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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.

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Down Payment Percentage

20%

RecommendedSave mortgage plan
Down Payment %20.00%
Loan Amount Required$240,000
LTV Ratio80.00%

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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%.

Determine the percentage of your upfront payment.

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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