Down Payment Calculator - Calculator Converter Pro

Down Payment Calculator

Calculate home affordability, cash needed, or down payment percentage

Use the Upfront Cash Available
Use the Home Price
Use Both (Price & Cash)
Calculate Affordable Home Price
$
%
%
years
$434,783
Affordable Home Price
Home Price $434,783
Down Payment $86,957
Closing Costs (3%) $13,043
Loan Amount $347,826
Monthly Payment $2,153
Calculate Cash Needed
$
%
%
years
$115,000
Total Cash Needed
Down Payment $100,000
Closing Costs (3%) $15,000
Down Payment + Closing Costs $115,000
Loan Amount $400,000
Monthly Payment $2,476
Calculate Down Payment Percentage
$
$
%
years
17.0%
Down Payment Percentage
Down Payment $85,000
Down Payment Percentage 17.0%
Closing Costs (3%) $15,000
Loan Amount $415,000
Monthly Payment $2,569

What is a Down Payment?

A down payment is the upfront portion of a payment that is often required to finalize the purchase of items that are typically more expensive, such as a home or a car. When purchasing a home, after a down payment is paid by a home-buyer, any remaining balance will be amortized as a mortgage loan that must be fulfilled by the buyer. In other words, the purchase price of a house should equal the total amount of the mortgage loan and the down payment. Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.

Closing Costs

It is important to remember that a down payment only makes up one upfront payment during a home purchase, even though it is often the most substantial. There are also many other costs that may be involved, such as upfront points of the loan, insurance, lender's title insurance, inspection fee, appraisal fee, and a survey fee. A very rough estimate for the amount needed to cover closing costs is 3% of the purchase price, which is set as the default for the calculator.

Different Loans, Different Down Payment Requirements

Conventional Loans: Normally require 20% down payment. Lower down payments (10%, 5%, or 3%) require Private Mortgage Insurance (PMI).

FHA Loans: Down payment as low as 3.5% with upfront MIP of 1.75% and monthly MIP for life of loan.

VA Loans: No down payment required for eligible veterans, service members, or surviving spouses.

USDA Loans: No down payment required for eligible rural properties.

Large vs. Small Down Payment

Larger Down Payment (20%+): Lower interest rates, no PMI, lower monthly payments, but ties up more cash.

Smaller Down Payment: Less cash needed upfront, but higher monthly payments, PMI required, and more total interest paid.

Where to Get Down Payment Funds

  • Savings: Traditional savings accounts or CDs
  • Piggyback Loan: 80-10-10 loan structure to avoid PMI
  • Down Payment Assistance Programs: Grants from local governments or housing authorities
  • Gift Funds: Allowed for FHA loans with gift letter
  • IRA: Up to $10,000 can be withdrawn penalty-free for first-time home purchase
  • 401(k): Loans up to $50,000 or half the account value
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