Down Payment Calculator

Introduction

This Down Payment Calculator totals the cash you need at closing by combining down payment dollars with estimated closing costs on a purchase price. Compare five percent versus twenty percent down side by side to see how equity at day one trades against liquid cash left for reserves, moving expenses, and immediate repairs.

Who this calculator is for

Buyers who know their target price but not their wire amount use this page before they drain savings. Gift donors and parents co-signing want a single number that includes settlement fees, not just down payment percent times price. Agents preparing offer strategy also run scenarios when seller credits might offset part of closing costs.

Monthly payment impact of each down payment level belongs in the Mortgage Calculator. Maximum price from income is the House Affordability Calculator.

What it estimates

Down payment equals price times chosen percent or entered dollars. Closing costs apply as a percent of price or a flat estimate covering lender fees, title, appraisal, prepaids, and escrows. Total cash to close sums down payment plus buyer-side closing costs minus seller credits if you enter them.

Earnest money deposits already paid reduce cash due at closing but are not always modeled unless you subtract them manually. FHA UFMIP, VA funding fee financed into the loan reduce cash need versus paid in cash; program-specific calculators handle those fees in detail.

Inputs explained

Run at least two down payment scenarios on the same price.

• Purchase price: Offer or list price you are modeling.
• Down payment option A and B: Percents such as five and twenty, or custom amounts.
• Closing cost estimate: Often two to three percent of price for buyer costs in many markets.
• Seller credits (optional): Concessions capped by program rules that reduce cash due.
• Prepaid and escrow (optional): Months of tax and insurance collected at closing.

How to read the results

Total cash to close is the number to compare against bank balances minus reserves you will keep. Higher down payment lowers the loan and may remove PMI on conventional loans but raises cash required today. The gap between five and twenty percent down on the same price is often tens of thousands plus small closing cost differences on a lower loan amount.

After you pick a scenario, plug the loan amount into the Mortgage Calculator for PITI. FHA three and a half percent down adds MIP layers in the FHA Loan Calculator.

Worked example

Home price $410,000. Five percent down is $20,500. Twenty percent down is $82,000. Closing costs estimated at three percent of price add $12,300 before credits. Cash to close near $32,800 at five percent down versus $94,300 at twenty percent down, a difference of about $61,500 in liquid cash required.

A $8,000 seller credit at five percent down might reduce buyer cash to about $24,800 if the credit is applied to allowable fees. Credits cannot usually exceed actual closing costs plus prepaids per program caps.

Practical use cases

Decide whether to wait three months to save from five to ten percent down. Compare gift funds covering closing only while you supply down payment. Model leaving six months reserves after closing by subtracting reserves from available cash and reading max affordable down payment.

Investors calculating cash-on-cash use down payment plus closing in the denominator on the Rental Property Calculator. VA zero-down buyers still have closing costs; enter zero down with three percent costs here.

Limitations and related tools

Exact closing costs vary by state, lender, and day; three percent is an estimate only. Wire fraud precautions, earnest money timing, and appraisal gap cash are not modeled. Down payment assistance grants and employer programs require separate eligibility checks.

True borrowing cost with points: APR Calculator. VA funding fee cash versus financed: VA Mortgage Calculator. First purchase steps: mortgage basics for first-time buyers.

How It Works

1. Enter purchase price. Type the price you are offering or planning to offer.
2. Set down payment scenarios. Enter two down payment percents or dollar amounts to compare.
3. Estimate closing costs. Apply a closing cost percent or flat fee and add seller credits if known.
4. Compare cash to close. Calculate and read total cash needed for each down payment path against your savings.

Formula and methodology

The Down Payment Calculator uses this identity for the scenario you enter. A bank, payroll system, or tax program may round on a 360-day year or average daily balance, so a statement can differ by a small amount.