How to calculate down payment
Down payment = Price × Down % · Loan = Price − Down payment
Worked example. Down payment: $80,000.
Example inputs — Home price: $400,000; Down payment: 20 %; Closing costs: 3 %. Starting values are illustrative.
20% or more down typically avoids PMI on a conventional loan.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
Your down payment is a percentage of the purchase price. The rest is financed. Closing costs are paid separately, often 2–5% of the price.
Using the down payment estimate
A down payment is the part of a home's price you pay rather than finance. This calculator translates a percentage into cash, shows the remaining purchase-price loan, and adds an illustrative closing-cost allowance. It is useful for comparing how much cash different down-payment levels require before moving to a mortgage-payment estimate. The headline is the down payment alone; cash needed at closing is a separate breakdown. Neither figure includes every expense of buying, moving into or maintaining a property.
Step-by-step inputs
- Home price. Enter the full purchase price before subtracting any down payment. Do not use the loan amount or reduce the price by savings you plan to contribute. Starting example: $400,000 .
- Down payment. Choose the share of the price you intend to pay upfront. This is a planning input, not confirmation that a loan program accepts that percentage. Starting example: 20 %.
- Closing costs (Advanced options). In Advanced options, enter a closing-cost allowance as a percentage of the home price. This model does not itemize charges or account for seller credits and deposits already paid. Starting example: 3 %.
Worked example with the starting values
Using the starting inputs, the estimate is Down payment: $80,000 .
The down payment equals price multiplied by the chosen percentage. Subtracting it from the price gives the modeled loan amount. Closing costs are calculated independently from the full price, then added to the down payment for the cash-at-closing estimate. Changing the down-payment percentage does not change this closing-cost allowance when the price and closing percentage remain fixed.
20% or more down typically avoids PMI on a conventional loan.
- Loan amount
- $320,000
- Estimated closing costs
- $12,000
- Cash needed at closing
- $92,000
Compare down payment scenarios
The home price and closing-cost percentage stay fixed. These down-payment scenarios compare upfront contributions, not loan eligibility or advertised offers.
| Down payment | Down payment |
|---|---|
| 5 % | $20,000 |
| 10 % | $40,000 |
| 20 % | $80,000 |
Make a useful comparison
Compare several down-payment percentages at the same purchase price. More upfront cash reduces the purchase-price amount financed, but also leaves less accessible savings. Keep emergency reserves, repairs and moving costs outside the cash you allocate to the transaction.
Use the resulting loan amount in a payment comparison with the actual loan rate and term. This tool does not calculate monthly principal and interest, PMI premiums or taxes and insurance. A smaller down payment can affect both financing cost and available loan terms, so cash at closing alone cannot identify the best option.
Replace the closing percentage with a realistic allowance from an itemized lender estimate. Check whether prepaids, escrow deposits, points and transaction charges are included. Earnest money already paid, seller credits and financed fees can make the remaining transfer at closing different from this simplified total.
Common mistakes to avoid
- Do not subtract the down payment from the price before entering it. The calculator subtracts the modeled contribution itself, so doing it twice understates the loan.
- The mortgage-insurance note describes a conventional-loan planning distinction, not all loan programs. Insurance requirements and removal rules need confirmation from the lender.
- Cash needed at closing is not a complete homebuying budget or a final settlement statement. This estimate omits your specific credits, payments already made and expenses after closing.
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Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
Do I need 20% down?
No. Many loans allow 3–5% down (FHA 3.5%), but under 20% usually adds mortgage insurance.
Why are cash needed at closing and down payment different?
The cash-at-closing breakdown adds the modeled closing-cost allowance to the down payment. Actual settlement amounts can also reflect deposits already paid, credits and other adjustments.
Does this calculate my mortgage payment or PMI cost?
No. It estimates upfront cash and the purchase-price loan amount. Use a mortgage payment calculation with your rate, term, ownership costs and applicable insurance quote for monthly costs.