Down Payment Calculator | Best Calculator

Advanced Down Payment Calculator

Use the Upfront Cash Available

Please enter a valid positive number
Please enter a value between 0 and 100
Please enter a valid positive number
Please enter a rate between 0 and 100
Please enter a term between 1 and 50 years
Calculation Results
Home Price: $500,000
Down Payment: $100,000
Closing Costs: $15,000
Loan Amount: $400,000
Monthly Payment: $2,564
How It's Calculated:
Maximum Home Price = Upfront Cash Available / (Down Payment % + Closing Cost %) × 100
Down Payment Amount = Maximum Home Price × (Down Payment % / 100)
Loan Amount = Maximum Home Price - Down Payment Amount
Closing Costs = Maximum Home Price × Closing Cost % (or fixed amount)
Monthly Payment = Calculated using standard amortization formula
Example:
With $100,000 cash available and 20% down payment + 3% closing costs (23% total), maximum home price = $100,000 / 0.23 ≈ $435,000. Down payment would be $87,000 (20%) and closing costs $13,000 (3%).
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Use the Home Price

Please enter a valid positive number
Please enter a value between 0 and 100
Please enter a valid positive number
Please enter a rate between 0 and 100
Please enter a term between 1 and 50 years
Calculation Results
Down Payment: $100,000
Closing Costs: $15,000
Down Payment + Closing Costs: $115,000
Loan Amount: $400,000
Monthly Payment: $2,564
How It's Calculated:
Down Payment Amount = Home Price × (Down Payment % / 100)
Loan Amount = Home Price - Down Payment Amount
Closing Costs = Home Price × Closing Cost % (or fixed amount)
Total Upfront Cost = Down Payment Amount + Closing Costs
Monthly Payment = Calculated using standard amortization formula
Example:
For a $500,000 home with 20% down ($100,000), your loan would be $400,000. With 3% closing costs ($15,000), total upfront would be $115,000.
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Use the Home Price and Upfront Cash Available

Please enter a valid positive number
Please enter a valid positive number
Please enter a valid positive number
Please enter a rate between 0 and 100
Please enter a term between 1 and 50 years
Calculation Results
Down Payment: $85,000
Down Payment Percentage: 17.0%
Closing Costs: $15,000
Loan Amount: $415,000
Monthly Payment: $2,660
How It's Calculated:
Down Payment % = (Upfront Cash Available - Closing Costs) / Home Price × 100
Down Payment Amount = Home Price × (Down Payment % / 100)
Loan Amount = Home Price - Down Payment Amount
Closing Costs = Home Price × Closing Cost % (or fixed amount)
Monthly Payment = Calculated using standard amortization formula
Example:
With a $500,000 home and $100,000 cash available, if closing costs are 3% ($15,000), your down payment would be $85,000 (17%) and your loan amount would be $415,000.
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What Is a Down Payment?

A down payment is the upfront cash a buyer contributes when making a large purchase, such as a home or car. For home purchases, it reduces the loan amount you need to borrow. For example, on a $250,000 house, a 3.5% down payment equals $8,750, while a 20% down payment equals $50,000. The rest is typically financed through a mortgage.

Understanding Closing Costs

Besides the down payment, buyers face additional upfront expenses known as closing costs. These may include appraisal fees, loan origination charges, title insurance, and more. On average, closing costs amount to around 3% of the home’s purchase price. This percentage is used as a default in this calculator to help you budget.

Loan Types and Down Payment Requirements

Different mortgage types require different down payment amounts:

Conventional Loans

Standard loans backed by Fannie Mae or Freddie Mac usually require a 20% down payment. However, some lenders may offer options as low as 3%. If your down payment is below 20%, you’ll likely need to pay for Private Mortgage Insurance (PMI), which protects the lender.

FHA Loans

Federal Housing Administration (FHA) loans are geared toward first-time and lower-income buyers. They allow down payments as low as 3.5%, but require an upfront mortgage insurance premium (1.75% of the loan) and ongoing monthly insurance. Use the FHA Loan Calculator to explore your options.

VA and USDA Loans

VA loans, supported by the Department of Veterans Affairs, and USDA loans for eligible rural properties may require no down payment at all. Visit the VA Mortgage Calculator for more info.

Large vs. Small Down Payments

Benefits of a Larger Down Payment

  • May help you qualify for lower interest rates.

  • Reduces the total interest paid over the life of the loan.

  • Eliminates the need for PMI if you put down 20% or more.

Risks of a Larger Down Payment

  • Ties up significant savings that could be used elsewhere.

  • If property values fall, your return on investment may decrease.

Advantages of a Smaller Down Payment

  • Requires less cash upfront, which may be better for your short-term budget.

  • Keeps funds available for other uses like repairs, investments, or savings.

Considerations

Lenders often prefer larger down payments because they reduce risk. Additionally, buyers who default on their loans risk losing the entire down payment, so it also acts as a motivation to stay current on payments.

Where to Get Down Payment Funds

1. Personal Savings

Saving over time is the most common strategy. Keeping funds in savings accounts or CDs earns interest with low risk. See the Savings Calculator and CD Calculator for projections.

2. Piggyback Loans (80-10-10 Loans)

This method splits the mortgage into two loans to avoid PMI or jumbo loan thresholds. One loan covers 80%, another covers 10%, and you contribute 10% as a down payment.

3. Down Payment Assistance Programs

Local governments and nonprofits may offer grants or interest-free loans to first-time or income-eligible buyers. These funds are typically reserved for primary residences and may require repayment if the home is sold.

4. Gifted Funds

FHA loans allow the full down payment to be a gift from a friend or relative, provided a gift letter confirms it doesn’t need to be repaid.

5. IRA Withdrawals

First-time homebuyers can withdraw up to $10,000 from an IRA without penalty. Roth IRA contributions can be withdrawn tax-free, while traditional IRA withdrawals are taxed unless qualified. Couples can withdraw up to $20,000 combined. Funds must be used within 120 days.

6. 401(k) Loans

Borrow up to $50,000 or 50% of your 401(k)’s balance (whichever is less) without taxes or penalties. These loans require repayment with interest within five years and could impact your mortgage eligibility.

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