Down Payment Calculator
With purchase price 450000 usd, down payment 10 percent, saved so far 30000 usd, saving a month 1500 usd and 1 more field, down payment comes to $45,000 — down payment. It is reached in 10 steps, the last of which is 450000 * 10 / 100, and each one is printed on the page with its numbers filled in. The formula is the one published by CFPB, not an approximation fitted to it.
What deposit a purchase needs at a given percentage, what it leaves to borrow, and where the 20% line sits — the point mortgage insurance stops being charged.
Formula and sources checked · How we check
Purchase price 450000, Down payment 10, Saved so far 30000, Saving a month 1500
$45,000
Down payment for the example below. Editing a field recomputes the calculator below; this figure holds the answer the page was loaded with.
It is written into the HTML rather than drawn by a script, so a search engine reading this page without running JavaScript still finds an answer.
- Down payment
450000 * 10 / 100$45,000- Amount to borrow
450000 - 45000$405,000- Loan-to-value
405000 / 450000 * 10090- What 20% would be
450000 * 0.2$90,000- Short of 20% by
max(0, 90000 - 45000)$45,000- Closing costs
450000 * 3 / 100$13,500- Cash needed at completion
45000 + 13500$58,500- Still to save
max(0, 58500 - 30000)$28,500- Months at your saving rate
ceil(28500 / 1500)19- Months to reach 20% plus costs
ceil(max(0, 90000 + 13500 - 30000) / 1500)49
Worked example
10% on a $450,000 house is $45,000, leaving $405,000 to borrow at 90% loan-to-value — which means mortgage insurance, because it is $45,000 short of the 20% line. Closing costs at 3% add $13,500, so completion needs $58,500 in cash. With $30,000 saved and $1,500 a month, that is 19 more months; reaching 20% plus costs would take 49.
How to work it out yourself
- 1.Budget for the deposit and the closing costs separately. The deposit is the part everyone plans for; 2-5% of the price on top of it, due the same day, is what derails a completion.
- 2.Decide deliberately about the 20% line rather than defaulting to it. Below 20% a conventional loan carries private mortgage insurance until the balance falls to 80% — but waiting to save the difference costs rent and, in a rising market, price.
- 3.Know the floors: 3% on some conventional programmes, 3.5% on an FHA loan with a 580 score, and nothing at all on VA and USDA loans for those who qualify. A larger deposit still buys a lower rate.
By percentage down
| Down payment (percent) | Down payment | Down payment | Amount to borrow |
|---|---|---|---|
| 3 | $13,500 | $13,500 | $436,500 |
| 3.5 | $15,750 | $15,750 | $434,250 |
| 5 | $22,500 | $22,500 | $427,500 |
| 10 | $45,000 | $45,000 | $405,000 |
| 15 | $67,500 | $67,500 | $382,500 |
| 20 | $90,000 | $90,000 | $360,000 |
The formula
- Down payment
450000 * 10 / 100 - Amount to borrow
450000 - 45000 - Loan-to-value
405000 / 450000 * 100 - What 20% would be
450000 * 0.2 - Short of 20% by
max(0, 90000 - 45000) - Closing costs
450000 * 3 / 100 - Cash needed at completion
45000 + 13500 - Still to save
max(0, 58500 - 30000) - Months at your saving rate
ceil(28500 / 1500) - Months to reach 20% plus costs
ceil(max(0, 90000 + 13500 - 30000) / 1500)
Source: CFPB — how much should you put down on a house, Fannie Mae — private mortgage insurance and when it can be cancelled, HUD — FHA loan requirements, including the 3.5% minimum
Questions people actually ask
- How much down payment do I need for a house?
- Less than the 20% everyone quotes. Conventional loans start at 3% for a first-time buyer, FHA at 3.5% with a 580 credit score, and VA and USDA loans at nothing for those who qualify. 20% is not a requirement — it is the point at which private mortgage insurance stops being charged.
- Why is 20% the number people talk about?
- Because below it a conventional lender charges private mortgage insurance, typically 0.3% to 1.5% of the loan a year, until the balance reaches 80% of the value. On a $405,000 loan that is $100 to $500 a month buying nothing but the lender’s protection.
- Do closing costs come out of the down payment?
- No — they are on top, and due at the same time. Two to five per cent of the price covers origination, appraisal, title, recording and the first year of escrow. A buyer who saves exactly the deposit arrives short by five figures.
- Is a bigger down payment always better?
- Not automatically. It lowers the payment, avoids mortgage insurance and usually buys a slightly better rate, but it also empties the reserves a new owner needs for a roof or a furnace — and money in the house is money that cannot be spent without borrowing it back.
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