Down Payment Needed Calculator
Calculate the down payment a home purchase requires at a chosen percentage, plus the resulting loan amount and loan-to-value ratio.
How to use this tool
- Enter the home price.
- Enter your planned down-payment percentage.
- Read the down payment needed in dollars.
- Check the resulting loan amount.
- Note the LTV — 80% or below avoids PMI on a conventional loan.
How much do you need to put down? Enter the price and a down-payment percentage to see the cash required, the loan amount, and your loan-to-value ratio.
Formula
The down payment and the resulting loan come straight from the price:
Down payment = Price × Down%
Loan amount = Price − Down payment
LTV = (Loan ÷ Price) × 100
How it works
The down payment is the portion of a home's price you pay in cash at closing; the rest is financed. It directly sets your loan-to-value ratio (LTV), which lenders use to price risk. A 20% down payment (80% LTV) is the classic threshold that lets a conventional borrower avoid private mortgage insurance.
This calculator converts a chosen down-payment percentage into a dollar amount, subtracts it from the price to get the loan, and reports the LTV. Lower down payments are possible — 3% on some conventional loans, 3.5% on FHA, and 0% on VA and USDA programs — but they raise the LTV and usually add mortgage insurance.
The figure here covers only the down payment itself, not closing costs, prepaid escrow, or cash reserves, which add several thousand dollars to the cash you need at the table. Putting more down lowers your monthly payment and total interest but ties up liquidity; weigh that against keeping an emergency fund and any higher-return uses of the cash.
Worked example
$400,000 home with 20% down
- Down payment = $400,000 × 20% = $80,000.
- Loan amount = $400,000 − $80,000 = $320,000.
- Loan-to-value = $320,000 ÷ $400,000 × 100 = 80.00%.
- At 80% LTV you avoid private mortgage insurance on a conventional loan.
Down payment needed $80,000.00 | Loan amount $320,000.00 | LTV 80.00%
Down payment and loan on a $350,000 home
| Down % | Down payment | Loan amount |
|---|---|---|
| 3.5% | $12,250 | $337,750 |
| 5% | $17,500 | $332,500 |
| 10% | $35,000 | $315,000 |
| 20% | $70,000 | $280,000 |
Key terms
- Down payment
- The upfront cash a buyer pays toward the purchase price, with the remainder financed by the mortgage.
- Loan-to-value (LTV)
- The loan amount divided by the property value, expressed as a percent; lower LTV means more equity and less lender risk.
- Private mortgage insurance (PMI)
- Insurance a conventional lender requires when the down payment is under 20%, protecting the lender if the borrower defaults.
- Conventional loan
- A mortgage not backed by a government program; conventional loans allow down payments as low as 3% with PMI.
Frequently asked questions
- How much down payment do I need to buy a house?
- It depends on the loan program. Conventional loans can go as low as 3%, FHA loans require 3.5%, and VA and USDA loans can require 0% down. A 20% down payment avoids private mortgage insurance on a conventional loan.
- Why does 20% down matter?
- At 20% down your loan-to-value is 80%, the level at which conventional lenders waive private mortgage insurance. It also lowers your monthly payment and the total interest you pay.
- Does the down payment include closing costs?
- No. The down payment is separate from closing costs. You will need both the down payment and an additional 2%–5% of the loan for closing costs and prepaid escrow.