United States · Mortgage & Housing

Down Payment Calculator USA

Estimate your down payment, mortgage amount, loan-to-value ratio, total cash needed to close, and the money left after closing. Compare your plan with a reserve-safe maximum and a 20% down scenario to see whether avoiding potential conventional PMI is worth using more cash upfront.

Down payment is only one part of the purchase. Closing costs, emergency reserves, moving expenses, repairs, and the first months of homeownership can matter just as much. This planning view keeps those amounts separate so a lower mortgage does not hide an unsafe post-closing cash position.

Primary decision How much can you safely put down? Protect the cash needed for closing and the reserve you want to keep after buying the home.
Last updated June 2026
Method Cash-to-close + reserve
Includes LTV, P&I and PMI planning
Result type Planning estimate

Your purchase plan

Inputs

Start with the cash available for the purchase, then set the down payment and reserve you want to protect.

01
Purchase cash Price and funds available for the transaction
Agreed or expected purchase price before closing costs.
Cash still available now for closing and the post-closing reserve. Exclude any earnest-money deposit already paid.
Planned down payment Edit either field—the other updates automatically
Percentage of the home price paid upfront.
Dollar amount contributed toward the purchase price.
Percentage is currently driving the down-payment pair.
Closing and reserve Protect the cash that should remain after closing
Planning percentage only. Actual lender and third-party costs vary.
Cash you do not want the purchase to consume.
Mortgage assumptions Used for the principal-and-interest estimate
Fixed annual rate used for the planning payment.
The mortgage amortization period used in the estimate.
Advanced assumptions PMI, assistance, applied credits and optional housing costs
Actual mortgage insurance depends on the loan, lender, credit profile and program.
Planning assumption, not a lender quote.
Optional grant, gift or other purchase assistance.
Include an earnest-money deposit already paid and verified seller or lender credits. Do not also count an already-paid deposit in available cash.
Optional costs not covered by the closing-cost percentage.
Optional context for a broader monthly payment view.
Optional annual premium for payment context.
Optional monthly association dues.

Loan-program eligibility, lender pricing, mortgage insurance and approval are not determined from down payment alone. Verify final figures with your lender and Loan Estimate.

Advertisement

HomeEntry™ decision

Smart Results

See whether the plan covers closing, protects your reserve and creates a reasonable mortgage position.

02

Your decision view will appear here

Check more than the down-payment percentage.

Calculate to see total cash to close, cash remaining, reserve safety, LTV, estimated PMI impact and the strongest next move.

Advertisement

A practical five-step check

How to use the down payment calculator

Enter the purchase cash you actually expect to have available. Do not automatically treat every saved dollar as money that can safely go into the down payment.

Enter the home price

Use the expected purchase price before lender fees, title charges and other closing costs.

Enter available buying cash

Include only funds that can realistically be used for the purchase. Keep unrelated emergency savings separate when needed.

Set either down-payment field

Edit the percentage or dollar amount. The calculator keeps the pair synchronized using the field you changed intentionally.

Protect a reserve

Enter the cash you want left after closing for repairs, moving, setup costs and unexpected expenses.

Compare the scenarios

Review the planned, reserve-safe and 20% options instead of judging the purchase from the lowest mortgage balance alone.

Interpret the full cash position

What your down-payment result actually means

The down-payment amount is not the final decision. The important sequence is whether your funds cover the down payment, estimated closing costs and the reserve you want to keep afterward.

Cash to close is the first test

A buyer may have enough for the planned down payment but still face a closing shortfall once lender, title, escrow and other transaction costs are added.

Cash remaining is the safety test

Closing successfully does not make the plan comfortable. A result with almost no cash left can expose the household to immediate repairs, moving costs or normal estimation error.

LTV explains the mortgage position

Loan-to-value compares the initial mortgage with the home price. A lower LTV normally means more starting equity, but it does not prove that the buyer retained enough liquidity.

Principal and interest is not the full housing payment

Property tax, homeowners insurance, HOA dues and mortgage insurance may materially increase the monthly cost. Use the Mortgage Payment Calculator USA to test the fuller payment separately.

Choose the plan, not one isolated number

How to choose a down payment

The strongest option is usually the one that balances upfront cash, monthly cost and post-closing resilience—not necessarily the option with the largest percentage.

Check first

Can the plan cover the closing?

If available funds are below total cash to close, changing the mortgage term or interest rate does not repair the immediate purchase-cash problem.

Check second

Does the selected reserve survive?

If the purchase technically closes but falls below the selected reserve, compare the safe maximum down payment with the original plan.

Check third

What does extra cash actually buy?

Compare the additional upfront amount with the change in P&I, estimated PMI and total interest. Small monthly savings may require a large loss of liquidity.

Check separately

Does the home fit household income?

Cash readiness and monthly affordability are different questions. Use the Mortgage Affordability Calculator USA to test the price and payment against income and debts.

The tradeoff many buyers miss

Down payment versus cash reserve

Every additional dollar placed into the home reduces the mortgage, but it also removes a dollar from the buyer’s immediately available cash.

More down payment

Builds equity and reduces borrowing

  • Smaller starting mortgage
  • Lower monthly principal and interest
  • Lower estimated lifetime interest
  • Potentially lower mortgage-insurance cost
More reserve

Protects liquidity after the purchase

  • More room for moving and immediate repairs
  • Less dependence on credit after closing
  • Better protection against income interruption
  • More tolerance for underestimated ownership costs
The practical warning

Home equity is valuable, but it is not as immediately accessible as cash. Borrowing against the home later may involve approval, fees, interest and time.

Compare the whole 20% decision

PMI versus keeping more cash

A conventional mortgage below 20% down may involve private mortgage insurance, but reaching 20% is not automatically the best cash decision.

01

Measure the additional cash

Calculate exactly how much more must be placed into the purchase to reach 20%, including whether that amount comes from the reserve.

02

Measure the monthly difference

Compare the lower principal-and-interest payment and estimated PMI reduction with the cash sacrificed at closing.

03

Check whether PMI may be temporary

Mortgage-insurance rules depend on the loan. Use the PMI Removal Date Calculator USA to estimate how the loan balance may move toward a potential removal point.

Planning estimate—not a lender quote

Actual PMI pricing, qualification, cancellation and loan terms depend on the mortgage product, lender, property and borrower profile. Verify the final numbers with the lender and Loan Estimate.

Six human purchase decisions

Real buyer scenarios

The same down-payment percentage can be safe for one household and too aggressive for another. The difference is usually the cash position left after closing.

20% but no cushion

$80,000 down on a $400,000 home

The buyer reaches 20%, but estimated closing costs reduce the remaining cash to only $8,000 against a $20,000 reserve target.

Risk The PMI threshold is reached by consuming the safety buffer.
A 15%–17% down payment may create a stronger overall cash position.
Reserve-first approach

10% down preserves six months of cash

A lower down payment creates a larger mortgage and possible PMI, but the household retains enough cash for an income interruption and immediate repairs.

Tradeoff Higher monthly cost in exchange for stronger liquidity.
The lower-down option can be rational when cash resilience is the priority.
Closing-cost surprise

The down payment is funded, but closing is not

A buyer saves the exact down-payment amount and assumes the purchase is ready. Estimated closing costs create a shortfall before the transaction can be completed.

Main failure Total cash to close exceeds available purchase funds.
Saving only for the down payment is not a complete purchase plan.
Close to 20%

A modest extra amount crosses the threshold

A buyer at 18.5% needs a relatively small additional contribution to reach 20%, and the reserve remains comfortably intact.

Opportunity The 20% comparison may be worth serious consideration.
The calculator should show the exact extra cash and monthly difference rather than relying on a rule of thumb.
Price is the real lever

Changing the percentage does not solve the gap

Available cash is too low to cover closing costs and the desired reserve even with a very small down payment.

Main pressure The home price is too high for the entered cash position.
A lower purchase price can repair both the upfront and monthly sides of the decision.
Different loan program

A qualified borrower compares another structure

A VA-eligible or other program-qualified borrower may have a different down-payment and mortgage-insurance comparison from the conventional planning scenario.

Limitation Eligibility cannot be determined from down payment alone.
Compare the actual Loan Estimates rather than assuming one program is automatically cheaper.
Monthly resilience check

Make sure the reserve fits the household budget

A large reserve target may be appropriate when expenses are volatile, while another household may need to rebuild cash quickly after closing. Test the post-purchase plan with the Budget Planner Basic USA .

Advertisement

Avoid false confidence

Common down-payment mistakes

Most purchase-cash errors come from combining separate costs into one number or assuming that a lender’s approval represents a comfortable household plan.

01

Saving only for the down payment

Closing costs can create a shortfall even when the down-payment target has been reached.

02

Assuming closing costs are included

The down payment reduces the price financed. It does not automatically pay lender, title, escrow or other transaction costs.

03

Forcing 20% at any cost

Reaching a familiar threshold can weaken the plan when it consumes the reserve needed immediately after purchase.

04

Looking only at PMI

PMI matters, but the monthly estimate should be compared with the additional cash required and the liquidity lost.

05

Ignoring the full housing payment

P&I alone does not include every recurring housing expense.

06

Assuming minimum down means approval

Loan availability depends on income, debts, credit, property, documentation and program-specific requirements.

07

Using every emergency dollar

A home can create costs before the household has time to rebuild savings.

08

Forgetting immediate ownership costs

Moving, locks, furniture, tools, maintenance and repairs often begin soon after closing.

09

Confusing approval with comfort

A lender may approve a structure that leaves less monthly or cash flexibility than the household prefers.

Transparent calculation method

How the calculation works

HomeEntry™ keeps purchase cash, reserve safety and mortgage calculations separate before combining them into one decision.

Down payment Home price × Down-payment percentage

When the dollar amount is edited, the percentage is derived from the home price instead.

Estimated closing costs Home price × Closing-cost percentage

This is a planning assumption, not a replacement for the lender’s itemized estimate.

Estimated cash still needed to close Down payment + Closing costs + Other upfront costs − Deposits and verified credits

The gross upfront purchase requirement is calculated before deposits and verified credits are subtracted. Assistance increases available funds instead.

Cash remaining Available funds − Cash still needed to close

The result is compared with the reserve target entered by the user.

Safe maximum down payment Funds + Applied credits − Closing costs − Other costs − Reserve

The result is capped between zero and the full home price.

Loan-to-value Mortgage amount ÷ Home price

LTV describes the financed share of the purchase price.

Monthly P&I P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]

The payment uses the mortgage amount, monthly interest rate and number of monthly payments.

Estimated PMI Mortgage amount × Annual PMI rate ÷ 12

Applied only as a conventional planning estimate when LTV is above 80% and the estimate is enabled.

Know the model boundaries

What is included and excluded

A useful planning model must be clear about both the values it calculates and the decisions it cannot make.

Included

  • Down-payment percentage and amount
  • Estimated closing costs
  • Total cash needed to close
  • Cash remaining after closing
  • Reserve surplus or shortfall
  • Safe maximum down payment
  • Mortgage amount and LTV
  • Monthly principal and interest
  • Estimated conventional PMI planning amount
  • Scenario and total-interest comparisons

Not determined

  • Mortgage approval or preapproval
  • Exact lender fees or prepaid escrow amounts
  • Exact PMI quote or cancellation date
  • Credit eligibility or underwriting result
  • FHA, VA, USDA or local-program qualification
  • Future interest-rate changes
  • Home appreciation or investment return
  • Tax consequences of buying the home
  • Complete maintenance or ownership cost
  • Legal or financial advice

Loan-program guardrails

Down-payment and eligibility limitations

Minimum down payments, mortgage insurance, pricing and approval rules vary. A percentage alone cannot establish loan eligibility.

Use the result as a comparison—not a lending decision

Some conventional programs may permit lower down payments for qualified borrowers. FHA, VA, USDA and assistance programs use different requirements. Zero-down or low-down options are not universally available.

Before committing funds, compare the lender’s Loan Estimate, estimated cash to close, mortgage-insurance terms, interest rate, annual percentage rate and recurring housing costs.

Planning assumptions

Assumptions used in the estimate

The calculator uses the values entered at the time of the latest calculation. Results change when any purchase, reserve or mortgage assumption changes.

Fixed-rate payment

Principal and interest are estimated using one fixed annual rate across the entered loan term.

Percentage-based closing costs

Closing costs are estimated from the home price plus any separately entered upfront costs.

Static PMI planning rate

The optional PMI estimate uses the annual percentage entered by the user rather than lender-specific pricing.

No investment return

Cash retained outside the down payment is not assumed to earn a return.

No home appreciation

Future market value changes are excluded from the decision.

Current-dollar comparison

Inflation, future refinancing and changing insurance or tax costs are not projected.

Down-payment questions buyers ask

Frequently asked questions

These answers explain the planning logic without assuming that every borrower qualifies for the same loan structure.