Down Payment Calculator: Determine Down Payment for a Specific Monthly Payment
A Down Payment Calculator that helps you determine how much of a down payment is required to achieve a specific monthly mortgage payment.
- Home Price: The total cost of the house.
- Desired Monthly Payment: The monthly mortgage payment you want to achieve.
- Interest Rate: The loan's annual percentage rate (APR).
- Loan Term: The number of years for the mortgage (typically 30 years).
This calculator will work backward from the monthly payment to calculate the loan amount, and then subtract that from the total home price to determine the necessary down payment.
Example: $1,500,000 House with a $3,500 Monthly Payment
Let’s assume a 30-year mortgage at an interest rate of 6%.
Step 1: Calculate the loan amount based on the monthly payment
The formula for the loan amount based on the monthly payment is:
P = M * (1 - (1 + r)^(-n)) / r
Where:
- P = Loan principal (amount borrowed)
- M = Desired monthly payment = $3,500
- r = Monthly interest rate = 6% / 12 = 0.005
- n = Loan term in months = 30 years × 12 = 360 months
Let’s calculate the loan amount. Then, subtract that from the home price to determine the down payment.
For a $1,500,000 house with a desired monthly mortgage payment of $3,500 at an interest rate of 6% over 30 years, the loan amount would be approximately $583,771.
To achieve this, you would need a down payment of approximately $916,229.
Would you like to create a script that can calculate this for any house price and monthly payment?
Easily calculate how much you'll need upfront based on the home price and your chosen down payment percentage. Whether you're aiming for 5%, 10%, or 20%, this tool makes financial planning simple, giving you a clear view of your path to homeownership.
