Down Payment Calculator
Calculate the required down payment amount and total loan size for home purchases based on different percentage options like 3%, 5%, 10%, or 20%.
Calculation Results
The cash down payment required at purchase.
The remaining amount to be financed through a mortgage.
How This Calculator Works
To estimate your down payment requirement:
- Enter the estimated home purchase price.
- Specify the down payment percentage (e.g. 3% for minimum FHA/conventional, 5%, 10%, or 20% to avoid PMI).
The calculator displays the exact dollar amount of cash you need to put down and the mortgage amount you will need to borrow.
Formula & Calculations
The down payment amount is calculated by multiplying the home purchase price by the down payment percentage:
Down Payment Amount = Home Price × (Down Payment Percentage / 100)
The financed loan amount is the home price minus the cash down payment:
Mortgage Loan Amount = Home Price - Down Payment Amount
Step-by-Step Calculation Examples
20% Down Payment on $450,000 Home
Putting 20% down to bypass private mortgage insurance on a standard $450,000 suburban property.
- home_price: 450000
- down_payment_pct: 20
- down_payment_amount: $90,000.00
- loan_amount: $360,000.00
Frequently Asked Questions
Do I have to put 20% down to buy a house?
No. While 20% is recommended because it avoids Private Mortgage Insurance (PMI), many buyers put down much less. Conventional loans allow as little as 3% down, FHA loans require 3.5%, and VA or USDA loans allow 0% down.
What is Private Mortgage Insurance (PMI)?
PMI is insurance that protects the lender in case you default on the loan. It is typically required on conventional loans if your down payment is less than 20%. The cost ranges from 0.2% to 1.5% of the loan amount annually.
Are there closing costs in addition to the down payment?
Yes. Beyond your down payment, you must pay closing costs, which typically range from 2% to 5% of the purchase price. These must be paid in cash at the closing table.