Down Payment Calculator
A down payment is the upfront portion of a property's purchase price that you pay out of pocket, with the remainder financed through a mortgage or loan. This calculator lets you enter the home price and either a percentage or a fixed dollar amount to instantly see how much you'll owe at closing and how large your financed loan will be.
Lenders typically require private mortgage insurance (PMI) when your down payment is below 20% of the purchase price, which adds to your monthly costs. Understanding the relationship between your down payment, loan amount, and interest charges is essential for planning a home purchase within your budget.
How it works
Down Payment Amount = Property Price × (Down Payment % ÷ 100). Loan Amount = Property Price − Down Payment Amount. Down Payment % = (Down Payment Amount ÷ Property Price) × 100.
Use cases
- Planning a first home purchase and estimating how much cash you need upfront
- Comparing different down payment scenarios to find the right balance
- Checking whether your down payment exceeds the 20% PMI threshold
- Calculating financed loan amounts to estimate monthly mortgage payments
- Preparing a savings goal timeline for a future home purchase
Frequently asked questions
How do I calculate a down payment?
Multiply the property price by the down payment percentage divided by 100: Down Payment = Price × (% ÷ 100). The financed loan is what remains: Loan Amount = Price − Down Payment. Working backwards, the percentage equals (Down Payment ÷ Price) × 100.
How much is a 10% down payment on a $300,000 house?
A 10% down payment on a $300,000 home is $30,000 (300,000 × 0.10), leaving a loan amount of $270,000. At 20%, the down payment doubles to $60,000 and the financed balance drops to $240,000, which also typically eliminates the PMI requirement.
What happens if I put less than 20% down?
Lenders typically require private mortgage insurance (PMI) when the down payment is below 20% of the purchase price. PMI protects the lender, not you, and it adds to your monthly housing cost until you build sufficient equity. A smaller down payment also means a larger loan balance and more total interest paid over the term.
How much down payment do I need to buy a house?
The classic benchmark is 20% of the purchase price, because it avoids PMI and reduces interest costs. However, many loan programs accept far less — some conventional loans start around 3% and government-backed programs around 3.5% — at the cost of mortgage insurance and higher monthly payments. The right amount depends on your savings, local requirements, and how much monthly payment you can carry.
Is it better to make a larger down payment?
A larger down payment shrinks the loan amount, lowers the monthly payment, reduces total interest, and can eliminate PMI once you cross the 20% threshold. The trade-off is liquidity: money locked into the home is unavailable for emergencies, investments, or moving costs. Many buyers aim for 20% while keeping an emergency fund intact.