Down Payment & Loan-to-Value Calculator
The down payment is the portion of a home’s price you pay upfront in cash; the rest becomes the mortgage. Its size sets your loan-to-value (LTV) ratio, which lenders use to price risk — a lower LTV usually means a better rate and no mortgage insurance.
Enter the home price and the down payment percentage you plan to make. The calculator shows the cash needed, the loan amount and the LTV ratio. Most conventional loans require at least 5–20% down depending on the country and product.
It is most useful early in the buying process, when you are choosing how much cash to put down and want to see the loan size and mortgage-insurance threshold that follow.
Enter your values to see the result.
How this is calculated
The down payment is the cash portion of a home’s price paid upfront; the remainder becomes the mortgage. This calculator takes the home price and a down-payment percentage and computes three things: the cash needed (price × percentage), the loan amount (price minus the cash), and the loan-to-value ratio (loan ÷ price, expressed as a percentage).
Loan-to-value (LTV) is the number lenders care about most after credit score, because it measures their risk if you default. An LTV of 80% or lower typically unlocks the best rates and avoids mortgage insurance entirely. Above 80%, lenders usually add private mortgage insurance to the monthly payment, and some products cap LTV at 95% or 97%.
The calculation is direct arithmetic with no assumptions about rate, term or income. It does not include closing costs (often 2–5% of the price), inspection or appraisal fees, moving costs, or the reserves lenders may require you to hold after closing. Those cash needs sit on top of the down payment, so your total cash-to-close is higher than the figure shown here.
Worked example
A $350,000 home with a 20% down payment.
- 1Down payment cash = 350,000 × 0.20 = $70,000.
- 2Loan amount = 350,000 − 70,000 = $280,000.
- 3Loan-to-value = 280,000 ÷ 350,000 = 0.80 = 80%.
- 4At 80% LTV you typically avoid mortgage insurance and qualify for the best rates.
Frequently asked questions
- What is a good loan-to-value ratio?
- An LTV of 80% or lower typically avoids mortgage insurance and unlocks the best rates. Above 80%, lenders usually add insurance to offset the higher risk.
- Is a bigger down payment always better?
- A larger down payment lowers your monthly payment and interest cost, but tying up too much cash can leave you short for emergencies and moving costs. Balance both.
- Does LTV affect refinancing?
- Yes. Lower LTV gives more refinancing options and better terms. If home values rise, your LTV falls even without extra payments.
- What is private mortgage insurance (PMI)?
- PMI protects the lender when your LTV is above 80% (a down payment under 20%). It is added to your monthly payment until your LTV falls to the cancellation threshold, typically 78–80% through payments or appreciation. A larger down payment avoids it entirely.
- Are there programs with lower down payments?
- Yes. Some markets offer 5% or 3% down conventional loans, and government-backed schemes can require zero down in specific cases. These usually carry mortgage insurance or fees that raise your monthly cost, so weigh the lower upfront cash against the higher ongoing payment.
Related calculators
Method: direct arithmetic (price, percentage, LTV). No external data source. Last updated: September 2026.
These results are indicative estimates for planning only and do not constitute financial advice. Actual loan terms, tax rules, investment returns and product conditions vary by country, provider and your personal circumstances. Always confirm figures with your bank, tax authority or a qualified financial adviser before making decisions.