Down Payment Calculator
Find out exactly how much cash you need to buy a home. Enter the home price, your desired down payment percentage, and estimated closing costs to see a full breakdown of upfront expenses.
Total Cash Needed Breakdown
Down Payment
$80,000.00
(87.0%)
Closing Costs
$12,000.00
(13.0%)
Down Payment
$80,000.00
Closing Costs
$12,000.00
Total Cash Needed
$92,000.00
Loan Amount
$320,000.00
How to use
Enter the home purchase price, your down payment percentage (commonly 3%, 5%, 10%, or 20%), and the estimated closing cost percentage (typically 2-5% of the home price). Click calculate to see your down payment amount, closing costs, total cash needed, and loan amount.
Formula
Down Payment = Home Price × Down Payment %
Closing Costs = Home Price × Closing Cost %
Total Cash Needed = Down Payment + Closing Costs
Loan Amount = Home Price - Down Payment
A 20% down payment typically avoids private mortgage insurance (PMI). Closing costs usually range from 2-5% and include appraisal, inspection, title insurance, and lender fees.
When this calculator helps
Buying a home involves more upfront cash than most people expect. Beyond the down payment itself, closing costs, inspections, and reserves can add tens of thousands of dollars. This calculator helps first-time homebuyers set realistic savings targets, current homeowners planning a move understand their cash needs, and anyone comparing the financial impact of different down payment percentages. Real estate agents and mortgage brokers also use this tool to give clients quick estimates during the home search process, ensuring there are no financial surprises at closing.
Examples
Example 1: First-Time Buyer with FHA Loan
A $300,000 home with 3.5% down (FHA minimum). Down payment is $10,500, closing costs at 3% are $9,000, and total cash needed is $19,500. The loan amount is $289,500. PMI will apply since the down payment is under 20%, adding roughly $140-$240/month to the mortgage payment.
Example 2: Conventional 20% Down Payment
A $450,000 home with 20% down. Down payment is $90,000, closing costs at 2.5% are $11,250, and total cash needed is $101,250. The loan amount is $360,000. No PMI is required, saving $150-$300/month compared to putting less than 20% down.
Example 3: Comparing 5% vs 20% Down
On a $350,000 home: 5% down requires $17,500 plus $10,500 closing costs ($28,000 total), while 20% down requires $70,000 plus $10,500 ($80,500 total). The 20% option needs $52,500 more upfront but eliminates PMI and reduces the monthly mortgage by roughly $400.
Things to watch
- •Do not forget to budget for moving costs, immediate repairs, and furniture, many buyers deplete their savings on the down payment and closing costs alone.
- •Keep 3-6 months of living expenses in reserve after closing. Lenders may actually require proof of reserves for loan approval.
- •First-time buyer programs, VA loans, and USDA loans may allow 0-3% down, research programs available in your state before assuming you need 20%.
- •Sellers sometimes agree to cover part of the closing costs (seller concessions), which can reduce your out-of-pocket cash needed by thousands.
- •Your earnest money deposit (typically 1-3% of the purchase price) is part of your down payment, not an additional cost on top of it.
Sources and methodology
Last reviewed: Checked during calculator QA. We review formulas, default assumptions, and examples against public references when a formal source applies.
Method: This calculator uses the formula explained on this page. We also check example results by hand to catch obvious mistakes.
Found something off? Send a correction with the page URL, inputs, result, and expected result.
Common questions
- How much down payment do I need for a house?
- Conventional loans require 3-20%, FHA loans require 3.5%, and VA/USDA loans may require 0%. A 20% down payment avoids private mortgage insurance (PMI). On a $350,000 home, 20% down is $70,000, while 3.5% is just $12,250.
- Does a larger down payment lower my interest rate?
- Often yes. Lenders see a larger down payment as lower risk, which can qualify you for a slightly better rate. Plus, a larger down payment means a smaller loan, which directly reduces your monthly payment and total interest paid.
- What are closing costs and how much should I expect?
- Closing costs include appraisal fees ($300-$600), title insurance ($500-$1,500), origination fees (0.5-1% of loan), attorney fees, recording fees, and prepaid taxes/insurance. Total closing costs typically run 2-5% of the purchase price. On a $400,000 home, expect $8,000-$20,000 in closing costs on top of your down payment.
- What is PMI and how can I avoid it?
- Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20%. It costs 0.5-1% of your loan annually, on a $300,000 loan, that is $1,500-$3,000/year ($125-$250/month). You can avoid PMI with 20% down, or request its removal once you reach 20% equity through payments and appreciation.
- How long does it take to save for a down payment?
- At a 10% savings rate on a $60,000 household income, you save $6,000/year. For a $350,000 home with 20% down ($70,000), it would take about 11.7 years. At 20% savings rate ($12,000/year), it takes roughly 5.8 years. Many first-time buyers start with 3-5% down to enter the market sooner.