Down Payment Calculator
Free online down payment calculator. Enter the purchase price and down payment percentage to find the down payment amount, remaining loan balance, and monthly payment estimate. Works for homes, cars, and any major purchase.
Down Payment Calculator
Enter the purchase price and down payment percentage to calculate the down payment amount, remaining loan balance, and estimated monthly payment.
Typical Down Payments by Purchase Type
Conventional mortgage: 3%–20%+ of the purchase price. Less than 20% triggers PMI.
FHA loan: 3.5% minimum (580+ credit score). Lower scores may require 10%.
VA / USDA loan: 0% down for eligible veterans (VA) and rural-property buyers (USDA).
New car: 10–20% recommended to avoid being immediately underwater on the loan.
Used car: 10–15% is common; some lenders require more due to higher depreciation risk.
Investment property: 15–25% typically required; lenders view rental properties as higher risk.
Frequently Asked Questions
How much down payment do I need to buy a house?
Minimum down payments vary by loan type: conventional loans require as little as 3% (with private mortgage insurance); FHA loans require 3.5% with a credit score of 580+; VA loans (for eligible veterans and service members) require 0%; USDA loans (for rural properties) require 0%. On a $350,000 home, a 3% conventional down payment is $10,500, while 20% is $70,000.
What is the benefit of a 20% down payment?
Putting 20% down eliminates the need for Private Mortgage Insurance (PMI), which typically costs 0.5%–1.5% of the loan amount annually. On a $300,000 loan, PMI savings of 1% equals $3,000 per year. A 20% down payment also reduces the loan amount, lowering your monthly payment and total interest paid. However, it requires more time to save and ties up capital that could be invested elsewhere.
What is PMI and how do I get rid of it?
Private Mortgage Insurance (PMI) protects the lender if you default and is required on conventional loans with less than 20% down. It typically costs 0.2%–2% of the loan amount annually, added to your monthly payment. You can request cancellation when your loan balance reaches 80% of the original purchase price. By law, lenders must automatically cancel PMI when your balance reaches 78% of the original value based on your original amortization schedule.
How does a larger down payment affect my monthly mortgage?
A larger down payment directly reduces the loan amount, lowering your monthly payment. On a $400,000 home at 6.5%: with 5% down ($20,000), you finance $380,000 at roughly $2,403/month (plus PMI ~$190/month). With 20% down ($80,000), you finance $320,000 at roughly $2,023/month with no PMI. The larger down payment saves about $570 per month and eliminates PMI immediately.
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How Much Down Payment Do You Need?
A down payment is the upfront cash you pay when purchasing a home, car, or other major asset. It's expressed as a percentage of the purchase price. For example, a 20% down payment on a $300,000 home is $60,000.
The standard recommendation for homes is 20% down, which avoids Private Mortgage Insurance (PMI) and results in lower monthly payments. However, many loan programs allow 3-10% down for first-time buyers.
For cars, 20% is also recommended to avoid being "underwater" on your loan (owing more than the car is worth). With average depreciation of 20% in the first year, a smaller down payment can leave you with negative equity.
Down Payment vs Loan Amount
Your down payment directly affects your loan amount: Loan = Purchase Price - Down Payment. A larger down payment means:
Lower monthly payments: Less principal to repay means smaller monthly obligations. Less interest paid: Smaller loan = less total interest over the loan term. Better interest rates: Lenders often offer better rates for larger down payments. More equity: You start with ownership stake rather than just debt.
Saving for a Down Payment
Building a down payment takes planning. Common strategies include:
Automate savings: Set up automatic transfers to a dedicated savings account on payday. Cut expenses: Temporarily reduce discretionary spending and redirect to savings. Side income: Use bonuses, tax refunds, or side gig earnings for the down payment fund. Down payment assistance: Many states and cities offer programs for first-time buyers.
Use this calculator to see how different down payment amounts affect your loan and monthly payment, then set a realistic savings goal.
Typical Down Payment Requirements
| Loan Type | Minimum Down | Notes |
|---|---|---|
| Conventional | 3-5% | PMI required under 20% |
| FHA | 3.5% | Mortgage insurance required |
| VA | 0% | For veterans, no PMI |
| USDA | 0% | Rural areas only |
| Jumbo | 10-20% | For loans over conforming limits |
Down Payment Impact Example ($300,000 Home)
| Down Payment | Amount | Loan Amount | Est. Monthly* |
|---|---|---|---|
| 5% | $15,000 | $285,000 | $1,900 |
| 10% | $30,000 | $270,000 | $1,800 |
| 20% | $60,000 | $240,000 | $1,600 |
| 25% | $75,000 | $225,000 | $1,500 |
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