine mortgage eligibility or affordability.
Not always. Terms such as deposit, earnest money, and down payment can refer to different parts of a real estate transaction. A deposit already paid may sometimes be credited toward the amount required at closing, depending on the transaction.
Yes. The purchase price remaining after the down payment generally forms the starting point for determining how much needs to be financed. Example: $400,000 home price − $80,000 down payment = $320,000 estimated loan amount.
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