Whether you are estimating on the spot or checking a result somebody else gave you, the down payment calculator is the quickest way to get from i already saved…, down payment, …and every month i’m saving… and purchase amount to …so i’ll save for the down payment in, down payment percentage and rest of down.
What Is the Down Payment Calculator?
The down payment calculator takes i already saved..., down payment, ...and every month i'm saving... and purchase amount and turns them into ...so i'll save for the down payment in, down payment percentage and rest of down.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Down Payment Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with i already saved... set to 10, down payment set to 5, ...and every month i'm saving... set to 2, the calculator returns loan amount of 95, and down payment percentage of 0.05, and rest of down of -5. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out ...so i'll save for the down payment in?
Enter i already saved..., down payment, ...and every month i'm saving... and purchase amount. The calculator then works through the relationship and reports ...so i'll save for the down payment in, down payment percentage and rest of down.
What does the down payment actually calculate?
It takes i already saved..., down payment, ...and every month i'm saving... and purchase amount and converts them into ...so i'll save for the down payment in, down payment percentage and rest of down using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter i already saved...?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Can I use this for a quick estimate as well as a precise answer?
Yes. The calculator is built for quick checks, so round your inputs to a sensible number of significant figures and the result will be just as useful. If you need more precision, keep the same method and add digits to the inputs rather than adjusting the method itself.
Why does a small change in one value move the answer so much?
That happens when an output depends on a ratio, because dividing by a small number magnifies any change in it. Check the units first, then check whether the value you entered is in the range the relationship was designed for.