Down Payment Calculator
Calculate the down payment amount, loan amount needed, and LTV ratio for any purchase price.
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Enter your values and click Calculate
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.
Recommended Resources
- GuideDown Payment Guide
- Related ToolMortgage Calculator