how-to
How to Calculate Your Down Payment for a House
Quick Summary
To calculate your down payment, multiply the purchase price by the down payment percentage. A $400,000 home with a 10% down payment requires $40,000. Closing costs are separate and typically add several thousand dollars, so budget for both before making an offer.
- Down payment equals purchase price times down payment percentage.
- A 3.5% down payment on a $400,000 home is $14,000, typical for FHA loans.
- Conventional loans with less than 20% down often require private mortgage insurance.
- Closing costs for a $400,000 home with 10% down are estimated at $47,300 to $57,800 total cash.
- Keep an emergency reserve of at least three to six months of housing expenses after closing.
Table of Contents
- Calculating Your Down Payment From Price and Percentage
- How Much Is a 3.5% Down Payment on a House?
- Minimum Down Payment for a First-Time Buyer and How Much You Need for a $400,000 House
- Using a Down Payment and Monthly Payment Calculator to Plan Your Cash to Close
- Frequently Asked Questions
Calculating Your Down Payment From Price and Percentage
Last Updated: November 2, 2026
Your down payment is a percentage of the purchase price, so calculating it takes one multiplication. A $400,000 home with a 10% down payment requires $40,000.
The formula: Purchase price × down payment percentage = down payment amount. Use our calculate down payment tool to run these numbers instantly.
Keep the down payment separate from closing costs, which typically add several thousand dollars. Budget for both before you make an offer.
How Much Is a 3.5% Down Payment on a House?
A 3.5% down payment on a $400,000 home is $14,000. FHA loans, which are backed by the Federal Housing Administration, have their own down payment rules.
For a $300,000 home, 3.5% comes to $10,500. The lower the percentage, the more you borrow and the larger your monthly payment. Private mortgage insurance often applies to conventional loans with less than 20% down; ask your lender for current terms.
Check current FHA requirements directly with [HUD's official FHA loan guidance | hud.gov] before you plan around any specific percentage.
Minimum Down Payment for a First-Time Buyer and How Much You Need for a $400,000 House
First-time buyers often assume they need 20%, but many loan programs accept far less.
For a $400,000 house, the down payment amounts look like this:
| Down Payment | Amount | Typical Loan Type |
|---|---|---|
| 3% | $12,000 | Conventional (some programs) |
| 3.5% | $14,000 | FHA |
| 5% | $20,000 | Conventional |
| 10% | $40,000 | Conventional |
| 20% | $80,000 | Conventional, no PMI |
| Down payment | Loan amount | Approx. principal and interest (30-year fixed) | PMI | Cash left after closing |
|---|---|---|---|---|
| 3% ($12,000) | $388,000 | Highest of the group | Usually required | Smallest reserve |
| 5% ($20,000) | $380,000 | Slightly lower | Usually required | Small reserve |
| 10% ($40,000) | $360,000 | Lower | Usually required | Moderate reserve |
| 20% ($80,000) | $320,000 | Lowest of the group | None | Largest upfront cost |
The exact principal-and-interest figure depends on your interest rate, so run your rate through the free mortgage calculator. A larger down payment lowers the loan amount and monthly principal and interest, and can eliminate PMI at 20%, but it drains cash that could cover repairs, moving costs, or an emergency.
Many first-time buyers weigh the loan terms they qualify for against keeping cash in reserve. There is no single correct percentage, only a trade-off between a lower monthly payment and a larger cash cushion.
Watch out: Putting down less than 20% on a conventional loan often means private mortgage insurance is added to your monthly payment. Ask your lender how and when PMI can be canceled.
Using a Down Payment and Monthly Payment Calculator to Plan Your Cash to Close
Most down payment calculators stop at the down payment figure, but that is only part of the cash you need on closing day. Lenders and title companies typically ask for the down payment plus closing costs and prepaid expenses. Ask your lender for a Loan Estimate to see the figures for your loan.
Assume a $400,000 home with a 10% down payment and a 30-year fixed loan:
| Cash-to-close item | How it is estimated | Example amount |
|---|---|---|
| Down payment | 10% × $400,000 | $40,000 |
| Lender origination and underwriting | 0.5%-1% of loan amount | $1,800-$3,600 |
| Appraisal and credit report | Flat fees | $500-$800 |
| Title search, title insurance, and escrow | Common range in many markets | $2,000-$4,000 |
| Recording and transfer taxes | Varies by state and county | $500-$3,000 |
| Prepaid interest | Daily interest from closing to month-end | $300-$900 |
| Prepaid homeowners insurance | First-year premium collected at closing | $1,200-$2,500 |
| Property tax escrow | Several months of taxes held in reserve | $1,000-$3,000 |
| Estimated cash to close | Down payment plus the items above | $47,300-$57,800 |
Closing costs vary by state, lender, and loan type, so the total cash needed at closing can be considerably higher than the down payment alone.
- Calculate the down payment from price and percentage.
- Ask your lender for a Loan Estimate, which itemizes closing costs and prepaids.
- Add a cushion for moving costs, immediate repairs, and the first month of utilities.
- Compare the total against liquid savings, not retirement accounts or funds you cannot access in a week.
- Keep an emergency reserve of at least three to six months of housing expenses after closing.
Watch out: Buyers who spend every available dollar on the down payment often find at the walkthrough that the home needs a repair or appliance replacement, with no cash left to cover it.
Use our home affordability calculator to see how much house your income supports, and the free mortgage calculator to see how each down payment changes your monthly payment. Before you commit, check your debt-to-income ratio. If you plan to own long term, budget for upkeep with a home maintenance budget calculator.
Frequently Asked Questions
How do I calculate down payment on a house?
Multiply the home's purchase price by the down payment percentage you choose. For a $300,000 home at 10%, the down payment is $30,000 ($300,000 x 0.10). Your loan amount is the purchase price minus your down payment, so a larger down payment reduces the amount you borrow and usually lowers your monthly payment. Your lender can confirm which percentages your loan type accepts.
What is the minimum down payment for a first-time homebuyer?
Down payment requirements vary by loan program and lender. The required amount depends on the loan program, your credit profile, and whether the property is a primary residence. Down payment assistance programs may also help eligible buyers cover part of the cash needed. Check current requirements with a lender or an official housing finance source before you plan your budget.
Should I subtract closing costs before deciding my down payment?
Yes. Closing costs are separate from the down payment, so it helps to estimate them before choosing a down payment amount. Closing costs and prepaid expenses such as insurance and property tax escrow are separate from the down payment itself, so keeping them in your calculation prevents you from draining your emergency savings. Ask your lender for a Loan Estimate to get the figures for your specific loan.
