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Down Payment Percentage Calculator

Enter the total purchase price and the amount you plan to put down to see if you meet lender requirements.

Determine the percentage of your upfront payment.

Quick Answer

To find the down payment percentage, divide your down payment amount by the total purchase price and multiply by 100. Formula: **(Down Payment / Purchase Price) × 100**. For a $300k home with $60k down, the percentage is 20%.

Down Payment Percentage Calculator

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How It Works

  1. Identify the total **Purchase Price** of the asset (house, car, etc.).
  2. Decide on your **Down Payment** amount in cash.
  3. Divide the Down Payment by the Purchase Price.
  4. Multiply by 100 to get the percentage.

Formula:

DP % = (Down Payment / Purchase Price) × 100

Down Payment vs LTV

There is a direct relationship between Down Payment Percentage and Loan-to-Value (LTV) ratio: **LTV + Down Payment % = 100%** - If you pay **20% down**, your LTV is **80%**. - If you pay **3% down**, your LTV is **97%**. Lenders focus on LTV to assess risk, while buyers focus on Down Payment to budget their cash.

Examples

Example A: 20% Conv. Mortgage

Result: Home: $400,000. Down: $80,000. Ratio: 80,000 / 400,000 = 0.20 (20%). No PMI required.

Example B: FHA Minimum

Result: Home: $250,000. Down: $8,750 (3.5%). Ratio: 8,750 / 250,000 = 0.035.

Example C: Car Purchase

Result: Car: $30,000. Trade-in + Cash: $5,000. Ratio: 5,000 / 30,000 = 16.67%.

Frequently Asked Questions

Why is 20% down important for homes?

Paying 20% down on a home typically allows you to avoid Private Mortgage Insurance (PMI), which can save hundreds of dollars monthly.

What is the minimum down payment?

For FHA loans, it implies 3.5%. For conventional loans, it can be as low as 3%. For USDA/VA loans, it can be 0%.

Does a trade-in count as down payment?

Yes, for cars, the value of your trade-in plus any cash you pay counts toward your total down payment amount.

Is a larger down payment better?

Generally yes, because you borrow less, pay less total interest, and have lower monthly payments. But keep some cash for emergencies.

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