Calculation details
Planning estimate only, not financial, tax, or legal advice. Verify assumptions and current rules before making decisions.
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What does this calculator estimate?
A down payment calculator works out what you'll pay upfront on a home. Enter the price, down payment (percent or amount), closing costs, and cash on hand to see the total required.
- Down payment = price × down %
- 20% down avoids PMI on most loans
- Cash needed = down + closing costs
Why the down payment matters
The down payment is the upfront equity you bring to a home purchase. A 20% down payment avoids private mortgage insurance (PMI) on conventional loans and lowers the monthly payment, but lower-down options (3–10%) exist with added costs.
Limitations to watch for
The estimate adds closing costs as a percent of price — real closing costs vary by state and lender (2–5% is typical). PMI, taxes, and insurance aren't included. Available cash should also cover inspections, moving, and a cushion.
How to use it in practice
Set a target down payment (20% is the sweet spot for avoiding PMI) and estimate closing costs. Compare the cash required to what you have. If short, evaluate lower-down loans or adjust the price range.
- Enter the home price.
- Enter the down payment % or amount and closing cost %.
- Enter your available cash to see the shortfall.
What a down payment does
The down payment is the upfront cash portion of a purchase: 20 percent of $300,000 is $60,000, and the loan covers the rest. It determines the loan amount, the LTV, PMI, and the monthly payment.
The 20 percent milestone
Twenty percent down avoids private mortgage insurance (PMI) and is the conventional threshold lenders favor. Below it, PMI adds 0.5–1 percent of the loan annually until LTV drops below 80 percent. The calculator shows the PMI impact.
Low-down-payment programs
FHA allows 3.5 percent down, conventional allows 3 percent with good credit, and VA/USDA offer zero-down options. Lower down payments speed homeownership but raise monthly costs and total interest. The calculator compares down payment scenarios.
A worked example
$300,000 home: 20% down = $60,000 loan $240,000, payment (6.5%, 30yr) ≈ $1,517. At 10% down: loan $270,000, payment ≈ $1,706 plus PMI. The calculator shows the monthly difference the down payment buys.
Cash to close
The down payment is part of cash to close, which also includes closing costs (2–5 percent). Total cash: down payment + closing costs + prepaids. The calculator focuses on the down payment; the closing-cost calculator completes the picture.
How this calculator works
Formula
Down payment = home price × down payment % (or the entered amount). Cash needed = down payment + closing costs (closing % × price), compared against available cash.
Worked example
A $300,000 home with 20% down: $60,000 down payment; with 3% closing costs ($9,000), total cash needed is $69,000.
Assumptions to verify
- Closing costs are a flat percent of the price.
- The buyer pays down payment plus closing costs from cash.
- PMI and escrow are evaluated separately.
Frequently asked questions
What is a down payment?
The upfront cash you pay toward a home's purchase price; the mortgage covers the rest.
How much should I put down?
20% avoids PMI and lowers payments on conventional loans; 3–10% works with FHA and other programs but adds costs.
What are closing costs?
Fees for the loan, title, appraisal, and recording — typically 2–5% of the price, on top of the down payment.
What is PMI?
Private mortgage insurance required when your down payment is under 20% — it adds to the monthly payment until you build 20% equity.
How is cash needed calculated?
Down payment plus closing costs. On a $300,000 home at 20% down and 3% closing: $60,000 + $9,000 = $69,000.
Can I buy with 5% down?
Yes — FHA loans allow 3.5%, and some conventional programs allow 3–5%, but you'll pay PMI and possibly a higher rate.
What else should my cash cover?
Inspection fees, moving costs, immediate repairs, and an emergency fund — don't drain everything into the purchase.
How much down payment do I need?
20% avoids PMI; programs allow 3–10% with different costs.
What does 20% down save?
No PMI and a lower loan amount — often hundreds monthly.
Can I buy with 3% down?
Yes — conventional and FHA programs allow it, with PMI and higher payments.
Is the down payment the full cash needed?
No — add closing costs and prepaids for total cash to close.
Cite this tool
BoringToolsKit. “Down Payment Calculator.” boringtoolskit.com/down-payment-calculator/ (reviewed 2026-08-25). Free to reference in articles, syllabi, and answer posts with a link.
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