Three ways to calculate a down payment
A down payment question usually takes one of three forms, and each has its own tab. Cash needed starts from a home price and a down payment percentage and tells you how much money to have ready. Price from cash starts from the money you have saved and finds the home price it supports. Down % from cash starts from a price and your cash, and shows what percentage down you can actually afford. All three treat closing costs and a reserve you choose to keep as separate lines, and all three estimate the monthly principal and interest.
This page is about cash, not income. It does not ask what your salary supports. To see a price from income and debts, use the house affordability calculator to check income-based house affordability and then come back here to plan the cash.
Pick the tab by the number you already know. If you have a price in mind, use Cash needed. If you have a savings figure, use Price from cash. If you know both and want to see what percentage down your savings allow, use Down % from cash. All three show the monthly principal and interest at the example rate you enter.
Down payment and closing costs are different
The down payment is the part of the price you pay yourself instead of borrowing. Closing costs are the fees and charges of completing the loan and the sale, and they are usually paid on top of the down payment. This calculator keeps them apart: you can leave closing costs out, enter them as a percentage of the price, or enter a fixed amount, and the percentage is always based on the home price, not the loan.
The sum of the two is a purchase cash estimate. It is not the Cash to Close figure on your lender's paperwork. The Consumer Financial Protection Bureau's sample Loan Estimate builds Estimated Cash to Close from closing costs, any costs financed into the loan, the down payment, a deposit, funds for the borrower, seller credits and adjustments. Use the Loan Estimate you receive for that number.
Closing costs are usually quoted as a percentage of the price or the loan, but the number that matters here is the cash you pay. A percentage of the price is the simplest convention, so that is what the percentage option uses; if your lender quotes a loan-based percentage or itemized amounts, use the fixed option and enter their total. Some cash items change what you bring on the day: an earnest-money deposit paid earlier reduces the cash due at closing but is part of the same budget, and a seller credit lowers the cash you need. This calculator does not subtract them, so a lender figure can legitimately be lower than the estimate here.
Calculate a home price from available cash
Let C be the cash you can use, d the down payment fraction, c closing costs as a fraction of the price and P the price. With percentage costs the cash covers the down payment plus the costs, so C = P × (d + c) and P = C ÷ (d + c). With a fixed cost f, P = (C − f) ÷ d. If you keep a reserve, subtract it from C first.
With 100,000 of cash, 20% down and 3% closing costs, the price is 434,782.61: down payment 86,956.52, closing costs 13,043.48 and a loan of 347,826.09. If closing costs are a fixed 5,000 instead, the price is 475,000, because 95,000 remains for a 20% down payment. With 115,000 of cash the same assumptions support a 500,000 home. This is a cash budget, not proof that you can borrow the rest.
You can check the arithmetic by hand. At 20% down and 3% costs the cash covers 23% of the price, so 100,000 ÷ 0.23 = 434,782.61. The down payment is 86,956.52 and the closing costs are 13,043.48, which add back to 100,000. If your cash grows or shrinks, the price moves in proportion: each additional 10,000 of cash adds about 43,478 of price at these assumptions, so a small change in saving can move the budget by tens of thousands.
Find the cash needed for a home price
For a 500,000 home at 20% down, the down payment is 100,000 and 3% closing costs are 15,000, so the purchase cash estimate is 115,000. The loan is 400,000, and at an example 6% over 30 years the principal and interest is 2,398.20 a month.
A reserve is separate. If you want 10,000 left after buying, the total savings target rises from 115,000 to 125,000, but the price, loan and payment do not change. The reserve enters the calculation once and is never counted as a down payment.
The two cash-based tabs are mirror images. Enter a price and your cash and Down % from cash returns the percentage you can afford, and tells you plainly when there is a shortfall: at 500,000 with 100,000 of cash, 3% costs and no reserve, the down payment is 85,000, or 17%, and a 20% down payment would leave you 15,000 short. It also rejects impossible inputs, such as costs larger than your usable cash or a down payment above the price. For a 400,000 home at 20% down and 3% costs, the down payment is 80,000, the closing costs are 12,000 and the purchase cash estimate is 92,000; with a 10,000 reserve the savings target is 102,000.
Keep a cash reserve when choosing your down payment
A larger down payment lowers the loan and the payment, but it uses cash you can no longer reach. Keeping a reserve lets you cover repairs, a gap in income or moving costs without borrowing again. The calculator does not prescribe a size, because that depends on your circumstances; it simply protects the amount you choose. With 100,000 available and a 10,000 reserve, 20% down and 3% costs support a 391,304.35 home instead of 434,782.61. To think about how much to set aside, plan a cash reserve.
People often ask what the minimum down payment for a house is, and how much they should put down. This tool cannot answer either. It does arithmetic on the percentage you enter: it is not a lender or program minimum, and not a personal recommendation. Requirements vary by loan, lender, property and borrower. As a worked line, 20% of $400,000 is $80,000, before closing costs and reserves; 5% is $20,000. The CFPB notes that the amount depends on the type of loan, and that a lower down payment can mean paying for mortgage insurance (see its Ready to buy a home? page).
The reserve changes the price your cash supports more than people expect. With 100,000 available, 20% down and 3% costs, no reserve supports 434,783, a 10,000 reserve supports 391,304 and a 25,000 reserve supports 326,087. Each 10,000 you keep out of the purchase lowers the price by about 43,478. This is a liquidity choice, not a rule: a larger reserve protects you from surprises, while a smaller one buys more home with the same savings.
How down payment changes principal and interest
Put more down and the loan shrinks, so the monthly principal and interest falls, but the cash you need rises by the same amount. On a 500,000 home with 3% closing costs and a 6% example rate over 30 years:
| Down | Down payment | Purchase cash | Loan | Monthly P&I |
|---|---|---|---|---|
| 5% | 25,000 | 40,000 | 475,000 | 2,847.86 |
| 10% | 50,000 | 65,000 | 450,000 | 2,697.98 |
| 20% | 100,000 | 115,000 | 400,000 | 2,398.20 |
Moving from 5% to 20% down lowers the payment by 449.66 a month and raises the cash needed by 75,000. Payments exclude taxes, insurance, mortgage insurance and HOA dues, so they are not the full cost of owning.
Each extra 5 points of down payment on the 500,000 home lowers the monthly principal and interest by about 149.89, from 2,847.86 at 5% to 2,697.98 at 10%, and costs 25,000 more cash. Over 30 years at the example rate, that 25,000 avoids roughly 28,960 of interest. Whether that return is worth locking up the cash depends on what else you could do with it, which this page does not judge.
Loan types, gifts and assistance
Minimum down payments, gift funds and assistance programs depend on the loan type, the lender and where you buy, and they change. This page does not label any percentage as a program minimum or decide eligibility. If you receive help with a down payment, ask the lender how it must be documented and whether it changes the loan. Enter only the cash you will actually bring, and the calculator will treat it like any other cash available.
Assistance can change the cash you bring but not the price of the home or the loan terms by itself. If a family member gives you money, or a program covers part of your costs, ask the lender whether it must be documented and whether it affects the loan, and then enter only the cash you will actually bring.
What this estimate leaves out
The estimate leaves out seller credits, an earnest-money deposit that is later credited, prepaid taxes and insurance, escrow deposits, moving costs, local transfer rules and the exact fees on your Loan Estimate. It uses an illustrative rate, not a quote, and it never decides whether you qualify. The CFPB suggests also budgeting for closing costs, moving costs, furniture and repairs. Use your own disclosures for the real figures; this page is a planning tool, not personal advice. You can compare it with the other housing tools on the mortgage and real estate calculators page.
Remember the ongoing costs that begin after you buy: property tax, homeowners insurance, mortgage insurance if it applies and association dues. The payment shown here is principal and interest only, so budget the rest separately, and estimate taxes, insurance and full mortgage costs once you have a target price.
FAQ
How do I calculate a down payment?
Multiply the home price by your chosen percentage divided by 100; 500000 at 20% gives 100000.
Does my down payment include closing costs?
No. This tool lists costs separately and adds them to the purchase cash estimate.
How much house can I buy with 100000 cash?
At 20% down, 3% closing costs and no reserve, the cash model gives about 434783. That does not establish income-based affordability.
Do I need 20% down?
Requirements depend on loan, property, lender and borrower. The percentage is an assumption, not an eligibility decision.
Why protect a cash reserve?
It keeps your chosen amount outside the purchase budget; the tool does not prescribe an emergency-fund size.
Is the monthly payment my total housing cost?
No. It is fixed-rate P&I; taxes, insurance, mortgage insurance, HOA and other costs need separate budgeting.