Down Payment Calculator
Determine how much cash you need to buy a home. Calculate required down payments across common percentages (3%, 5%, 10%, 20%) and evaluate PMI requirements.
Agreed contract purchase price
Percentage paid in cash (20% eliminates PMI)
Liquid funds earmarked for purchase
Total cash required at closing for equity
How to Use This Calculator
- Enter the target purchase price of the property.
- Select your intended down payment percentage (e.g. 20% to avoid PMI).
- Input your current saved funds earmarked for down payment.
- Check your required cash, financed mortgage balance, and savings gap.
Formula & Calculation Methodology
Calculates equity contribution subtracted from total purchase consideration.
Worked Example
$400,000 home purchase with 20% down payment and $60,000 saved
Frequently Asked Questions
Is a 20% down payment mandatory to buy a house?↓
No, conventional loans allow as little as 3% down, FHA loans require 3.5%, and VA or USDA loans allow 0% down for eligible borrowers.
What is Private Mortgage Insurance (PMI)?↓
PMI protects the lender if you default when putting down less than 20%. It typically costs between 0.3% and 1.5% of the loan balance annually.
Do closing costs come out of the down payment?↓
No, closing costs (2% to 5% of purchase price) are separate administrative and title fees due in addition to your down payment.
Can down payment money come from a financial gift?↓
Yes, conventional and FHA guidelines allow down payment gift funds from immediate family members with a signed gift letter.
Related Calculators
Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.