Down Payment Calculator

Formula

Down payment = purchase price × percentage ÷ 100; remaining purchase balance = price − down payment.

Worked example

With Purchase price: 300000 currency units, Down payment percentage: 20 %, down payment is 60,000.00 currency units.

Inputs and calculation

Convert the selected percentage into a decimal and multiply by the agreed purchase price. Subtract that cash portion from the same price to see the amount left to finance before other costs. The displayed relationship is Down payment = purchase price × percentage ÷ 100; remaining purchase balance = price − down payment. Keep the fields' displayed units attached when reproducing this relationship by hand.

Worked numerical example

For example, enter purchase price 300,000 currency units, down payment percentage 20 %. Those inputs produce down payment of 60,000 currency units. The same values also give purchase balance before fees 240,000 currency units.

Holding the other example values fixed, change purchase price from 300,000 to 330,000 currency units. The main output becomes 66,000 currency units. This comparison isolates the effect of that one input.

How to read and use the result

The remaining balance is not a loan approval amount. Closing costs, taxes, financing fees, appraisal gaps and seller credits are not included in this subtraction. Translate a target down-payment percentage into cash and an initial borrowing estimate.

Practical context

Twenty percent of a 300,000 purchase price is 60,000 in cash, leaving 240,000 of price before transaction costs or financing adjustments. A lender may base financing on an appraisal as well as price, and the borrower's cash to close can exceed the down payment after fees and prepayments.

Assumptions and scope

The entered price is the financing basis and the entire down payment is paid from available funds. Specific loan products impose their own minimums and other conditions. Replace the example defaults with measured inputs for your situation and account separately for factors outside these fields.

Checks and common mistakes

Do not commit every available unit of cash to a deposit without considering moving costs and reserves. A smaller loan balance can still have materially different payments at different rates.

Common questions

What should I verify before using the Down Payment Calculator result?

If the appraisal is below the agreed price, the gap may require more cash or renegotiation. Compare several percentages and preserve liquid reserves instead of treating the smallest possible loan as the only objective.

Sources and references

• CFPB: Decide what you can afford