Down Payment Calculator
This down payment calculator helps homebuyers plan a smart, realistic path to homeownership. Enter a home price and your preferred down payment (percent or amount) to instantly see your loan amount, LTV, estimated principal-and-interest payment, estimated closing costs, and how long it may take to save your target.
Calculator
Results
Note: Results exclude property taxes, homeowners insurance, mortgage insurance premiums, HOA dues, and prepaid/escrow items.
Data Source and Methodology
Authoritative sources consulted:
- Consumer Financial Protection Bureau (CFPB). Owning a Home – Closing Costs (2024). https://www.consumerfinance.gov/owning-a-home/closing-costs/
- U.S. Department of Housing and Urban Development (HUD). FHA Single Family Housing Policy Handbook 4000.1 (latest rev. 2024). https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1
- U.S. Department of Veterans Affairs (VA). Lenders Handbook (VA Pamphlet 26-7, 2023). https://www.benefits.va.gov/WARMS/pam26_7.asp
- Fannie Mae Selling Guide (2024) – LTV/CLTV and minimum down payment standards. https://singlefamily.fanniemae.com/selling-guide
- CFPB. What is mortgage insurance and how does it work? (2024). https://www.consumerfinance.gov/ask-cfpb/what-is-mortgage-insurance-en-133/
All calculations are strictly based on the formulas and data provided by these sources.
The Formula Explained
Down payment (amount), when percent mode is used:
$$ DP_{amt} = P \times \frac{DP_{\%}}{100} $$
Loan amount:
$$ L = P - DP_{amt} $$
Loan-to-Value (LTV):
$$ LTV\% = \frac{L}{P} \times 100 $$
Estimated monthly Principal & Interest (amortized):
$$ M = L \times \frac{i(1+i)^n}{(1+i)^n - 1} \quad \text{where } i = \frac{APR}{12},\ n = 12 \times \text{years} $$
Estimated closing costs:
$$ C = P \times \frac{c}{100} $$
Estimated cash to close (excluding credits/prepaids):
$$ CashToClose = DP_{amt} + C $$
Months to save target down payment (if monthly saving is provided):
$$ months = \left\lceil \max\left(0,\ \frac{DP_{amt} - S_{current}}{S_{monthly}}\right) \right\rceil $$
Where P = home price; DP% = down payment percent; L = loan amount; i = monthly interest; n = total number of payments; c = closing cost percent; S = savings.
Glossary of Variables
Home price (P): Purchase price of the property.
Down payment (DP): Buyer’s upfront contribution, either as percent or amount.
Loan amount (L): Mortgage principal borrowed (P − DP).
LTV%: Loan-to-Value ratio; determines mortgage insurance and pricing.
APR (rate): Annual interest rate used to estimate principal-and-interest.
Term (years): Length of the mortgage, e.g., 30 years.
Closing costs (C): Fees paid at closing, often 2%–5% of price.
Cash to close: Sum you need to bring to close (DP + closing costs, excluding credits and prepaids).
PMI: Private Mortgage Insurance on many conventional loans when LTV > 80%.
Savings (S): Current and monthly amounts used to project time to reach target DP.
How It Works: A Step-by-Step Example
Scenario: Price P = $400,000; DP mode = percent; DP% = 15; Loan type = Conventional; APR = 6.75%; Term = 30 years; Closing costs = 3%.
- Compute down payment amount: DP_amt = 400,000 × 15/100 = $60,000.
- Loan amount: L = 400,000 − 60,000 = $340,000.
- LTV%: 340,000 / 400,000 × 100 = 85% (PMI likely for Conventional).
- Monthly rate: i = 0.0675 / 12 ≈ 0.005625; n = 360.
- Monthly P&I: M = 340,000 × [i(1+i)^n / ((1+i)^n − 1)] ≈ $2,205.57.
- Closing costs: C = 400,000 × 3% = $12,000.
- Cash to close: 60,000 + 12,000 = $72,000 (excluding credits/prepaids).
Frequently Asked Questions (FAQ)
What down payment avoids PMI?
On most conventional loans, an initial LTV at or below 80% (i.e., 20% down) typically avoids PMI at closing. Program and lender rules vary.
Is 3% down possible on a conventional loan?
Some conventional programs allow 3% down for eligible borrowers (e.g., first-time homebuyers) subject to income, credit, and property requirements.
What are typical closing costs?
CFPB notes closing costs often total 2%–5% of the purchase price, excluding any seller credits. This tool uses your selected percentage to estimate.
Does this monthly payment include taxes and insurance?
No. It estimates principal-and-interest only. Property taxes, homeowners insurance, mortgage insurance, and HOA dues are not included.
Can VA or USDA loans be zero down?
Yes, many eligible borrowers can put 0% down with VA or USDA loans. Eligibility and property restrictions apply—consult a licensed lender.
How accurate is the PMI determination?
The tool flags PMI as “likely” for conventional loans with LTV > 80%. Actual PMI costs and rules depend on your credit, program, and lender.