Down Payment Calculator

What this down payment calculator does

This calculator helps you plan a home purchase from three directions. If you know the cash available, it estimates a home price. If you know the home price, it estimates the cash needed. If you know both, it calculates the resulting down payment percentage.

The result includes the down payment, estimated closing costs, loan amount, and monthly principal and interest payment.

How to use this calculator

1. Choose the tab that matches what you know.
2. Enter the upfront cash available, home price, or both.
3. Enter the down payment percentage when the tab asks for it.
4. Enter closing costs as a percentage or dollar amount.
5. Enter the interest rate and loan term.
6. Click Calculate.

The default example has $100,000 of upfront cash, a 20% down payment, 3% closing costs, a 7.108% rate, and a 30-year term. It estimates a home price of $434,783.

Down payment formulas

When cash available is known:

Home price = Upfront cash / (Down payment % + Closing cost %)
Down payment = Home price × Down payment %
Closing costs = Home price × Closing cost %
Loan amount = Home price − Down payment

When the home price is known:

Down payment = Home price × Down payment %
Closing costs = Home price × Closing cost %
Cash needed = Down payment + Closing costs
Loan amount = Home price − Down payment

The monthly payment is calculated with a fixed-rate amortizing loan:

M = L × (r / 12) / (1 − (1 + r / 12)^(−12 × years))

L is the loan amount and r is the annual interest rate.

What the results include

• Home price: the purchase price or affordable price.
• Down payment: the cash applied to the price.
• Down payment percentage: the down payment divided by the price.
• Closing costs: the estimated closing cost amount.
• Cash needed: down payment plus closing costs.
• Loan amount: the mortgage principal.
• Monthly payment: principal and interest only.

Assumptions and limitations

The calculator assumes a fixed-rate, fully amortizing loan and closing costs that are either a percentage of the price or a fixed amount. It does not include property taxes, insurance, HOA dues, mortgage insurance, prepaid items, or seller credits. The monthly payment is principal and interest only.

Frequently asked questions

How much should I put down?

A larger down payment reduces the loan and monthly payment, but it also uses cash that could be kept as an emergency fund. Many buyers aim for 20% to avoid mortgage insurance, but programs allow lower down payments.

Are closing costs included in the down payment?

No. Closing costs are separate from the down payment. This calculator can include them in the cash needed and in the home price calculation.

Why is the home price higher when closing costs are excluded?

Without closing costs, the same cash can go entirely toward the down payment, which supports a higher purchase price at the same down payment percentage.

Does this include PMI?

No. Mortgage insurance is not included, so a down payment below 20% may have a higher actual monthly cost.

Source

References:

• Consumer Financial Protection Bureau — Owning a Home
• Consumer Financial Protection Bureau — What is a down payment?

Disclaimer

This calculator is for informational and planning purposes only. It is not a loan offer or financial advice. Confirm closing costs and loan terms with a lender.