How to use the down payment calculator
- Enter the home price.
- Enter the down payment percent you plan to pay.
- Read the down payment, the loan amount and the LTV.
Why LTV matters
Lenders price your mortgage on the loan-to-value ratio - the loan divided by the price. An LTV above 80% usually triggers private mortgage insurance, so crossing the 20% down mark can lower your monthly cost.
A worked example
A $400,000 home with a 20% down payment needs $80,000 cash. The loan is $320,000 and the LTV is 80%. Drop to a 10% down and the loan rises to $360,000 with a 90% LTV - and likely PMI.
Down payment vs closing costs
The down payment is not the only cash you need. Budget separately for closing costs, which often add 2% to 5% of the price on top of the deposit.