Down Payment Calculator
A down payment does two things at once — it shrinks the loan and it starts you with equity. Both effects are easy to underestimate until you see them side by side.
What changes when the down payment goes up
- The loan — the amount borrowed is simply price minus down payment.
- The payment — it falls in direct proportion to the loan.
- Total interest — it falls too, and by much more than the down payment itself over a long term.
- Equity — you own that share of the home from day one, instead of waiting years of amortization to build it.
How much should you put down?
Twenty percent is the usual benchmark — it's the level at which most lenders stop requiring mortgage insurance, which is a real monthly cost with no equity to show for it. Below that, buying sooner can still be the right call; above it, the extra cash is competing with your emergency fund and your investments. The point of running the numbers is to see what the trade actually costs.
Don't drain the buffer
A larger down payment converts liquid savings into equity you can't easily reach. Keeping several months of expenses in cash is usually worth more than the last few thousand off the loan.
Try it in Hearth
Set your home price, then move the down payment and watch the loan amount, monthly payment, total interest, and equity curve respond live. Compare a 10% and a 20% version and the trade-off stops being abstract.
Try it on your own numbers
Free, no sign-up — move the sliders and watch it update live.
Open the calculatorFrequently asked questions
How much of a down payment do I need?
Many loans allow well under 20%, but 20% is the level at which most lenders drop mortgage insurance. The right number balances a lower payment against keeping enough cash for closing costs, moving, and an emergency fund.
How much does a bigger down payment lower my monthly payment?
Proportionally to the loan: put down 10% more of the price and the loan — and so the principal-and-interest payment — falls by that same 10% of the price. The interest saving over a full term is much larger than the extra cash you put in.
Is it better to make a bigger down payment or keep the cash?
A bigger down payment saves guaranteed interest at your mortgage rate; cash keeps you liquid and able to invest. Most people should fund an emergency buffer first, then put surplus toward the down payment.
Does the down payment count as equity?
Yes — equity is the value of the home minus what you owe, so your down payment is equity from the first day. After that, equity grows with every principal payment (and with any appreciation, which this calculator does not assume).