Down Payment Calculator: Cash Up Front and Loan Amount
Work out the cash a home purchase needs up front, and how large a mortgage is left once the down payment is made.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Down payment | Loan amount |
|---|---|---|
| 20% of $420k | 84,000 | 336,000 |
| 10% of $350k | 35,000 | 315,000 |
| 5% of $300k | 15,000 | 285,000 |
| 25% of $600k | 150,000 | 450,000 |
How This Calculator Works
Enter the home price and the down payment percentage you plan to put down. The calculator multiplies the price by the percentage to find the down payment in dollars, then subtracts it from the price to give the loan amount you would need to finance.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
On a $420,000 home with a 20% down payment, the cash up front is $84,000 and the loan amount is $336,000. A smaller down payment lowers the cash needed but raises the loan and the interest paid over its life.
Key Insight
A 20% down payment is a common threshold because it usually removes the need for private mortgage insurance. Below 20%, lenders typically add that monthly cost until enough equity is built.
20% down — the historic benchmark and why it persists
20% down payment is the historic U.S. mortgage standard, dating to the post-WWII era when the FHA program was established. The 20% threshold matters today primarily because it eliminates PMI requirement on conventional loans. For a $500K home: 20% down = $100K; PMI savings of 0.7% × $400K = $2,800/year for ~7 years until LTV drops below 78% = ~$20K saved in PMI.
But 20% down often isn't optimal. Compared to 5% down: the additional $75K spent on down payment generates ~$5K/year in equivalent investment return (at 6.7% historical S&P avg). The opportunity cost ($35K over 7 years) exceeds the PMI savings ($20K). For young / time-rich borrowers with investment options, lower down payment + PMI can be financially superior to 20% down.
20% down's true value is in two non-financial dimensions: (1) STRESS REDUCTION — less debt means less anxiety; (2) OFFER ACCEPTANCE — in competitive markets, sellers prefer offers with larger down payments because they signal lower contingency risk. In hot markets, 20% down offers consistently win against equivalent 5% down offers. These non-financial factors often justify higher down payments even when the financial math doesn't.
First-time buyer assistance — where the money is
U.S. first-time homebuyer assistance programs help with down payment and closing costs. Major federal programs: FHA 3.5% down + Down Payment Assistance Grant programs (state-level partnerships); VA 0% down for veterans; USDA 0% down for rural areas. State and local programs: down payment assistance grants (varies $5K-$50K+); silent second mortgages (forgivable after 5-7 years of residence); MCC (Mortgage Credit Certificate) providing tax credit on mortgage interest.
Notable state programs: California Dream For All (forgivable second mortgage up to 20% down); Texas Bond Programs (3-5% down payment assistance grants); New York SONYMA (down payment assistance for first-time buyers); Florida Homeownership Loan Program. These programs are oversubscribed — most cap annual funding and run out within first few months of fiscal year.
Eligibility typically requires: first-time buyer status (no homeownership in past 3 years); income limits (varies $80-$150K depending on area and program); home purchase price limits; primary residence occupancy; homebuyer education course completion. For prospective buyers, researching state/local programs through HUD-approved housing counselors can identify $5K-$50K+ in potential assistance many borrowers don't know exists.
U.S. down payment by loan type and home price
Reference down payment requirements by loan type for various U.S. home prices.
| Loan type | Min % | On $300K home | On $500K home | On $750K home |
|---|---|---|---|---|
| VA (veterans) | 0% | $0 | $0 | $0 |
| USDA (rural) | 0% | $0 | $0 | $0 |
| FHA | 3.5% | $10,500 | $17,500 | $26,250 |
| Conventional 3% (first-time) | 3% | $9,000 | $15,000 | $22,500 |
| Conventional 5% | 5% | $15,000 | $25,000 | $37,500 |
| Conventional 20% (no PMI) | 20% | $60,000 | $100,000 | $150,000 |
| Jumbo (>conforming limit) | 10-20% | n/a (typically) | n/a (typically) | $75K-$150K |
| Investment property (conventional) | 15-25% | $45K-$75K | $75K-$125K | $112K-$187K |
Median U.S. first-time buyer down payment 2024: ~7% of price (NAR survey). Median repeat buyer down payment: ~17% (more equity from prior home). The 20% benchmark is more aspirational than realistic for most U.S. first-time buyers. The financial choice between low down payment + PMI vs 20% down depends on individual situation; both can be optimal.
Frequently Asked Questions
How much should I put down on a home?
A 20% down payment avoids private mortgage insurance on most loans. Some loan programs allow far less, at the cost of a larger loan and added insurance.
What is private mortgage insurance?
It is an insurance premium lenders require when the down payment is below about 20%. It protects the lender, adds to the monthly cost, and can usually be removed once enough equity builds.
Does the down payment include closing costs?
No. Closing costs — fees, taxes, and prepaid items — are separate from the down payment and typically add a few percent of the price on top.
How does the down payment affect the mortgage?
A larger down payment means a smaller loan, lower monthly payments, and less total interest. It also strengthens the loan application in the lender's eyes.
What loan amount will I need?
The loan amount is the home price minus the down payment. The calculator shows it directly, so you can carry it into a mortgage payment calculator.
When is this calculator unreliable?
As guidance for the 'right' down payment — the optimal amount depends on (a) loan programs you qualify for, (b) whether PMI cost exceeds opportunity cost on alternative cash deployment, (c) market dynamics (large down payments win in competitive markets), and (d) personal cash reserves needed for other purposes. The calculator handles the math; the decision requires comparing multiple scenarios.
References & Authoritative Sources
- Consumer Financial Protection Bureau (CFPB) — Choosing How Much to Put Down on a Home · consulted June 1, 2026 · Federal consumer guidance on down payments
- National Association of Realtors (NAR) — Annual Buyer and Seller Survey · consulted June 1, 2026 · Industry data on U.S. down payment trends
- U.S. Department of Housing and Urban Development (HUD) — FHA Loan Requirements · consulted June 1, 2026 · FHA loan minimums and limits
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for home price are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
Down payment equals purchase price × down payment percentage. The calculator returns the dollar amount. U.S. minimum down payments by loan type: Conventional 3% (first-time buyer programs) or 5% (standard); FHA 3.5%; VA 0% (veterans); USDA 0% (rural); Conventional investment property 15-25%; Jumbo 10-20%. 20% down payment is the historical 'standard' that eliminates PMI requirement; below 20% on conventional loans requires PMI (0.3-1.5% annually). RELIABILITY: Reliable as a direct percentage calculation. Less reliable as a 'what down payment do I need' answer — the right down payment depends on (a) what loan programs you qualify for, (b) whether avoiding PMI is worth the higher down payment, (c) your opportunity cost on alternative uses of the cash, and (d) market dynamics (some markets reward larger down payments with offer acceptance).
Updated