How much should you put down on a house? There isn't one answer that works for every buyer. The right amount depends on the home price, your available savings, the mortgage you qualify for, your monthly budget and how much cash you want to keep after the purchase.
A larger down payment generally means borrowing less. That can reduce your mortgage balance and may lower the principal-and-interest portion of your monthly payment. But putting more money into the house also means keeping less cash available for closing costs, moving expenses, repairs and unexpected situations.
This free Down Payment Calculator helps you see the numbers before making that decision. Enter a home price and down payment percentage to estimate the amount going toward the purchase, the loan amount, loan-to-value ratio and other useful figures.
You can also compare common scenarios such as 5%, 10%, 15% and 20% down to see how changing the percentage affects the amount you would need to finance.
Putting more cash into a home can reduce the amount you borrow, but it can also leave you with less money available after closing. The goal is to find a balance that makes sense for your situation.
This calculator was created by Revisiting Tools as an educational planning tool. It lets you experiment with different home prices, down payment percentages, mortgage rates and loan terms so you can see how the basic numbers change.
The results are estimates, not a mortgage quote, loan approval or personalized financial recommendation. Actual mortgage requirements, interest rates, closing costs, mortgage insurance and other expenses can vary by lender, loan program, property and borrower.
Down Payment Calculator
Enter your estimated home price, down payment percentage and basic mortgage assumptions to estimate the cash going toward the purchase, the amount you may need to finance and your estimated loan-to-value ratio.
This calculator provides estimates for educational purposes. Actual down payment requirements, closing costs, mortgage rates, mortgage insurance and cash needed to purchase a home can vary by lender, loan program, property and borrower.
What Is a Down Payment?
A down payment is the portion of a home's purchase price that you pay upfront instead of borrowing through a mortgage.
For example, if you purchase a $400,000 home and put 20% down, your down payment would be $80,000. The remaining $320,000 would be the starting loan amount before considering other financing details.
The basic calculation is simple:
For a $400,000 home with a 20% down payment:
$400,000 × 20% = $80,000
The calculation itself is easy. The more difficult question is whether that amount of cash makes sense for your overall budget.
Why Does the Down Payment Matter?
Your down payment affects how much money you need to borrow. If you put more money toward the purchase price, you generally start with a smaller loan.
For example, a $400,000 home with 10% down would require approximately $40,000 toward the purchase price and leave about $360,000 to finance.
At 20% down, the numbers become approximately $80,000 down and $320,000 financed.
That difference can affect the principal-and-interest payment, total interest over the life of the mortgage and, depending on the loan, whether mortgage insurance applies.
How Much Down Payment Do I Need?
There isn't one down payment percentage that applies to every home buyer. Requirements can vary depending on the mortgage program, lender, property and borrower.
Some buyers may consider 5%, 10%, 15% or 20% down, while others may choose a different amount. The important thing is to understand what each option does to the loan and the amount of cash you have left.
Instead of assuming that one percentage is right for everyone, use the calculator above to compare several possibilities.
How Much Is 5%, 10% or 20% Down on a Home?
Converting percentages into actual dollar amounts can make the decision much easier to visualize. Here are a few examples for common home prices.
| Home Price | 5% Down | 10% Down | 20% Down |
|---|---|---|---|
| $300,000 | $15,000 | $30,000 | $60,000 |
| $400,000 | $20,000 | $40,000 | $80,000 |
| $500,000 | $25,000 | $50,000 | $100,000 |
| $600,000 | $30,000 | $60,000 | $120,000 |
These are simple percentage calculations. They do not represent universal mortgage requirements, and closing costs and other purchase expenses would be additional.
5% vs. 10% vs. 15% vs. 20% Down
Let's use a $400,000 home as an example. The table below shows how different down payment percentages change the basic amount being financed.
| Down Payment | Cash Toward Price | Estimated Loan | Estimated LTV |
|---|---|---|---|
| 5% | $20,000 | $380,000 | 95% |
| 10% | $40,000 | $360,000 | 90% |
| 15% | $60,000 | $340,000 | 85% |
| 20% | $80,000 | $320,000 | 80% |
The higher the down payment, the smaller the starting loan in this simplified example. The trade-off is that more cash is required upfront.
What Is Loan-to-Value Ratio?
Loan-to-value ratio, commonly called LTV, compares the amount being financed with the applicable property value or purchase price.
In a simple purchase example, putting 20% down means financing about 80% of the purchase price. That produces an estimated starting LTV of 80%.
$320,000 loan ÷ $400,000 home price = 80% LTV
A smaller down payment generally produces a higher starting LTV because more of the purchase price is being financed.
How Does a Down Payment Affect the Mortgage Payment?
Putting more money toward the purchase generally reduces the amount you need to borrow. If the interest rate and loan term stay the same, a smaller loan generally results in a lower principal-and-interest payment.
For example, a $320,000 loan would generally have a lower principal-and-interest payment than a $360,000 loan with the same interest rate and repayment period.
The difference can also add up over time because interest is charged on the outstanding loan balance.
Can a Larger Down Payment Reduce Mortgage Interest?
Generally, yes. The basic reason is that you are borrowing less money.
Imagine two buyers purchasing the same $400,000 home at the same interest rate and loan term. One finances $320,000 while the other finances $360,000.
The second borrower starts with an additional $40,000 of debt. Assuming the other loan terms remain the same, that larger balance generally means more interest over the repayment period.
The calculator lets you change the down payment percentage and see how the estimated loan amount and interest respond.
Do You Need 20% Down to Buy a House?
No. A 20% down payment is not a universal requirement for buying a home.
Different mortgage programs can have different down payment requirements. Your available options can depend on the loan type, lender, property and borrower.
Twenty percent is often discussed because it represents a substantial down payment and can be relevant to mortgage insurance on some conventional loans.
That does not mean every buyer needs to wait until they have exactly 20% saved. The better approach is to understand the costs and trade-offs associated with the specific mortgage you are considering.
How Can a Down Payment Affect PMI?
Private mortgage insurance, commonly called PMI, may apply to certain conventional mortgages when a borrower makes a smaller down payment.
The exact requirements and cost depend on the specific loan and borrower. There isn't one PMI amount that applies to every mortgage.
If mortgage insurance applies to your loan, it can add another monthly expense to your housing budget.
For an actual mortgage, check the lender's terms to understand whether PMI applies and how much it could cost.
Is the Down Payment the Same as the Cash Needed to Buy a House?
No. The down payment is only one part of the money you may need to complete a home purchase.
Depending on the transaction, you may also have closing costs, prepaid expenses, inspection costs, appraisal costs, moving expenses and other charges.
For example, having $40,000 in savings does not necessarily mean that the entire $40,000 can safely be used as the down payment.
Down Payment + Closing Costs + Other Purchase Expenses = Total Cash You May Need at Purchase
How Much Should I Budget for Closing Costs?
Closing costs vary by lender, loan type, property, location and transaction. There isn't one percentage that accurately describes every purchase.
That's why the calculator lets you enter your own estimated closing cost percentage.
For example, if you use a 3% planning assumption for a $400,000 home, the estimated closing costs would be $12,000.
That is only an example. Your actual closing costs could be higher or lower.
Should I Put All My Savings Into the Down Payment?
This is one of the practical questions that can get overlooked when people focus on reaching a particular percentage.
Buying a home can create expenses beyond the closing table. You may need money for moving, furniture, repairs, maintenance or unexpected expenses.
If almost all of your savings goes into the down payment, you may have less flexibility when something unexpected happens.
For that reason, the amount that feels financially comfortable can matter just as much as the percentage used in the mortgage calculation.
Example: Down Payment on a $400,000 Home
Let's compare four simple scenarios for a $400,000 home.
With 5% down, the down payment would be approximately $20,000 and the starting loan would be about $380,000.
With 10% down, you would put approximately $40,000 toward the purchase and finance about $360,000.
With 15% down, the figures would be approximately $60,000 down and $340,000 financed.
With 20% down, the down payment would be approximately $80,000 and the starting loan would be about $320,000.
Moving from 5% to 20% down reduces the starting loan by about $60,000, but it also requires another $60,000 in cash upfront. That's the basic trade-off the calculator is designed to help you visualize.
When Might a Smaller Down Payment Make Sense?
A smaller down payment can allow a buyer to keep more cash available while still purchasing a home.
That additional money could be useful for closing costs, emergencies, moving expenses, repairs or other financial priorities.
The downside is that borrowing more can increase the mortgage payment and total interest. Depending on the loan, mortgage insurance may also be part of the cost.
So a smaller down payment isn't automatically better or worse. It is a trade-off between the cash you keep and the amount you borrow.
When Might a Larger Down Payment Make Sense?
A larger down payment reduces the amount you need to finance.
That can lower the principal-and-interest payment and may reduce the total interest paid over the life of the mortgage.
Depending on the loan, it may also affect mortgage insurance.
The downside is that more of your savings becomes tied up in the property. If you need that money soon after buying, it may not be as easy to access as cash you kept outside the home.
Down Payment Tips for First-Time Home Buyers
If you're buying your first home, it can be tempting to focus on one goal: saving enough for the down payment.
But the purchase usually involves more than that single number. Before choosing a down payment, consider:
- How much cash you will have after closing.
- Your expected monthly mortgage payment.
- Property taxes and homeowners insurance.
- Potential mortgage insurance.
- Closing costs and prepaid expenses.
- Moving expenses.
- Potential repairs and maintenance.
- Your other monthly financial commitments.
Looking at all of these expenses together can give you a clearer idea of whether a particular home and down payment combination fits your budget.
How to Use a Down Payment Calculator
The most useful way to use a calculator is to test several scenarios rather than entering one number and stopping there.
For example, try:
- 5% down.
- 10% down.
- 15% down.
- 20% down.
- A higher or lower home price.
- A different mortgage interest rate.
- A shorter or longer loan term.
You may discover that a larger down payment significantly reduces the loan amount, or you may decide that keeping more cash available is more important.
Tip: Try 5%, 10%, 15% and 20% in the calculator above before deciding which scenario deserves a closer look.
How Does the Down Payment Connect to Home Affordability?
Your down payment and your affordable home price are related, but they answer different questions.
A down payment calculator starts with a home price and shows how much you would put toward the purchase and how much you might need to finance.
A home affordability calculator approaches the question from another direction by considering factors such as income, debts and housing costs.
If you're still trying to determine what home price fits your budget, visit our Home Affordability Calculator .
What Will the Mortgage Payment Be After the Down Payment?
Once you have an idea of the down payment you want to make, the next question is what the mortgage itself may cost each month.
A larger down payment generally means a smaller loan, but the total monthly housing cost can also include property taxes, homeowners insurance, PMI and HOA fees.
Use our Mortgage Payment Calculator to explore estimated mortgage payments and broader housing costs.
What If You're Deciding Whether to Rent or Buy?
The down payment is only one part of the rent-versus-buy decision. Buying a home can involve mortgage interest, property taxes, insurance, maintenance, closing costs and other expenses.
If you're comparing the two choices, try our Rent vs. Buy Calculator to explore the numbers from another angle.
Frequently Asked Questions
Here are some common questions about choosing a down payment and estimating the cash needed for a home purchase.
How much should I put down on a house?
There is no universal amount that works for every buyer. Consider the mortgage payment, loan amount, potential mortgage insurance, closing costs and how much cash you want to keep after buying.
How much is 20% down on a $400,000 house?
Twenty percent of $400,000 is $80,000. A simple purchase-price calculation would leave approximately $320,000 as the starting loan amount before considering other transaction details.
How much is 10% down on a $400,000 house?
Ten percent of $400,000 is $40,000. The remaining purchase price would be approximately $360,000 before considering other financing details.
How much is 5% down on a $400,000 house?
Five percent of $400,000 is $20,000. The remaining purchase price would be approximately $380,000 before considering other financing details.
Do I need 20% down to buy a house?
Not necessarily. Down payment requirements vary by mortgage program, lender, borrower and property. Some buyers may qualify with a smaller down payment.
Does a larger down payment lower the mortgage payment?
Generally, yes. Putting more money toward the purchase usually means borrowing less. With the same interest rate and loan term, that generally reduces the principal-and-interest payment.
Does a larger down payment reduce mortgage interest?
Generally, borrowing less means less interest is charged on the smaller loan balance, assuming the other loan terms remain the same.
Is the down payment the same as closing costs?
No. The down payment is the portion of the purchase price paid upfront. Closing costs are separate expenses associated with completing the purchase.
How much cash do I need to buy a house?
The down payment is only one part of the cash you may need. You may also need money for closing costs, inspections, appraisals, prepaid expenses, moving and other purchase-related costs.
What is loan-to-value ratio?
Loan-to-value ratio, or LTV, compares the loan amount with the applicable property value or purchase price. A larger down payment generally produces a lower starting LTV.
Can I use all my savings for a down payment?
Using nearly all your savings can leave little money available for closing costs, emergencies, repairs and other expenses. Consider how much cash you want to keep after purchasing the home.
Does a smaller down payment increase the mortgage?
Generally, yes. If the home price stays the same, putting less money down means borrowing more through the mortgage.
Does a smaller down payment always mean PMI?
Not necessarily. Mortgage insurance requirements depend on the loan program and other factors. Check the terms of the specific mortgage you are considering.
Is this down payment calculator financial advice?
No. It is an educational calculator designed to help you explore different scenarios. It is not financial, mortgage, tax, legal or investment advice.
Down Payment Calculator: The Bottom Line
A down payment does more than determine how much cash you bring to the closing table. It changes the amount you need to borrow and can affect your mortgage payment, loan-to-value ratio and total borrowing cost.
But putting more money down isn't automatically the right choice. The amount that works best depends on the home you're considering, your available savings, your expected monthly costs and how much cash you want to keep available afterward.
Use the calculator above to compare 5%, 10%, 15% and 20% scenarios. Then change the home price, interest rate and loan term to see how the numbers respond.
Once you have a down payment scenario in mind, use our Mortgage Payment Calculator to explore the estimated monthly mortgage and housing costs.