--- title: "How Much Down Payment Do You Need? | MCC Solutions" description: "See what a down payment looks like at 3%, 5%, 10% and 20% of the price, and how it changes the loan you take on." url: "https://mcc-solutionsnj.com/tools/guides/how-much-down-payment-do-you-need" --- Guide · Updated October 24, 2026 # How Much Down Payment Do You Need? The down payment is the part of the price you pay up front, and the rest is borrowed. There is no single right percentage, but seeing the numbers side by side makes the tradeoffs clear. By [Matthew Coleman](/about), MCC Solutions Want this tracked every month? Wrenfold keeps your budget on your own device. [See Wrenfold](/personal-finance) ## The basic math Down payment equals price times the percentage. The loan equals price minus the down payment. On a $300,000 purchase, 3% down is $9,000 and a $291,000 loan. 5% down is $15,000 and a $285,000 loan. 10% down is $30,000 and a $270,000 loan. 20% down is $60,000 and a $240,000 loan. ## What a bigger down payment changes Borrowing less lowers your monthly payment and the interest you pay over the loan. The gap between 3% and 20% on this example is $51,000 of borrowed money, and interest is charged on every dollar of it for as long as you owe it. Lender rules also depend on the percentage. Some loan programs set minimums, and a smaller down payment can bring extra monthly costs such as mortgage insurance. Those rules vary by loan type and lender, so ask for the current terms. ## What a bigger down payment costs you Cash you put down is cash you cannot use elsewhere. Emptying savings for a down payment can leave you without a cushion for repairs, moving costs or a gap in income. Many people keep a reserve rather than putting every dollar into the purchase. ## Do not forget the other up-front costs The down payment is separate from closing costs, moving expenses, furniture and initial repairs. Add those to your savings target so the total is realistic. ## Try the calculator Run your own numbers in the free [down payment calculator](/bookkeeping/down-payment-calculator). It works in your browser and nothing you enter is saved or sent. ## Sources - [CFPB: owning a home](https://www.consumerfinance.gov/owning-a-home/) ## Common questions **Is 20% required?** No. It is a common benchmark, not a universal rule. Required minimums depend on the loan program and lender. **Does the down payment include closing costs?** No. They are separate. **Can gifts count toward a down payment?** Some programs allow it with documentation. Ask the lender for its rules. This guide is general information, not financial, tax or legal advice. Rates, fees and rules change, so confirm current terms with the lender, store or agency involved. All dollar figures are invented examples. Free tool [### Down payment calculator Enter your own numbers. Private, runs in your browser. Open the calculator →](/bookkeeping/down-payment-calculator) More guides - [How to Compare Two Loan Offers](/tools/guides/how-to-compare-two-loan-offers) - [How to Calculate Stacked Discounts Correctly](/tools/guides/how-to-calculate-stacked-discounts) - [How to Tip and Split a Bill Fairly](/tools/guides/how-to-tip-and-split-a-bill) [All guides](/tools/guides) Reach families handling estates, aging parents and life changes who read this guide: [advertise here](/advertise#family). Excel workbook ### Home Buying Cost and Affordability Planner Put in your income, debts and savings, then compare homes on the real monthly cost and the cash you need on closing day. [See what is inside ($19)](/toolkits/home-buying-cost-planner) [Try the free starter](/toolkits/home-buying-cost-planner#free-starter) Also in the [Home and Big Purchase Bundle](/toolkits/home-and-big-purchase-bundle): 4 products for $55 instead of $76 separately. Wrenfold ### Keep this going in a budget you own Wrenfold keeps accounts, budgets, bills and goals on your own computer or iPhone, with budgets that roll over each month. Bring in a bank CSV or your You Need A Budget file, or keep balances current through SimpleFIN Bridge, a separate service you sign up for. $79 once, with an optional $5 a month for updates; the app keeps working if you stop. The free trial records up to 60 entries. [See Wrenfold](/personal-finance) [Compare the three apps](/software) ## Need help with your business finances? [Contact us](/contact)[Call (908) 444-6373](tel:+19084446373)