Down Payment Calculator

Calculate the down payment amount, loan amount needed, and LTV ratio for any purchase price.

Purchase Price ($)

Down Payment (%)

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Enter your values and click Calculate

The down payment is one of the most consequential numbers in any major purchase — it determines how much you borrow, your monthly payment, the interest you pay over the loan term, and whether you need costly Private Mortgage Insurance on a home loan. Lenders also use the Loan-to-Value ratio directly to price the interest rate: a lower LTV typically earns a better rate. This calculator works for homes, cars, boats, or any financed asset. Enter the purchase price and your target down payment percentage to instantly see the dollar amount required, the remaining loan balance, and the resulting LTV. Adjust the percentage to find the down payment level that hits your lender's LTV thresholds or fits your savings target.

How It Works

Three sequential formulas produce the results. Down Payment Amount = Purchase Price × (Down Payment % ÷ 100). Loan Amount = Purchase Price − Down Payment Amount. Loan-to-Value Ratio = (Loan Amount ÷ Purchase Price) × 100. For example, a $300,000 home at 20% down: down payment = $300,000 × 0.20 = $60,000; loan amount = $300,000 − $60,000 = $240,000; LTV = ($240,000 ÷ $300,000) × 100 = 80%. The LTV is the direct complement of the down payment percentage — a 20% down payment always produces an 80% LTV. All values are rounded to the nearest cent for the dollar amounts and to two decimal places for the LTV percentage.

Examples

$300,000 home with 20% down

The standard down payment that avoids PMI.

Result: $60,000 down, $240,000 loan, 80% LTV.

$25,000 car with 10% down

A typical car purchase down payment.

Result: $2,500 down, $22,500 loan, 90% LTV.

$450,000 home with 5% down (FHA scenario)

A first-time buyer using a low down payment program.

Result: $22,500 down, $427,500 loan, 95% LTV.

Frequently Asked Questions

What is LTV ratio?

Loan-to-Value (LTV) is the loan amount expressed as a percentage of the purchase price. Lenders use it to assess risk — higher LTV means the borrower has less equity, making the loan riskier. For mortgages, an LTV above 80% typically triggers Private Mortgage Insurance (PMI), which adds to monthly costs.

How much should I put down on a house?

20% is the conventional target to avoid PMI on a conventional mortgage, but many programs accept 3–10% down. A larger down payment reduces your loan balance, lowers monthly payments, reduces total interest paid, and may qualify you for a better interest rate.

Does the LTV affect my mortgage rate?

Yes. Lenders use risk-based pricing where a lower LTV typically earns a lower interest rate. Crossing certain LTV thresholds — particularly 80%, 75%, and 70% — can unlock meaningfully better rates in addition to eliminating PMI.