How much is your down payment?

What the Down Payment Calculator Does

This down payment calculator turns a home price and a down payment percentage into two numbers you actually need: the cash you'll put down up front, and the mortgage loan amount you'll finance for the rest. Enter a price and the percent you plan to contribute, and it does the arithmetic instantly.

It's built for first-time buyers comparing 5% vs. 20% scenarios, current homeowners budgeting an upgrade, and anyone checking how much loan a lender will need to cover. Use it before you get pre-approved so you walk into the conversation knowing your real targets.

How It Works: The Formula

The math is simple and exact. The calculator uses two steps:

Because the down payment and loan always add back up to the full price, you can flip the logic too: if you know a fixed cash amount instead of a percentage, divide it by the price and multiply by 100 to find your percent.

• Down payment = price x (percent / 100)
• Loan amount = price - down payment

Worked Example

Suppose you're buying a home priced at $400,000 and you plan to put down 20%.

Down payment = 400,000 x (20 / 100) = $80,000. Loan amount = 400,000 - 80,000 = $320,000.

Now compare a smaller down payment. At 10% on the same $400,000 home, your down payment drops to $40,000, but your loan rises to $360,000. You keep $40,000 more in cash, yet you borrow $40,000 more and will likely pay private mortgage insurance until you build enough equity.

Why 20% Is a Common Benchmark

On conventional loans, putting down at least 20% typically lets you avoid private mortgage insurance (PMI), an extra monthly cost lenders add to protect themselves when your equity is thin. A larger down payment also shrinks the loan, which lowers both your monthly payment and the total interest you pay over the life of the mortgage.

That said, 20% is a guideline, not a rule. Many loan programs accept far less, so the right number depends on your savings, cash reserves, and how soon you want to buy.

Tips and Common Mistakes

A clean down payment number is only part of the picture. Keep these factors in mind so your budget holds up at closing:

• Budget for closing costs separately. They often run about 2% to 5% of the price and are not included in the down payment.
• Don't drain your savings. Lenders like to see cash reserves left over after you close.
• Watch the PMI threshold. Falling just short of 20% (say, 18%) can still trigger insurance, so a small extra push may pay off.
• Check program minimums. FHA and other programs allow lower down payments but may add their own fees or insurance.
• Gift funds and assistance count. Down payment gifts or grant programs can change your effective percentage, so include them in the price-vs-percent math.

Putting the Numbers to Work

Once you have your loan amount, pair it with a mortgage payment calculator to estimate monthly principal and interest at current rates. Running two or three down payment scenarios side by side, such as 10%, 15%, and 20%, shows the real trade-off between upfront cash and long-term cost.

There's no single correct answer. The best down payment is the one that gets you into the home with a payment you can comfortably afford and a safety cushion still in the bank.