🏠 Finance
Down Payment Calculator
Use this free down payment calculator to get fast, accurate results.
📝 Your Assumptions
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This down payment calculator shows exactly what your monthly payment, total interest, and total amount paid will be for any loan amount, interest rate, and term. It's built for homebuyers, car shoppers, and anyone financing a large purchase who needs real numbers before signing. Enter three fields and see the full cost of borrowing in seconds.
How to Use This Calculator
Three inputs are all you need to see your full loan cost.
1
Enter Your Loan Amount
Type the amount you're financing after your down payment, not the purchase price. For a $450,000 home with 20% down, enter $360,000. This is the principal the lender disburses.
2
Add the Interest Rate
Input the annual percentage rate (APR) your lender quoted, such as 6.75% or 7.25%. Even a 0.5% difference changes a $360,000 loan's total interest by tens of thousands over 30 years. Use the exact rate from your Loan Estimate.
3
Choose Your Loan Term
Select 15, 20, or 30 years from the dropdown. A 30-year term at 7% on $360,000 costs about $2,395 monthly, while a 15-year at 6.5% runs roughly $3,137. Shorter terms mean higher payments but far less interest.
4
Read Your Monthly Payment
The calculator returns your principal-and-interest payment. On a $360,000 loan at 7% for 30 years, that's $2,395.06. This figure excludes property taxes, homeowners insurance, and HOA dues, which your lender adds to escrow.
5
Review Total Interest and Total Paid
Total Interest shows what borrowing costs over the life of the loan — $502,221 on that same 30-year example. Total Paid is principal plus interest, or $862,221. Compare terms here before committing.
What Your Results Mean
Each output tells you something different about the true cost of your loan.
Monthly Payment
This is your principal-and-interest (P&I) payment, the core of your housing or auto cost. A $25,000 car loan at 8% for 5 years gives a $506.91 monthly payment. Add taxes, insurance, and fees to estimate your true monthly outlay.
Total Interest
The cumulative cost of borrowing over the full term. A $360,000 mortgage at 7% for 30 years accrues $502,221 in interest — more than the amount borrowed. Dropping to a 15-year term at 6.5% cuts that to roughly $204,660.
Total Paid
Principal plus interest — the full cash outlay if you never refinance or prepay. The $360,000 at 7% for 30 years totals $862,221. This number makes long terms feel expensive and short terms feel efficient.
Down Payment Effect
A larger down payment shrinks the loan amount, which lowers both monthly payment and total interest. Putting 20% down on a $450,000 home ($90,000) leaves a $360,000 loan; 10% down ($45,000) leaves $405,000 and adds about $299 to the monthly payment at 7%.
Interest Rate Sensitivity
Rates compound across every payment. On a $360,000 30-year loan, 6.5% costs $459,882 in total interest; 7.5% costs $546,135 — an $86,253 difference for the same house. Shopping lenders for 0.25% saves real money.
Loan Term Trade-Off
A 15-year loan at 6.5% on $360,000 has a $3,136.69 monthly payment but only $204,604 in total interest. The 30-year at 7% has a lower $2,395.06 payment but $502,221 in interest. Choose based on cash flow versus total cost.
Key Terms
Principal
The amount you borrow, separate from interest. On a $360,000 mortgage, the principal is $360,000; every payment reduces it slightly.
Amortization
The schedule of payments that splits each month between interest and principal. Early payments are mostly interest; later payments are mostly principal.
APR
Annual Percentage Rate — the interest rate plus lender fees, expressed as a yearly percentage. It's usually higher than the quoted interest rate and better reflects true borrowing cost.
Loan Term
The length of time you have to repay the loan, typically 15 or 30 years for mortgages and 3 to 7 years for auto loans. Longer terms mean lower payments but more total interest.
Down Payment
The cash you pay upfront toward a purchase, reducing the amount financed. A 20% down payment on a $450,000 home is $90,000, leaving a $360,000 loan.
❓ Frequently Asked Questions
On a $450,000 home, 20% down is $90,000, leaving a $360,000 loan. At 7% for 30 years, that loan costs $2,395.06 monthly and $502,221 in total interest. If you put only 10% down ($45,000), the loan becomes $405,000, the monthly payment rises to $2,694.44, and total interest climbs to $565,000. That's roughly $299 more per month and about $62,800 more in interest over the life of the loan. The 20% threshold also eliminates private mortgage insurance (PMI), which typically costs 0.5% to 1.5% of the loan amount annually — on $405,000, that's $2,025 to $6,075 per year. Use the mortgage calculator to see how different down payment percentages change your numbers, then factor in PMI savings when comparing scenarios.
Take a $360,000 loan. At 7% for 30 years, the monthly payment is $2,395.06 and total interest is $502,221. At 6.5% for 15 years (rates are typically 0.5% lower on shorter terms), the monthly payment jumps to $3,136.69, but total interest drops to $204,604 — a savings of $297,617. The trade-off is cash flow: you pay $741.63 more each month for 15 years to save nearly $300,000. If you can afford the higher payment, the 15-year loan is dramatically cheaper. If not, a 30-year loan with extra principal payments when possible gives flexibility. Run both scenarios through the loan calculator to compare exact figures for your loan amount and rate.
Rate changes are magnified over long terms. On a $360,000 30-year mortgage, 6.5% produces a $2,275.44 monthly payment and $459,158 in total interest. At 7.5%, the payment becomes $2,517.06 and total interest hits $546,140 — an extra $86,982 for the same house. That's because interest compounds on a larger balance for longer. Even a 0.25% difference matters: 7.0% versus 7.25% on $360,000 over 30 years changes total interest by about $20,500. Shopping multiple lenders and negotiating can save you tens of thousands. After you get quotes, plug each rate into this down payment calculator to see the real lifetime difference before you commit.
Compare guaranteed returns. A larger down payment earns a guaranteed return equal to your mortgage rate. If your loan is at 7%, every extra $10,000 you put down saves $10,000 in principal that would have cost 7% annually — a guaranteed 7% return. Investing that $10,000 in the stock market historically returns 7% to 10% annually, but with volatility and risk. If your mortgage rate is 7% or higher, paying down the loan is often the better risk-adjusted choice. If your rate is 4%, investing may win. Example: $20,000 extra down on a $360,000 loan at 7% for 30 years reduces the loan to $340,000, saving about $41,850 in total interest. Use the mortgage calculator to model your specific rate and down payment amount, then compare against expected investment returns.
Car loans work the same way as mortgages but over shorter terms. On a $35,000 car with $5,000 down, you finance $30,000. At 8% for 5 years (60 months), the monthly payment is $608.29 and total interest is $6,497.40. If you put $10,000 down instead, you finance $25,000, the payment drops to $506.91, and total interest falls to $5,414.50 — saving $101.38 monthly and $1,082.90 in interest. A 20% down payment on a car is standard and helps you avoid being upside-down (owing more than the car is worth). Use the auto loan calculator to test different down payments, rates, and terms for your specific vehicle price.
Extra payments go directly to principal and shorten your loan, saving interest. On a $360,000 mortgage at 7% for 30 years, the payment is $2,395.06. Add $200 extra each month and you'll pay off the loan about 5 years early and save roughly $110,000 in interest. Add $500 extra and you'll finish nearly 10 years early, saving over $190,000. The reason is amortization: early payments are mostly interest, so reducing principal early eliminates future interest on that amount. Even one extra payment per year — $2,395 — saves about $50,000 and cuts 3 to 4 years off a 30-year loan. Use the loan calculator to see your baseline, then ask your lender how to apply extra payments specifically to principal, not to next month's bill.
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