Calculatoo

How Much Down Payment Do I Need Calculator

Enter the price, the percentage you plan to put down, what you have saved and how much you save each month.

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Formula

  • down payment = price × down payment % ÷ 100
  • loan amount = price − down payment
  • months to save = ceil((down payment − already saved) ÷ monthly savings), or 0 if you already have enough

Savings are assumed to earn no interest, and the figures exclude fees and other buying costs.

Worked example

A purchase of 400,000 with 20% down, 20,000 saved and 1,500 saved each month:

  • Down payment: 400,000 × 0.20 = 80,000
  • Loan: 400,000 − 80,000 = 320,000
  • Still to save: 80,000 − 20,000 = 60,000, and 60,000 ÷ 1,500 = 40 months

Frequently asked questions

How is the down payment calculated?

Multiply the price by the down payment percentage. For a 400,000 purchase at 20% that is 400,000 × 0.20 = 80,000, which leaves 320,000 to borrow.

How is the time to save worked out?

Subtract what you have saved from the down payment and divide by your monthly saving, rounding up. With 20,000 saved and 1,500 a month, (80,000 − 20,000) ÷ 1,500 = 40 months. It ignores interest on savings.

Is 20% always required?

No. Many lenders accept less, and some charge extra costs such as mortgage insurance when the down payment is small. A bigger down payment means a smaller loan and less interest.

Does it include closing costs?

No. Fees, taxes and moving costs come on top of the down payment, so plan to save more than the figure shown.

How we calculate

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