Down Payment Calculator
Turn a home price and percentage into cash and loan amounts.
Results update as you type.
How it works
The down payment is the slice of a home's price you pay in cash upfront, and it shapes almost everything about the mortgage that follows. A down payment calculator translates a percentage into a concrete dollar figure so you can see exactly how much you must save, then shows the loan amount left to finance once that cash is applied. Enter a $400,000 home and a 20% target and the split appears at once. The size of your down payment ripples through the whole deal. A larger one lowers your loan-to-value ratio, often helping you dodge private mortgage insurance, unlock better interest rates, and shrink both the balance and the total interest paid across the life of the loan. A smaller one preserves cash for moving, repairs, or emergencies but usually costs more each month. The math works because the down payment and the mortgage always add up to the purchase price, so fixing one determines the other. Choosing a percentage is a balancing act between the appeal of buying sooner with less saved and the long-run savings of borrowing less. First-time buyers especially benefit from testing several percentages, since seeing the cash requirement and resulting loan side by side makes the trade-offs concrete rather than abstract.
Down payment = price × percent
Multiplying the home price by your chosen percentage converts a proportion into the exact cash you must bring to closing. Because the down payment and the mortgage together cover the full purchase price, subtracting that cash from the price leaves the amount you need to finance. Raising the percentage shifts money from the loan to your upfront outlay, shrinking the balance you borrow and the interest you eventually pay.
Source:Consumer Financial Protection Bureau
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter home price and down payment percentage.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Down payment updates instantly as you type — no button to press.
Frequently asked questions
How much down payment do I actually need?
It depends on the loan. Twenty percent is the classic target because it avoids private mortgage insurance and secures strong rates, but many programs accept far less: conventional loans can start near 3%, and some government-backed options go lower still. A bigger down payment lowers your monthly cost and total interest, while a smaller one lets you buy sooner. Match the figure to your savings and monthly budget.
What happens if I put down less than 20%?
You can usually still buy, but lenders typically require private mortgage insurance, an extra monthly premium that protects them against default. Your loan-to-value ratio starts higher, your monthly payment is larger, and you pay more interest overall because you financed more. As you repay the balance or the home appreciates, you can often request that the insurance be removed once your equity reaches roughly 20%.
Does the down payment cover closing costs too?
No. The down payment is applied directly to the home's purchase price, while closing costs are separate fees for the loan, title, and services, usually running around 2% to 5% of the price. Budget for both, since you need the down payment plus closing costs in cash at settlement. Estimating each separately prevents an unpleasant surprise when the final figure to close arrives.
Is a bigger down payment always better?
Not necessarily. A larger down payment cuts your loan, monthly payment, and lifetime interest, which is genuinely valuable. But draining your savings to reach it can leave you without reserves for repairs, moving, or emergencies, and the cash might earn more invested elsewhere. The right amount balances the guaranteed savings of borrowing less against the security and flexibility of keeping a healthy cash cushion.
Can down payment money come from a gift?
Often, yes. Many loan programs allow gift funds from family toward a down payment, though lenders usually require a gift letter confirming the money is not a loan and may ask to trace its source. Rules on how much can be gifted and whether any of your own funds are required vary by loan type, so confirm the specifics with your lender before relying on gifted cash.