Down Payment

The cash portion you pay upfront toward the purchase price.

Example Result

Sample Data

$77,000

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Down Payment Formula

Purchase Price × Down Payment %

$385,000 × 20.00%

$77,000

What This Means

A sample property priced at $385,000 with $2,850/month rent has a down payment of $77,000. Your down payment directly affects leverage, cash-on-cash return, and monthly cash flow. A 20% down payment avoids PMI on conventional loans. Putting less down increases leverage (amplifying both gains and losses), while putting more down provides a larger equity cushion and lower monthly payments.

Where to Find This Value

Here's where you can find the value for Down Payment:

Loan Estimate

Your Loan Estimate shows the exact down payment dollar amount

Purchase Price x Down Payment %

Calculated as your purchase price multiplied by your down payment percentage

Calculated From

Down Payment is calculated using these inputs:

Purchase Price

The agreed-upon price to acquire the property.

Found on your purchase contract / hud-1

$385,000

Down Payment Percent

The down payment as a percentage of the purchase price.

Found on your lender requirements

20.00%

Used to Calculate

Down Payment is used as an input for these calculations:

Platform Distribution

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Why It Matters

Your down payment directly affects leverage, cash-on-cash return, and monthly cash flow. A 20% down payment avoids PMI on conventional loans. Putting less down increases leverage (amplifying both gains and losses), while putting more down provides a larger equity cushion and lower monthly payments.

Detailed Explanation

The Down Payment is the portion of the purchase price you pay out of pocket at closing. It can be expressed as a percentage of the purchase price (e.g., 20%) or as a fixed dollar amount. A larger down payment reduces your loan amount and monthly mortgage payment, but ties up more cash that could be used for other investments.