Down Payment Calculator
Calculate the required down payment dollar amount and remaining loan amount for a target purchase price and down payment percentage.
How It's Calculated
Formula
\text{Down Payment} = \text{Purchase Price} \times \frac{\text{Down Payment \%}}{100}\\ \text{Remaining Loan} = \text{Purchase Price} - \text{Down Payment}A down payment is the upfront cash portion of a purchase price you pay yourself, with the rest typically financed through a loan. This calculator takes a target purchase price and a desired down payment percentage and returns the exact dollar amount you'd need to save, along with the loan amount that remains to be financed: Down Payment = Purchase Price × (Down Payment % / 100), and Remaining Loan = Purchase Price − Down Payment. It also flags a general lending guideline: on conventional mortgages, putting down less than 20% typically triggers a requirement for private mortgage insurance (PMI), an added monthly cost that protects the lender, not the borrower. This is a common industry convention, not a fixed regulation — actual PMI requirements vary by lender, loan type, and loan-to-value ratio, so treat the flag as a planning signal rather than a guarantee.
Worked Examples
Standard case: $400,000 home, 20% down
- Down payment: 400,000 × (20 / 100) = $80,000
- Remaining loan: 400,000 − 80,000 = $320,000
- 20% down meets the conventional-loan PMI-avoidance guideline
Lower down payment: $300,000 home, 10% down
- Down payment: 300,000 × (10 / 100) = $30,000
- Remaining loan: 300,000 − 30,000 = $270,000
- 10% down is below the 20% guideline, so PMI is typically required
Frequently Asked Questions
Why does 20% down matter?
20% is a common threshold lenders use for conventional mortgages: below it, private mortgage insurance (PMI) is typically required as an added monthly cost that protects the lender if you default. At or above 20% down, PMI is typically not required. This is an industry convention, not a universal rule — always confirm the exact threshold with your specific lender and loan program.
Does this calculator compute my monthly mortgage payment?
No. This calculator only computes the down payment dollar amount and the resulting loan amount to be financed. For the actual monthly payment, use a mortgage or loan calculator, which needs the interest rate and loan term in addition to the loan amount computed here.
Can I enter a 0% down payment?
Yes — 0% is a valid input. It means the entire purchase price is financed as a loan, which is how some specialized loan programs (e.g. certain zero-down mortgage products) work, even though it isn't typical for a standard conventional loan.
What if I enter a down payment percentage over 100%?
It isn't calculated — a down payment can't exceed the full purchase price, so anything over 100% is rejected as an invalid input rather than silently capped or misinterpreted.