How the numbers fit together
The down payment is paid up front; the rest of the price is the loan. The loan-to-value ratio compares the loan with the price. The CFPB’s 20% line is shown so you can see how far your down payment is from it [1].
Down payment = price × percent ÷ 100. Loan = price − down payment. LTV = loan ÷ price × 100
Down payment percent = down payment ÷ price × 100. The percent and the LTV add to 100.
Example: 10% down
A $400,000.00 home with 10% down.
- Down payment: $400,000.00 × 10% = $40,000.00
- Loan: $400,000.00 − $40,000.00 = $360,000.00; LTV: $360,000.00 ÷ $400,000.00 = 90%
- 20% would be $80,000.00, $40,000.00 more. Under 20%, PMI may be required on a conventional loan [1].
Example: a dollar amount
The same home with $60,000.00 down.
- Down payment percent: $60,000.00 ÷ $400,000.00 × 100 = 15%
- Loan: $340,000.00; LTV 85%; $20,000.00 short of 20%
Example: saving for it
$5,000.00 saved, $700.00 a month, 4% a year, aiming for $40,000.00.
- Each month: balance × (1 + 4% ÷ 12) + $700.00
- After 45 months the balance is just under $40,000.00; after 46 it is $40,564.50
- Time to reach it: 46 months (3 years 10 months)
Questions
How much should I put down?
There is no single right amount; it depends on the loan and on what you can afford. The CFPB points to 20% as a useful line: “when you pay 20 percent down, PMI is not required with a conventional loan,” and a 20% down payment could also get a lower interest rate [1]. A smaller down payment is possible, usually with PMI or a higher rate.
What is PMI?
Private mortgage insurance is something you “might be required to buy” on a conventional loan with a down payment of less than 20 percent of the price, and it protects the lender, not you [1]. This calculator only tells you whether your down payment is under 20%; it does not estimate PMI costs, which vary.
What is loan-to-value (LTV)?
The loan amount divided by the home price, as a percent. A 10% down payment means a 90% LTV. The down payment percent and the LTV always add up to 100.
Do program rules set other minimums?
Yes, different loan types have their own minimum down payments, which change. This calculator does not apply any; ask a lender or check the program’s official page for the rule that applies to you.
How is the savings time worked out?
Each month your balance earns interest at the annual rate divided by 12, then your monthly saving is added at the end of the month. The result is the first month the balance reaches the down payment. Leave the rate at 0 if you are not earning interest.
What does the calculator leave out?
Closing costs, taxes, insurance and the monthly payment. To see a payment and the cost of interest, use the biweekly mortgage calculator, which also shows the standard monthly payment.