Home down payment calculator
Down Payment Calculator
Estimate a home down payment, the remaining mortgage amount and how much cash you may need at closing. Use the calculator to compare common down payment levels such as 3.5%, 5%, 10% and 20%.
Down payment summary
Based on the numbers entered, this estimate separates the upfront down payment from the mortgage amount and adds an estimated closing cost amount. Closing costs are included because buyers often need more cash than the down payment alone.
| Item | Estimate |
|---|---|
| Home price | $400,000.00 |
| Down payment percentage | 20.0% |
| Down payment amount | $80,000.00 |
| Estimated loan amount | $320,000.00 |
| Estimated closing costs | $12,000.00 |
| Total estimated cash needed | $92,000.00 |
Common down payment examples
The table below compares common down payment percentages for a $400,000 home. These are planning examples, not loan approvals or lender requirements.
| Down payment | Cash down | Loan amount | Loan-to-value | Cash needed with closing costs |
|---|---|---|---|---|
| 3.5% | $14,000.00 | $386,000.00 | 96.5% | $26,000.00 |
| 5% | $20,000.00 | $380,000.00 | 95.0% | $32,000.00 |
| 10% | $40,000.00 | $360,000.00 | 90.0% | $52,000.00 |
| 20% | $80,000.00 | $320,000.00 | 80.0% | $92,000.00 |
How this down payment calculator works
The calculator multiplies the home price by the selected down payment percentage to estimate the upfront amount paid toward the purchase. It then subtracts the down payment from the home price to estimate the mortgage amount before other lender adjustments.
Why the down payment matters
A larger down payment reduces the amount financed. That may lower the monthly mortgage payment, reduce total interest paid over time and improve the loan-to-value ratio. A smaller down payment may help a buyer purchase sooner, but it can increase the amount borrowed and the monthly cost.
Why 20% down is often used as a benchmark
A 20% down payment is commonly used as a planning benchmark because it often reduces the loan-to-value ratio to 80%. Depending on loan type and lender rules, that may help some buyers avoid private mortgage insurance. It is not the only possible down payment level, and many buyers use less than 20%.
Down payment vs closing costs
The down payment is only one part of the cash needed to buy a home. Buyers may also need money for closing costs, prepaid taxes, insurance, inspections, moving costs and an emergency fund after purchase. This calculator includes a simple closing cost estimate so the cash-needed number is more realistic.
Example
On a $400,000 home, 10% down would be $40,000, while 20% down would be $80,000. The 20% option requires $40,000 more cash upfront, but it also reduces the mortgage amount by the same amount before fees and other loan adjustments.
Frequently asked questions
Is 20% down required to buy a home?
No. Some mortgage programs may allow lower down payments, depending on loan type, lender rules, credit profile, location and borrower qualifications. The right down payment depends on both approval rules and your personal budget.
Does a bigger down payment always make sense?
Not always. A bigger down payment can lower the mortgage amount, but using too much cash may leave too little for repairs, emergencies or moving costs. A strong plan balances the down payment with remaining savings.
What is loan-to-value?
Loan-to-value, or LTV, compares the mortgage amount with the home price. For example, 20% down usually means about 80% LTV before other loan costs. Lower LTV can sometimes improve loan terms.
Does this calculator include PMI?
This page does not calculate a monthly PMI payment. It shows the down payment and loan amount so you can see whether the down payment is above or below common thresholds. For full monthly payment estimates, use the mortgage calculator.
Important limitations
This calculator provides simplified educational estimates only. It is not mortgage, lending, tax, legal or financial advice. Actual cash needed depends on lender requirements, loan program, credit profile, appraisal, property taxes, insurance, closing costs and local rules.