Down Payment Calculator
The down payment on a home, the loan and loan-to-value it leaves, the cash needed at closing and how long it takes to save.
Result
Down payment: $40,000.00
Arithmetic only. Lenders and programmes set their own minimum down payments.
- Loan amount
- $360,000.00
- Loan-to-value
- 90%
- Total cash needed
- $49,000.00
- Still to save
- $34,000.00
- Months to save it
- 23
https://calcgallery.com/finance/down-payment-calculator/
Results are arithmetic estimates based on the values you enter. Rates, fees and terms are set by your lender or provider, and your actual agreement controls what you pay or receive. Confirm important figures with them or with a qualified adviser. Read the full disclaimer
How to use the Down Payment Calculator
- Enter the purchase price and the down payment, as a percentage or an amount.
- Add your expected closing costs and any cash the lender wants you to keep in reserve.
- Enter what you have saved and what you save each month, and read the cash needed and how many months it takes.
How it is worked out
down payment = price × percentage (or the amount you enter)loan = price − down paymentLTV = loan ÷ pricecash needed = down payment + closing costs + reservesstill to save = cash needed − savings (never below zero)months = still to save ÷ monthly saving, rounded upEntering the down payment as a percentage or as an amount gives identical results. The two are the same calculation from different directions.
A timeline, not just a figure
A target is easier to plan for as a date. With 15,000 already saved and 1,500 put aside each month, the example needs 23 more months to cover a 10% down payment and closing costs on a 400,000 home. If you save nothing each month, the page says the gap is never closed rather than showing an endless wait.
Next steps
The mortgage calculator takes the price from here and shows the monthly payment. Interest on your savings would shorten the wait slightly. The savings goal calculator includes it.
With your numbers
- Down payment $40,000.00 leaves a loan of $360,000.00, 90% of the price
- Cash needed = down payment + closing costs + reserves = $49,000.00
- Still to save $34,000.00, 23 months at $1,500.00 a month, rounded up
Quick reference
Arithmetic only. Lenders and programmes set their own minimum down payments.
| Example | Down payment |
|---|---|
| USD 400,000 with 20% down | $80,000.00 |
| USD 400,000 with 10% down | $40,000.00 |
| USD 400,000 with USD 40,000 down | $40,000.00 |
| USD 400,000 with nothing down | $0.00 |
| USD 400,000, 10%, saving USD 1,500 a month | $40,000.00 |
| USD 250,000 with 3.5% down | $8,750.00 |
Common questions about the Down Payment Calculator
- How much down payment do I need?
- That depends on the loan. Different loan programmes and lenders set different minimums, and a larger down payment usually lowers the rate, the payment or the need for mortgage insurance. This page does not assume a figure. It shows what any down payment means for your loan and your savings plan.
- What is loan-to-value?
- The loan as a share of the price. With 10% down on 400,000, you borrow 360,000, a loan-to-value of 90%. Lenders use it to price the loan and to decide whether mortgage insurance is required. The thresholds are theirs, so ask your lender which apply.
- Why is the cash needed more than the down payment?
- Because closing costs are paid at the same time: lender fees, title, recording, prepaid interest and escrow deposits. Some lenders also want reserves, cash left in your account after closing. Your Loan Estimate lists the closing costs, and the closing costs calculator can total them.
- Why is the number of months rounded up?
- Because you are not ready until the whole amount is saved. A shortfall of 34,000 at 1,500 a month is 22.7 months, so you are ready after the 23rd month, not the 22nd.