🏠 Down Payment Calculator
Calculate your home down payment
How to Use This Calculator
Enter Home Price
Input the total purchase price of the home you're planning to buy.
Enter Down Payment Percentage
Input your desired down payment percentage (typically 5%, 10%, 15%, 20%, or 25%). You can use the quick-select buttons or enter a custom percentage.
Review Results
See your calculated down payment amount and the resulting loan amount you'll need to finance.
Formula
Down Payment = Home Price × (Down Payment Percentage / 100)
Loan Amount = Home Price - Down Payment
Example 1: 20% Down Payment
Home Price: $300,000
Down Payment: 20%
Down Payment = $300,000 × 0.20 = $60,000
Loan Amount = $300,000 - $60,000 = $240,000
Example 2: 10% Down Payment
Home Price: $400,000
Down Payment: 10%
Down Payment = $400,000 × 0.10 = $40,000
Loan Amount = $400,000 - $40,000 = $360,000
Example 3: 5% Down Payment (FHA Loan)
Home Price: $250,000
Down Payment: 5%
Down Payment = $250,000 × 0.05 = $12,500
Loan Amount = $250,000 - $12,500 = $237,500
About Down Payment Calculator
The Down Payment Calculator is an essential tool for homebuyers planning to purchase a property. A down payment is the initial upfront payment made when buying a home, representing a percentage of the total purchase price. This calculator helps you determine exactly how much money you'll need for your down payment and how much you'll need to finance through a mortgage loan.
Understanding your down payment requirements is crucial for home buying planning, as it affects your loan amount, monthly mortgage payments, interest costs, and whether you'll need to pay Private Mortgage Insurance (PMI). The standard down payment is 20% of the home price, but many loan programs allow lower down payments, such as 3-5% for conventional loans, 3.5% for FHA loans, and even 0% for VA loans for eligible veterans.
This calculator simplifies the process of determining your down payment amount and loan requirements. By entering the home price and your desired down payment percentage, you can instantly see how much cash you'll need upfront and how much you'll need to borrow. This information is essential for budgeting, saving goals, loan pre-approval, and making informed decisions about your home purchase.
When to Use This Calculator
- Home Purchase Planning: Determine down payment needed for your target home price
- Budget Planning: Calculate how much you need to save for a down payment
- Loan Comparison: Compare different down payment options and their impact on loan amounts
- Affordability Analysis: Understand how down payment affects your financing needs
- PMI Assessment: Determine if your down payment is sufficient to avoid PMI (typically 20%)
- Loan Pre-Approval: Calculate down payment requirements before applying for mortgages
Why Use Our Calculator?
- ✅ Quick Calculations: Instantly calculate down payment and loan amounts
- ✅ Easy to Use: Simple interface with quick-select percentage buttons
- ✅ Accurate Results: Precise calculations for financial planning
- ✅ Free Tool: No registration or fees required
- ✅ Financial Planning: Helps plan and budget for home purchases
- ✅ Mobile Friendly: Calculate on any device
Understanding Down Payments
Down payments serve multiple purposes in home buying. They reduce the lender's risk by ensuring you have equity in the property, which makes you less likely to default. Larger down payments typically result in better loan terms, including lower interest rates, no PMI requirements (for 20%+ down), and lower monthly payments. However, saving for a large down payment can delay homeownership, which is why many buyers opt for lower down payment programs.
The most common down payment percentages are: 20% (traditional standard, avoids PMI), 10-15% (conventional loans with PMI), 5% (conventional loans, requires PMI), 3.5% (FHA loans), and 0% (VA loans for eligible veterans, USDA loans in rural areas). Each option has different requirements, costs, and benefits that should be carefully considered based on your financial situation and home buying goals.
Real-World Applications
First-Time Homebuyer: A first-time buyer looking at a $300,000 home with a 10% down payment needs $30,000 upfront and will finance $270,000. This calculator helps them understand their savings goal and loan requirements.
Avoiding PMI: A buyer wants to avoid Private Mortgage Insurance (PMI), which typically requires a 20% down payment. For a $400,000 home, they need $80,000 down to avoid PMI, saving hundreds of dollars per month in insurance costs.
FHA Loan Planning: A buyer qualifies for an FHA loan with a 3.5% down payment. For a $250,000 home, they only need $8,750 down, making homeownership more accessible with a lower upfront cost.
Important Considerations
- Down payments of less than 20% typically require PMI, which adds to monthly costs
- Larger down payments reduce loan amounts and total interest paid over the life of the loan
- Consider closing costs (typically 2-5% of home price) in addition to down payment
- Different loan programs have different minimum down payment requirements
- Down payment funds must be verified and sourced (savings, gifts, etc.)
- Balance down payment size with maintaining emergency funds and other financial goals
Frequently Asked Questions
What is a down payment?
A down payment is the initial upfront payment made when purchasing a home, representing a percentage of the total purchase price. The remainder is financed through a mortgage loan. Down payments demonstrate financial commitment and reduce the lender's risk.
How much down payment do I need?
Down payment requirements vary by loan type. Conventional loans typically require 3-20%, FHA loans require 3.5% (with good credit) or 10% (with lower credit), VA loans require 0% for eligible veterans, and USDA loans require 0% in eligible rural areas. The traditional standard is 20%, which avoids PMI.
What is PMI and when do I need it?
PMI (Private Mortgage Insurance) is required for conventional loans with less than 20% down payment. It protects the lender if you default and typically costs 0.5-1% of the loan amount annually. PMI can be removed once you reach 20% equity in your home.
Should I put down 20% or a smaller down payment?
A 20% down payment avoids PMI and results in lower monthly payments, but requires more upfront cash. Smaller down payments allow you to buy sooner and keep more cash for emergencies or investments, but require PMI and result in higher monthly payments. Consider your financial situation, market conditions, and long-term goals.
Can I use gift money for a down payment?
Yes, gift money can be used for down payments, but lenders require documentation including a gift letter, proof of the donor's ability to give, and evidence the funds were transferred. There are limits and requirements that vary by loan type, so check with your lender.
Are there down payment assistance programs?
Yes, many state and local programs offer down payment assistance for first-time homebuyers, low-to-moderate income buyers, and specific professions (teachers, first responders, etc.). These programs may provide grants, low-interest loans, or matched savings. Research programs in your area.