CalcArcade.

Down Payment Calculator

Enter the home price and the percentage you plan to put down. You get the down payment, the loan, the monthly payment and how long it takes to save the money.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

The down payment is the price × the percentage, and the loan is the price minus the down payment. The loan-to-value ratio is 100% minus the down payment percentage. The monthly payment is the standard loan payment P × r ÷ (1 − (1 + r)^−n) on the loan, with r the monthly rate and n the number of months.

For example, 20% down on a 400,000 home is 80,000, leaving a loan of 320,000, which costs 2,022.62 a month at 6.5% over 30 years. If you have saved 20,000 and can add 1,500 a month, the remaining 60,000 takes 40 months (3 years 4 months).

Assumptions and limits

  • The monthly payment is principal and interest only. Property tax, home insurance, mortgage insurance and association fees come on top.
  • The time to save counts only your deposits and ignores any interest your savings earn. Putting the money in a savings account would shorten it a little.
  • Many lenders ask for mortgage insurance when the down payment is under 20%. The rules, the cost and the minimum down payment differ by lender and loan type, so check with yours.

Frequently asked questions

How much should I put down on a house?

There is no single answer. Putting 20% down avoids mortgage insurance on many loans and lowers the payment, but some loan programs allow a much smaller down payment, such as 3% to 3.5%. Compare the monthly payment at several percentages.

Does a bigger down payment lower my interest rate?

It can. A larger down payment lowers the loan-to-value ratio, which lenders often reward with a better rate. It always lowers the loan amount, and so the monthly payment.

Should I include closing costs in my savings goal?

Yes. Closing costs are paid on top of the down payment, often a few percent of the price. Add them to the amount you need to save.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Home price = 400000; Down payment (% of the price) = 20; Already saved = 20000; You can save each month = 1500; Mortgage interest rate (%) = 6.5; Loan term (years) = 30.

  • Down payment $80,000.00
  • Loan amount $320,000.00
  • Loan-to-value 80%
  • Monthly payment (principal and interest) $2,022.62
  • Mortgage insurance Usually not required (20% or more down)
  • Still to save $60,000.00
  • Months to save 40 months (3 years 4 months)

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.