About this Down Payment
Your down payment determines your loan size, monthly payment, and whether you need to pay for mortgage insurance (PMI). Use this tool to toggle between cash amounts and percentages.
Who this calculator is for
- Home buyers setting a savings target before they start shopping for a mortgage.
- Borrowers deciding whether to put down 3%, 5%, 10%, or 20% on a home.
- Anyone trying to understand how cash upfront changes PMI risk and loan size.
When to use it
- Use this calculator when you know the price range you want and need to translate that into a savings target.
- Compare several down payment levels to see how much your financed balance changes.
- Use it with the mortgage and affordability tools to connect upfront cash with monthly payment and lender ratios.
How to use this calculator
- Enter the Home Price.
- Enter your Cash Available.
- See the Down Payment % and LTV Ratio.
Key assumptions
- The model focuses only on purchase price, down payment cash, and resulting loan-to-value ratio.
- Closing costs and lender program minimums are not included in the cash requirement.
- PMI guidance is simplified around common 20% down / 80% LTV thresholds.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
Inputs explained
Home Price
The purchase price of the property.
Cash Available
Money saved specifically for the down payment (not including closing costs).
Understanding your results
A Down Payment % of 20% is the gold standard to avoid PMI. LTV (Loan-to-Value) is the inverse; lenders generally want LTV to be 80% or lower for the best rates.
Example scenarios
20% Goal
On a $400,000 home, you need $80,000 cash to reach 20% down.
Minimum Down
For FHA loans (3.5%), you only need $14,000 on a $400,000 home.
Key Features
- Instant Percentage Calculation
- LTV Output
- Loan Amount Calculation
Things to Keep in Mind
Does not include closing costs (usually an additional 2-5% of purchase price).
Tips & Best Practices
- Don't drain your emergency fund for a down payment. Lenders often require 'reserves' (cash left over after closing).
- Gift funds from family are allowed for down payments on most conventional and FHA loans.
Glossary of Terms
- LTV
- Loan-to-Value Ratio. The loan amount divided by the home value. Higher LTV = Higher Risk.
- PMI
- Private Mortgage Insurance. Required if down payment is less than 20%.