Is it possible to buy a home with 0% down?

Yes, specific government-backed programs like VA loans for veterans and USDA loans for eligible rural areas allow for 0% down payments. However, you will still typically need cash for closing costs.

How do closing costs differ from a down payment?

Your down payment goes directly toward the equity of your home. Closing costs are administrative fees paid to third parties (lenders, title companies, government) to finalize the legal transfer of the property.

Does the calculator include property taxes?

This calculator focuses on the principal and interest of the loan based on your down payment. It does not automatically include local property taxes or homeowners insurance, which vary by zip code.

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Down Payment Calculator

Last updated: February 2026

Plan your home purchase with confidence. This tool helps you estimate the total cash required to close a mortgage by factoring in your desired down payment and projected closing costs.

Quick Instructions:

Available Cash: Find out how much house you can afford based on your total savings.
Home Price: Calculate the specific cash needed for a known property price.
Price & Cash: Determine your remaining down payment after covering mandatory fees.

Financial Disclaimer: These results are estimates for educational planning. Actual rates and fees depend on your credit score, lender specific policies, and local government taxes. Consult a mortgage professional for a formal Loan Estimate.

1. Calculate Max Home Price by Available Cash

Total Savings Available ($) Target Down Payment (%) Estimated Closing Costs (%) Annual Interest Rate (%) Loan Term (Years)

Item	Estimated Amount ($)
Max Home Price
Down Payment
Closing Costs
Total Cash Used
Loan Amount
Monthly P&I Payment

2. Calculate Cash Needed by Home Price

Target Home Price ($) Down Payment (%) Estimated Closing Costs (%) Annual Interest Rate (%) Loan Term (Years)

Item	Estimated Amount ($)
Down Payment
Closing Costs
Total Upfront Cash Needed
Loan Amount
Monthly P&I Payment

3. Balance Price & Cash Limits

Home Price ($) Specific Cash Budget ($) Estimated Closing Costs (%) Annual Interest Rate (%) Loan Term (Years)

Item	Estimated Amount ($)
Down Payment
Closing Costs
Total Cash Used
Loan Amount
Monthly P&I Payment

Why This Down Payment Calculator Exists

Most mortgage tools focus strictly on your monthly payment, often ignoring the hurdle of "Cash to Close." We developed this calculator to provide a holistic view of the home-buying process. By integrating closing cost estimates with your down payment, we ensure that buyers are not caught off guard by the five-figure administrative fees that often accompany a real estate transaction.

When Should You Use This Tool?

Before House Hunting: To determine a realistic price range based on your current liquid savings.
Comparing Loan Types: To see how a 3.5% FHA down payment vs. a 20% Conventional down payment changes your upfront cash needs.
Bidding Strategy: To quickly calculate how increasing your offer price impacts the actual cash you need to bring to the signing table.

How the Calculations Work

This calculator employs three logical pathways to provide flexibility. It first calculates the Closing Costs (a percentage of the loan or home price), then determines the Down Payment. The remaining balance becomes your Principal Loan Amount, which is then amortized over your chosen term (e.g., 30 years) at the specified interest rate to provide a monthly payment estimate.

Real-World Use Cases

The "Saver" Scenario: You have $50,000 in the bank. You need to know if that covers a 10% down payment plus closing costs on a $400,000 home.
The "Fixed Budget" Scenario: You know you can only afford $2,500 a month. You use the tool to see how much of a down payment is required to keep your loan amount within that monthly payment ceiling.
The "Zero Down" Check: Eligible veterans can set the down payment to 0% to see exactly how much cash is still needed for closing costs alone.

Understanding the Limitations

While this tool is highly accurate for principal and interest, it does not include escrow items such as property taxes or homeowners insurance premiums, which lenders often collect upfront. Additionally, Private Mortgage Insurance (PMI) is not automatically calculated for down payments under 20%, as PMI rates vary significantly based on your credit score.

Down Payment FAQ

What is a realistic percentage for closing costs?

In most US states, closing costs range from 2% to 5% of the home's purchase price. This includes lender fees, title insurance, and government recording fees. Our calculator defaults to 2%, but we recommend budgeting closer to 3% for a safer estimate.

Can I use my 401k for a down payment?

Yes, many plans allow for a residential loan or a hardship withdrawal. However, it is vital to check with your plan administrator regarding tax implications and repayment terms before committing those funds to your calculation.

Does the down payment affect my interest rate?

Typically, yes. Lenders see a higher down payment (especially 20% or more) as a sign of lower risk, which can qualify you for the most competitive interest rates available in the market.

What happens to my earnest money?

Earnest money is your "good faith" deposit. On closing day, this money is applied toward your down payment or closing costs. It is not an additional expense beyond what this calculator estimates for your total cash needed.