Mortgage Down Payment Calculator

The down payment is the number buyers plan for and closing costs are the number that surprises them. Together they are the cash actually required on completion day, and the gap between that total and what has been saved is the real constraint on a purchase.

This calculator reports both, the resulting loan-to-value, and whether the loan will start above the threshold where mortgage insurance applies.

Result

Cash needed at closing

$92,000

Shortfall

$7,000

Down payment: $80,000
Closing costs: $12,000
Loan amount: $320,000
Loan to value: 80%
Mortgage insurance likely?: No - loan starts at or below 80% LTV

Current savings cover 92.39% of the cash needed at closing.

Closing costs vary widely by state, lender and loan type. Use the percentage your lender quoted rather than the default.

How to use the mortgage down payment calculator

Enter the home price you are targeting.
Enter the down payment as a percentage of the price.
Enter closing costs as a percentage - your lender can give you a figure.
Enter what you have saved to see the shortfall.

What people use this for

Working out how much cash a purchase actually requires.
Deciding between a larger down payment and keeping reserves.
Checking whether a purchase price is reachable with current savings.
Understanding when mortgage insurance will and will not apply.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A 20% down purchase

A $400,000 home with 20% down and 3% closing costs, against $85,000 saved.

Cash needed at closing: $92,000
Shortfall: $7,000
Mortgage insurance likely?: No - loan starts at or below 80% LTV

A 10% down purchase

The same home with 10% down, which puts the loan above 80% LTV.

Cash needed at closing: $52,000
Loan to value: 90%
Mortgage insurance likely?: Yes - loan starts above 80% LTV

Closing costs are not small

Depending on jurisdiction and loan type they typically run between two and five percent of the purchase price, and they include lender fees, title and settlement costs, appraisal, recording fees, transfer taxes and prepaid escrow deposits.

Some are negotiable, some are set by law, and some can be credited by the seller. What none of them are is optional, which is why they belong in the cash calculation from the start.

Keep reserves after closing

Emptying savings to reach a larger down payment removes the buffer at exactly the moment a household acquires a set of costs it has never had: repairs, maintenance, and the things a home inspection did not find.

Lenders think about this too - many require documented reserves after closing. Sizing the down payment so that a meaningful reserve survives it is usually a better decision than minimising the loan.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

The down payment is the percentage applied to the purchase price. Closing costs use the separate percentage you entered.
Loan-to-value is the loan amount divided by the purchase price. PMI is flagged above 80%.
Seller credits, gift funds and assistance programmes are not modelled.
Results are estimates. Real quotes depend on credit, income, property, loan programme and lender pricing at the time of application.
Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator is provided for informational and educational purposes only. Results are estimates and may not reflect actual rates, fees, taxes, or market conditions.

This website is not a lender, a mortgage broker or a financial adviser. It does not originate loans, does not accept applications and does not forward your details to anyone.

Actual loan terms depend on credit history, income, the property, the loan programme and lender pricing at the time of application. Only a lender can tell you what you qualify for.

Frequently asked questions

Is 20% down required?

No. Many loan programmes allow considerably less. Twenty percent is the level at which mortgage insurance is typically avoided, which is why it is treated as a threshold.

Can closing costs be financed?

Sometimes, through lender credits or by rolling them into the loan on certain programmes. Both raise the amount borrowed and therefore the payment.

What is loan-to-value?

The loan divided by the property value. It drives mortgage insurance, and frequently the interest rate offered as well.

Does a bigger down payment always make sense?

Not always. It lowers the payment and avoids PMI, and it also ties up cash. Keeping a reserve after closing is usually worth more than the last few thousand of down payment.

Related calculators

More mortgage tools on MortgageCalculatorTools.

Browse all 4 tools →

Your numbers