Enter Home price ($), Down payment (%) and Interest rate (%) and the remaining scenario settings to review down payment required with this tool. The down payment reduces purchase financing, but it is not the entire cash needed at closing.
Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
P = principal, r = periodic interest rate, n = number of payments.The calculation links Home price ($), Down payment (%) and Interest rate (%) to down payment required. The down payment reduces purchase financing, but it is not the entire cash needed at closing. Loan-to-value describes the financed share of the price.
Enter Home price ($), Down payment (%) and Interest rate (%) and the remaining scenario settings to review down payment required with this tool. The down payment reduces purchase financing, but it is not the entire cash needed at closing.
Translate a purchase price and down-payment assumption into cash needed upfront and the remaining loan principal. Compare a fixed dollar payment with a percentage of price.
The down payment reduces purchase financing, but it is not the entire cash needed at closing. Loan-to-value describes the financed share of the price.
Prepare Home price ($), Down payment (%), Interest rate (%), Loan term (years), Property tax rate (%), Insurance ($/year), PMI rate (%) and HOA fees ($/month). Check the price basis, enter the intended cash down payment and keep closing costs outside that amount unless explicitly included.
The down payment reduces purchase financing, but it is not the entire cash needed at closing. Loan-to-value describes the financed share of the price. Closing costs, prepaid taxes, insurance, appraisal differences and program-specific insurance requirements may need separate funds.
Use the full settings in the worked-example table. They produce Down Payment Required: $70000; Loan amount: 280000. Compare the method and units as well as the displayed number.
The displayed relationship is Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments. Check the price basis, enter the intended cash down payment and keep closing costs outside that amount unless explicitly included.
Closing costs, prepaid taxes, insurance, appraisal differences and program-specific insurance requirements may need separate funds. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
Worked down payment calculator example. Set Home price ($) = 350000; Down payment (%) = 20; Interest rate (%) = 6.5; Loan term (years) = 30 years; Property tax rate (%) = 1.2; Insurance ($/year) = 1200; PMI rate (%) = 0.5; HOA fees ($/month) = 0. The corresponding output is Down Payment Required: $70000; Loan amount: 280000. The down payment reduces purchase financing, but it is not the entire cash needed at closing.
Translate a purchase price and down-payment assumption into cash needed upfront and the remaining loan principal. Compare a fixed dollar payment with a percentage of price.
Check the price basis, enter the intended cash down payment and keep closing costs outside that amount unless explicitly included.
| Field | Example value | Entry check |
|---|---|---|
| Home price ($) | 350000 | Use the amount for this scenario in the currency and period shown by the field. |
| Down payment (%) | 20 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Interest rate (%) | 6.5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Loan term (years) | 30 years | Use the period unit in the field label; months and years are not interchangeable. |
| Property tax rate (%) | 1.2 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Insurance ($/year) | 1200 | Check whether this amount is one-time, monthly or annual before entering it. |
| PMI rate (%) | 0.5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| HOA fees ($/month) | 0 | Check whether this amount is one-time, monthly or annual before entering it. |
Relationship used for this example: Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments.
The down payment reduces purchase financing, but it is not the entire cash needed at closing. Loan-to-value describes the financed share of the price.
| Output | Displayed result |
|---|---|
| Down Payment Required | $70000 |
| Loan amount | 280000 |
With these settings, down payment required is $70000. Use the same units and calculation mode when reproducing this example.
The down payment reduces purchase financing, but it is not the entire cash needed at closing. Loan-to-value describes the financed share of the price. Closing costs, prepaid taxes, insurance, appraisal differences and program-specific insurance requirements may need separate funds.
Replace the illustrative home price ($) value (350000) with your own value, then complete the other inputs for the same scenario. Check the price basis, enter the intended cash down payment and keep closing costs outside that amount unless explicitly included.