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Calculator Answers

Down Payment Calculator

Blake Boege
Written by Blake Boege · Founder, Calculator Answers

A down payment calculator is a financial planning tool that helps home or vehicle buyers calculate the cash required for a down payment and estimate savings timelines. Based on the total purchase price and the desired down payment percentage (such as twenty percent for conventional mortgages to avoid private mortgage insurance), the calculator computes the exact dollar amount needed. It also estimates monthly savings goals based on the user's target purchase date, helping buyers plan their budgets.

Pick percent or dollar amount for down payment. Enter home price, closing cost percent, current savings, and monthly contribution. The calculator returns down payment, loan amount, LTV, closing costs, total cash needed, and months to reach the goal.

Quick Answer

Calculate the cash needed for a down payment on a home or car. Enter the purchase price and percentage to see your savings target.

$

e.g. 350000

%

20% avoids PMI on most conventional loans. · e.g. 20

%

Typically 2 to 5% of home price. · e.g. 3

$

What you have saved toward this goal. · e.g. 25000

$

What you can add each month. · e.g. 1000

Down payment

Total cash needed

$80,500.00

Down $70,000.00 (20%) + closing $10,500.00

Home price$350,000.00
Down payment$70,000.00
Down payment %20%
Loan amount$280,000.00
Loan-to-value (LTV)80%
Closing costs$10,500.00
Total cash to close$80,500.00
Current savings$25,000.00
Remaining to save$55,500.00
Months to goal56 months

Closing costs vary by lender, state, and loan type. 20% down avoids PMI on most conventional loans; lower down payments are common via FHA (3.5%), VA (0%), and many conventional programs (3 to 5%). Cross-check with your lender.

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Examples

$350,000 home, 20% down, 3% closing

down $70,000 · closing $10,500 · LTV 80%

$350,000 home, 5% down, 3% closing

down $17,500 · closing $10,500 · LTV 95% (PMI likely)

$500,000 home, 25% down, 2% closing

down $125,000 · closing $10,000 · LTV 75%

How it works

Down payment is either a percent of the home price or a fixed amount. The loan is what is left. Closing costs are a separate percent of home price. Total cash to close = down + closing. The savings plan figures out how long current savings + monthly contribution take to reach the total.

Down payment · price × down %

Loan amount · price − down payment

LTV · loan ÷ price × 100%

Total cash · down + (price × closing %)

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Note. Closing costs vary widely by state, lender, and loan type. Some costs (origination, points) are negotiable. The 2 to 5% range is a common rule of thumb; ask lenders for a Loan Estimate to compare actual figures.

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Mortgage CalculatorEstimate a monthly mortgage payment with principal, interest, taxes, insurance, PMI, and HOA dues. Works for any home loan.

Frequently asked questions

It depends on loan type. Conventional loans often require 3 to 5% minimum, FHA requires 3.5%, VA and USDA can require 0%. 20% down avoids private mortgage insurance (PMI) on most conventional loans and reduces monthly payment. Higher down means smaller loan and less interest paid over time.

LTV is the loan amount divided by the home price, expressed as a percent. A $280,000 loan on a $350,000 home is 80% LTV. Lenders use LTV to set rates and PMI requirements: lower LTV (more down) generally means better terms. 80% LTV is the common PMI threshold.

Fees and pre-paid items at closing: lender origination, title, appraisal, recording, attorney, first-year homeowners insurance, escrow deposits for taxes and insurance, transfer taxes, and so on. Typically 2 to 5% of the home price, but it varies by state, lender, and loan type. Some can be negotiated or rolled into the loan.

Sometimes. More down reduces monthly payment, interest paid, and PMI risk. But it ties up cash that could go to retirement, emergencies, or other goals. Many planners suggest 20% as a sweet spot for cash flow vs liquidity. Higher makes sense if you have ample emergency savings and want lower long-term cost.

No, this tool focuses on the cash needed at closing and the resulting loan amount. For the monthly payment estimate, use the mortgage calculator. For the affordability question (what home price can I afford from my income), use the home affordability calculator.

Lower-down-payment loans are common. FHA loans accept 3.5% with a 580+ credit score. Conventional loans can go as low as 3% for first-time buyers. VA loans (0%) and USDA loans (0%) are available for eligible borrowers. PMI on conventional loans typically falls off automatically at 78% LTV.