Down Payment Calculator
Use our down payment calculator to determine your home or auto down payment. You can calculate either the down payment amount or percentage, as well as the remaining loan amount.
Input Details
Calculation Results
Asset Price
$250,000
Down Payment Amount
$50,000
(20.00%)
Loan Amount
$200,000
What is a Down Payment?
A down payment is an initial upfront payment made by a buyer when purchasing a home, car, or other large asset. It's typically expressed as a percentage of the total price, with the remainder financed through a loan. A larger down payment means a smaller loan amount, which usually results in lower monthly payments and less interest paid over time.
How to Calculate Down Payment
There are two common approaches to calculating a down payment: based on amount or based on percentage.
The formula for calculating down payment is:
Down Payment Amount = Asset Price × Down Payment Percentage
For example, if a property costs $300,000 and you make a 20% down payment, your down payment amount would be $60,000, and your loan amount would be $240,000.
Down Payment Considerations
- Most mortgage loans require at least a 20% down payment to avoid private mortgage insurance (PMI).
- A larger down payment can reduce your monthly payments and total interest paid, but requires balancing current cash flow needs.
- Some government-backed loan programs (like FHA loans) allow for lower down payments, sometimes as low as 3.5%.
- Beyond the down payment, homebuyers should also consider closing costs, appraisal fees, inspection fees, and other expenses.