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Down Payment Calculator

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Down Payment Calculator: $80,000. loan amount $320,000 · closing costs $12,000 · total cash needed $92,000 · PMI is typically not required at 20%+ down

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

Down payment amount = home price × down payment percent ÷ 100. Loan amount = home price − down payment amount. Closing costs = home price × closing cost percent ÷ 100. Total cash needed = down payment amount + closing costs.
  1. Apply the formulaDown payment amount = home price × down payment percent ÷ 100. Loan amount = home price − down payment amount. Closing costs = home price × closing cost percent ÷ 100. Total cash needed = down payment amount + closing costs.$80,000loan amount $320,000 · closing costs $12,000 · total cash needed $92,000 · PMI is typically not required at 20%+ down

Your live breakdown

Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

Home price
400,000 currency
The agreed or expected purchase price of the home.
Down payment
20 %
Down payment as a percentage of the home price.
Closing costs
3 % optional
Optional estimated closing costs as a percentage of home price, for a total-cash-needed check.

Resulting answer

$80,000

loan amount $320,000 · closing costs $12,000 · total cash needed $92,000 · PMI is typically not required at 20%+ down

Answer
$80,000
Live support
loan amount $320,000 · closing costs $12,000 · total cash needed $92,000 · PMI is typically not required at 20%+ down

Assumptions used

What this answer assumes

Best for early home-buying planning: sizing a savings target, comparing down payment scenarios, and estimating total cash needed before a formal loan application.

  • Down payment percentage is applied to the full home price, not the loan amount.
  • Closing costs are an editable estimate; actual costs vary by lender, location and loan type.
  • PMI is flagged as typically required below 20% down for conventional loans; government-backed loans (FHA, VA, USDA) have different mortgage-insurance rules not modelled here.
  • This page does not include earnest money, moving costs, inspection fees or post-closing reserves unless added to the closing-cost percentage.
  • This is a planning estimate, not a lender's official loan estimate or closing disclosure.

Master’s Tip

How to use the result well

Master's Tip: compare the total cash needed, not just the down payment, against what you actually have saved. Closing costs alone are often 2-5% of the home price on top of the down payment.

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What belongs in the saved calculation

Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

Home price
400,000 currency
The agreed or expected purchase price of the home.
Down payment
20 %
Down payment as a percentage of the home price.
Closing costs
3 % optional
Optional estimated closing costs as a percentage of home price, for a total-cash-needed check.

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Explain it like I'm 12

This calculator turns a down payment percentage into real dollars, shows what the remaining loan would be, and adds an estimate for closing costs so you can see the full cash needed at settlement, not just the deposit.

Why people use this calculator

  • Home-buying planning: work out a savings target before shopping for a home.
  • Offer comparison: check how different down payment percentages change loan size and PMI status.
  • Lender conversation prep: arrive with a realistic total-cash-needed figure, not just a down payment guess.
  • Renting vs buying decisions: compare upfront cash needed against current savings and rent-vs-buy calculations.

Common mistakes

  • Budgeting only for the down payment and forgetting closing costs, which can add several percent of the home price.
  • Assuming 20% down is mandatory when many loan programs allow less, with PMI or mortgage insurance instead.
  • Applying the down payment percentage to the loan amount instead of the home price.
  • Not checking whether a specific lender's PMI threshold matches the general 20% convention used here.

Citation sentence

CalculationTime calculates the down payment as home price multiplied by the down payment percentage, derives the resulting loan amount and closing-cost estimate, and flags whether the down payment is likely to require private mortgage insurance.

Formula

Down payment amount = home price × down payment percent ÷ 100. Loan amount = home price − down payment amount. Closing costs = home price × closing cost percent ÷ 100. Total cash needed = down payment amount + closing costs.

Worked example

For a 400,000 home with 20% down: down payment = 400,000 × 20 ÷ 100 = 80,000. Loan amount = 400,000 − 80,000 = 320,000. Closing costs at 3% = 400,000 × 3 ÷ 100 = 12,000. Total cash needed = 80,000 + 12,000 = 92,000, and PMI is typically not required at 20% or more down.

Professional note

Master's Tip: compare the total cash needed, not just the down payment, against what you actually have saved. Closing costs alone are often 2-5% of the home price on top of the down payment.

Regional and unit assumptions

Standard or basis: general conventional-loan down payment arithmetic. Government-backed loan programs, lender-specific PMI rules, and local closing-cost norms all vary and are not modelled here.

Cash needed

What the cash-to-close is made of

Down payment is the larger share, but closing costs are real cash needed on top of it.

$92,000worked example
  • Down payment$80,000
  • Closing costs$12,000

Assumptions and limitations

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

Down payment amount = home price × down payment percent ÷ 100. Loan amount = home price − down payment amount. Closing costs = home price × closing cost percent ÷ 100. Total cash needed = down payment amount + closing costs.

Standard or basis

Standard or basis: general conventional-loan down payment arithmetic. Government-backed loan programs, lender-specific PMI rules, and local closing-cost norms all vary and are not modelled here.

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Master's Tip: compare the total cash needed, not just the down payment, against what you actually have saved. Closing costs alone are often 2-5% of the home price on top of the down payment.

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Questions

How much down payment do I need?

It depends on the loan type. Conventional loans commonly use 20% to avoid PMI, but many buyers use 5-15% and pay PMI instead. FHA and other programs allow much lower down payments.

What is PMI and why does 20% matter?

Private mortgage insurance protects the lender when the down payment is below 20% of the home price. It adds a monthly cost and is usually removable once enough equity is built.

Are closing costs part of the down payment?

No. Closing costs are separate cash needed at settlement, on top of the down payment. This page adds them together only for a total-cash-needed check.

Does a bigger down payment always make sense?

Not always. A bigger down payment lowers the loan and may avoid PMI, but it also ties up cash that could cover an emergency fund, other debt or other goals.

How is loan amount calculated from down payment?

Loan amount is simply home price minus down payment amount. This page does not add financed closing costs or mortgage insurance premiums to the loan by default.

Calculation note

The 20%-down convention became a cultural benchmark in US mortgage lending mainly because it is the threshold most conventional lenders use to waive private mortgage insurance, not because it is a universal requirement.

Down payment size shapes the loan, not just the cash needed

Every dollar of down payment is a dollar the loan does not need to cover, which changes the monthly payment, total interest and whether PMI applies.

Closing costs are easy to forget

Buyers focused on the down payment target often underestimate closing costs, which can add several percent of the home price in cash needed at settlement.

PMI is a rule of thumb, not a law

The 20%-down PMI threshold is a common conventional-loan convention. Government-backed loan programs use different mortgage-insurance rules, so the flag here is a planning signal, not a guarantee.

Sources and further readingConsumer Financial Protection Bureau — Down paymentsHUD — FHA down payment requirements