Conventional Loan Down Payment Calculator & Guide

This calculator estimates the down payment on a conventional mortgage from the home price and the percentage you enter. It returns the down payment amount and the remaining loan amount; actual conventional-loan requirements depend on the loan and lender.

Formula

Down payment amount = home price × down payment percentage ÷ 100. Mortgage amount before other costs = home price − down payment amount.

• Home price is the agreed purchase price, in dollars.
• Down payment percentage is the share of the price paid upfront, entered as a percent from 0 to 100.
• Down payment amount and mortgage amount are dollar estimates, rounded to the nearest cent.

The calculator treats the percentage as a share of the purchase price. It does not determine whether a lender will accept a particular amount or whether a particular property or borrower qualifies.

Worked Example

Using the calculator’s default values—home price $300,000 and down payment percentage 5%:

1. Convert the percentage to a decimal: 5 ÷ 100 = 0.05.
2. Calculate the down payment: $300,000 × 0.05 = $15,000.00.
3. Subtract it from the price: $300,000 − $15,000 = $285,000.00 mortgage amount before other costs.

Assumptions

• The entered price is the purchase price used for the calculation.
• The percentage applies directly to that price.
• This is a one-time arithmetic estimate; it does not model loan interest, payment timing, or compounding.
• Closing costs, lender fees, property taxes, insurance, private mortgage insurance (PMI), escrow, and other funds due at closing are not included.

What Percentage Is Required for a Conventional Loan?

There is no single down payment percentage that applies to every conventional mortgage. Some conventional loans may allow down payments below 20%, while other loan types, lender requirements, borrower circumstances, property details, or transaction terms can call for more. A lender or loan program’s current eligibility and pricing terms—not this calculator—determine what applies to a specific application.

Conventional generally describes a mortgage that is not insured or guaranteed by a federal government program. The label alone does not set one universal minimum down payment. Also, “conventional” is not the same as “20% down”: 20% is a common point of reference, not a blanket requirement for all conventional loans.

How the Down Payment Changes the Loan

The down payment is the part of the purchase price not financed by the mortgage. For a $300,000 purchase, for example, 10% is $30,000, leaving $270,000 to finance before other costs. A 20% down payment on that same price is $60,000, leaving $240,000. These figures describe only the price split; they do not include transaction costs or establish a monthly payment.

A larger down payment reduces the principal borrowed, all else being equal. That can affect the payment and total interest, but those amounts also depend on the interest rate, term, fees, and loan structure. A smaller down payment means a larger loan relative to the price. Depending on the loan’s terms, mortgage insurance may apply when the down payment is below a specified threshold. Ask the lender how it applies and what it costs; this calculator does not estimate it.

How to Estimate Cash Needed

The down payment is not necessarily the full amount of cash needed to complete a purchase. Costs due at or around closing can include lender and third-party charges, prepaid items, taxes, and insurance. The amounts vary by transaction and location, so obtain an itemized estimate from the lender and other relevant providers rather than adding an assumed flat percentage.

• Enter the purchase price, not the amount you hope to borrow.
• Enter the intended down payment percentage. For a dollar target, divide that amount by the purchase price and multiply by 100.
• Use the output as the down payment portion and estimated principal before other costs.
• Review a lender’s written estimate for the full amount due, mortgage insurance if applicable, and the proposed loan terms.

For example, if the intended down payment is $25,000 on a $250,000 price, then $25,000 ÷ $250,000 × 100 = 10%. The calculator would show a $25,000 down payment and $225,000 before other costs. This example does not imply that 10% is available or required for any particular loan.

Common Mistakes and Important Limits

A frequent misunderstanding is that a down payment percentage is calculated from the loan amount. In this calculator it is calculated from the home price. If a buyer wants to pay a certain dollar amount upfront, calculate that amount as a share of the price rather than treating it as a share of the eventual mortgage.

Another mistake is equating the down payment with total cash to close. The calculator subtracts only the down payment from the price; it does not account for closing charges, deposits, credits, or other adjustments. The final loan amount can also differ if the transaction includes financed costs or other loan-specific adjustments.

The calculation is not a preapproval, underwriting decision, or quote. It cannot account for a lender’s eligibility criteria, appraisal, property type, occupancy, credit review, or available loan terms. Ask the lender to confirm the applicable minimum, whether mortgage insurance applies, and the full estimated costs for the transaction.

Frequently Asked Questions

Can a conventional loan have less than 20% down?
Some conventional mortgages may permit less than 20% down, but availability and conditions vary by loan and lender. Confirm the current requirements for the specific loan you are considering.

Does a conventional loan always require 20% down?
No single percentage applies to every conventional loan. Twenty percent is a reference point, not a universal rule; the lender’s terms and the borrower’s circumstances matter.

What is 5% down on a $300,000 home?
Five percent of $300,000 is $15,000. The remaining $285,000 is the price less the down payment, before other costs or loan adjustments.

Is the down payment the same as cash to close?
No. Cash to close may include the down payment plus closing costs, prepaid items, and other transaction amounts, minus any applicable credits or deposits. Check an itemized estimate for the actual figure.

Can I use gift money for a conventional down payment?
Whether gifted funds are allowed and what documentation is needed depend on the loan and lender’s current rules. Ask the lender before relying on a gift in your funds calculation.

This result is an estimate; the lender’s disclosure gives the exact figures.

Related

• Short Year Escrow Statement Requirements Explained
• Understanding Escrow Statements and What They Show
• Short Year Escrow Statement Model Form

in price | Home price | $ | 300000 | 0 | 100000000
in pct | Down payment percentage | % | 5 | 0 | 100
out down | Down payment amount | $ | price * pct / 100 | 2
out loan | Mortgage amount before other costs | $ | price - down | 2