Down Payment Calculator
Enter a home price and a down payment percentage — the cash you need and the loan you'd carry update as you type.
How this calculator works
The math is direct: down payment = price × your percentage, and the loan amount is whatever's left. Closing costs are estimated as a percentage of the purchase price (2–5% is typical in the US); together with the down payment they form your total cash to close. Two facts worth knowing: 3.5% is the FHA minimum down payment, and below 20% down, conventional loans usually add private mortgage insurance (PMI) to your monthly payment — this tool doesn't model PMI, so treat sub-20% results as cash figures only.
Worked example
A $350,000 home with 20% down and 3% closing costs: the down payment is $70,000, closing costs are about $10,500, so total cash needed is $80,500 and the loan is $280,000. Tap the 3.5% FHA preset on the same house and the picture changes sharply: $12,250 down, roughly $22,750 total cash to close, but a larger $337,750 loan — the trade-off between cash today and payment tomorrow, in one glance.
Frequently asked questions
How much down payment do I really need?
It depends on the loan type. FHA loans allow as little as 3.5% down; some conventional programs go to 3% for qualified first-time buyers; VA and USDA loans can be 0% for eligible borrowers. The traditional 20% is not a legal minimum — it's the threshold where conventional loans typically stop requiring private mortgage insurance (PMI).
What are closing costs, exactly?
One-time fees paid at settlement: lender origination and underwriting fees, appraisal, title search and title insurance, recording fees, and prepaid items like property taxes and homeowners insurance. In the US they commonly run about 2–5% of the purchase price, which is why this tool lets you set a percentage and adds them to your cash-to-close estimate.
Does a bigger down payment get me a lower interest rate?
Often slightly — lenders price loans partly by loan-to-value ratio, so more equity can shave the rate a bit. The bigger effects, though, are elsewhere: a larger down payment directly lowers the amount you borrow (and therefore the monthly payment), and at 20% on a conventional loan it typically removes PMI entirely.
Can my down payment come from a gift?
Commonly yes. Most loan programs accept gift funds from family members for some or all of the down payment, but they require documentation — typically a signed gift letter stating the money is not a loan, and sometimes a paper trail of the transfer. Rules vary by program, so confirm the specifics with your lender.