The formula
How it works
The down payment is the part of a home’s price you pay up front, with the rest covered by a mortgage. Slide the percentage to see the cash you need and the loan you would take on — the two numbers that decide what you can afford.
FAQ
How much should I put down?
20% is the classic target because it usually avoids mortgage insurance and gets better rates, but many loans allow far less. A bigger down payment means a smaller loan and lower monthly payments.
What is private mortgage insurance?
If your down payment is below about 20%, lenders often require insurance that protects them if you default, added to your monthly payment. Reaching 20% equity usually lets you drop it.
Can I buy a home with 0% down?
Some loan programs, such as certain government-backed or veteran loans, allow no down payment at all, though they usually come with eligibility rules and extra fees. Most conventional loans still expect at least a small down payment, often 3% to 5%.
Does the down payment cover closing costs too?
No, this calculator only figures the amount paid toward the home price itself. Closing costs — fees for the loan, title, and inspections — are separate and typically add another 2% to 5% of the price on top.
Can a down payment come from a gift?
Many lenders allow part or all of a down payment to come from a gift, usually from a family member, but they often require a signed letter confirming it does not need to be repaid. Rules on how much can be gifted vary by loan type.
How does the down payment affect my interest rate?
A larger down payment lowers the loan-to-value ratio, which lenders often reward with a lower interest rate since their risk is reduced. Very low down payments can push the rate up or trigger extra insurance costs.
Should I put down more than 20% if I can afford it?
Putting down more reduces the loan and the interest paid over time, but it also ties up cash that could cover moving costs, repairs, or an emergency fund. Many buyers balance avoiding mortgage insurance against keeping some savings in reserve.
About the down payment calculator
This calculator splits a home’s price into the down payment you pay up front and the loan you borrow for the rest. The down payment is one of the biggest hurdles to buying a home, and its size ripples through everything else: a larger deposit shrinks the mortgage, lowers the monthly payment, and can unlock better interest rates. Seeing the cash and loan side by side makes it easy to plan what you need to save.
How to use it
Enter the price of the home and slide to the down payment percentage you are considering. The calculator instantly shows the cash you would pay up front and the loan amount left to finance. For example, on a $300,000 home a 20% down payment is $60,000, leaving a $240,000 mortgage. Slide the percentage up and down to see how saving a little more shrinks the loan, and change the currency to match your housing market.
The formula
The down payment is the price times the percentage, , and the loan is whatever is left, . So a 20% down payment always leaves an 80% loan-to-value mortgage. To work backwards from savings you already have, divide your deposit by the price and multiply by 100 to see what percentage it covers — useful for checking whether you have reached a lender’s minimum.
Where it is used
Home buyers use it to set a savings goal and to judge how much house they can afford, since the down payment and the loan together shape the monthly payment. Lenders and mortgage brokers use the percentage — the loan-to-value ratio — to decide rates and whether mortgage insurance is required. The same up-front-plus-loan split appears in car finance and other big purchases, wherever a deposit reduces the amount borrowed.