Down Payment Calculator

The down payment calculator is a simple tool to help you figure out how much you need to save or borrow for major purchases. Whether you're looking for a house down payment calculator or a mortgage calculator with down payment, this tool answers questions like "How do I calculate down payment?", and might be the perfect tool for you to use!

A down payment is the amount of money you pay upfront when making a purchase, for example, a house or a car. It's not the full cost, but the amount you have to put in upfront, and the rest is covered by a loan. For example, if you buy a $200,000 house and put down 10%, that's $20,000 upfront. The loan will cover the other $180,000.

Why does it matter? Banks or other financial institutions often require you to pay a down payment, which shows lenders that you're serious about your purchase, and you're more likely to pay off your debt if you've gathered some money already.

Down payments reduce the amount you need to borrow. A bigger down payment can mean smaller monthly payments or a lower interest rate. On the other hand, a smaller down payment means less upfront but higher costs later. It's a tradeoff. Not all purchases need a down payment, but it's usually needed for big ones, like property or cars.

Here's a short list of purchases that usually require a down payment:

• Vehicles — Cars are one of the most expensive items most people ever buy in their lifetime, so it's natural that lenders often require additional requirements, like a down payment, before you make a purchase. Our tool was designed to help you calculate a down payment on any purchase, so you can easily use it as a car down payment calculator.
• Properties — Houses, land, and commercial properties almost always require a down payment to finance their purchase. Use our tool as a mortgage calculator with a down payment, or a house down payment calculator.
• Appliances and furniture — Expensive appliances sometimes require down payments to finance their purchase.

Mortgages almost always require a down payment from the buyer, because the upfront amount reduces the lender's risk and gives you partial ownership of the property right from the day you sign the agreement.

While the traditional 20% down payment is often mentioned, many buyers today put down far less. In some countries, like the US, programs for first-time homebuyers, for example, sometimes allow for as little as 3%. Of course, smaller down payments often mean added costs, like private mortgage insurance (PMI), which protects the lender if you can't repay, and obviously, you need to borrow more money to finance the purchase.

Calculating down payment is very easy.

1. First, you have to know the purchase price of the item.
2. Then, multiply it by the percentage required for the down payment (or higher, if you want to put down more than the minimum).
3. For example, a 10% down payment on a $20,000 car is $2,000.

Core calculator section

You can use our tool as a house down payment calculator, car down payment calculator, or anything else that you might need to finance, so you don't have to ask yourself "how do I calculate the down payment" anymore! The calculator's design is simple, making your calculations easy and fun. Here's how it works:

• Purchase amount — The total cost of the item you want to buy, like a house or car.
• Loan amount — The amount you need to borrow after subtracting your down payment.
• Down payment — The upfront payment you plan to make.
• Down payment percentage — Down payment calculated as a percentage of the purchase price.

Just enter either purchase amount or loan amount, and the calculator will instantly calculate the down payment.

Down payment savings section

If you're gathering money for the down payment, we created a special section to help you calculate how long it will take you to save enough. Click on the heading to open this section of the calculator.

Here's how it works:

• I already saved — The amount you've already set aside for the down payment.
• …and every month I'm saving — The amount you add to your monthly savings.
• …so I'll save for the down payment in — How long will it take you to reach your down payment goal based on your current savings and monthly contributions?

For example: If your goal is $700, and you've already saved $100, and you save $10 every month, it will take 5 years to save the full amount.