Down Payment

Calculate required down payments for a home.

Formula & Methodology

Down payment = purchase price × down payment percentage; loan amount = purchase price − down payment.

Worked Example

A 20% down payment on a $400,000 home is $80,000, leaving a $320,000 loan.

Frequently Asked Questions

How much should I put down?

20% avoids PMI on a conventional loan, but many programs allow 3.5% (FHA) or even 0% (VA/USDA). A larger down payment lowers the payment and interest.

What is PMI?

Private mortgage insurance is required on conventional loans with less than 20% down and adds to the monthly payment until you reach 20% equity.

Does this include closing costs?

No. Closing costs are separate from the down payment and typically run 2–5% of the purchase price.

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