Down Payment Calculator
Calculate down payment, loan amount, EMI, and months needed to save for a home or car
tunePurchase Details
Down Payment Required
₹15,00,000
≈ 15 Lakh (20% of price)
Loan Amount
₹60,00,000
80% financed by bank
Monthly EMI
₹52,069
@ 8.5% for 20 yrs
Total Interest
₹64,96,609
52.0% of loan
Total Cost of Purchase
₹1,39,96,609
DP + Total Payment
Down Payment %
20%
of purchase price
Down Pay
20%
Down Payment
₹15,00,000
Loan Amount
₹60,00,000
functions Down Payment
Down Payment = Price × DP%
Loan = Price − Down Payment
EMI uses standard reducing-balance formula on the loan amount
How Much Down Payment Should You Make?
A higher down payment reduces your loan amount, lowers your EMI, and saves significant interest over the loan tenure. However, it also requires you to have that cash available upfront — which may not always be possible.
RBI mandates minimum down payments: 10% for home loans under ₹30L, 20% for ₹30L–₹75L, and 25% for above ₹75L. For car loans, 10–20% is standard. Always leave an emergency fund after paying the down payment — don't deplete your entire savings.
lightbulb Impact of Down Payment
₹75L property at 8.5% for 20 years
120% DP (₹15L) → EMI ₹52,069 | Interest ₹64.9L
230% DP (₹22.5L) → EMI ₹45,561 | Interest ₹56.8L
3Extra ₹7.5L in DP saves ₹8.1L in interest!
✓ Every rupee in extra down payment saves ~₹1.08 in total interest (at 8.5% for 20 years)
Frequently Asked Questions
Down payment planning for home and car buyers in India
What is the minimum down payment for a home loan in India?
RBI mandates: 10% minimum for home loans up to ₹30 lakh (LTV 90%), 20% for ₹30L–₹75L (LTV 80%), and 25% for above ₹75L (LTV 75%). These are regulatory minimums — paying 25–30% improves approval chances, reduces EMI burden, and saves lakhs in interest. Some schemes (like PMAY) may allow lower down payment for eligible first-time buyers.
Should I put more down payment or invest the extra cash?
Compare post-tax home loan rate vs expected investment return. Home loan at 8.5% with Section 24(b) deduction effectively costs ~6.5–7% (in 30% bracket). If you can consistently earn 10–12% in equity mutual funds, investing beats extra down payment mathematically. However, a higher down payment reduces risk, is guaranteed, and improves your loan-to-value ratio. Both approaches are valid depending on your risk tolerance.
Can I use my EPF or PPF for down payment?
Yes, with conditions. EPF: you can withdraw up to 90% of your EPF balance for purchase of a plot/house after 5 years of service. Partial withdrawal for purchase of plot/flat is allowed after 5 years; repayment of home loan after 10 years. PPF: partial withdrawal (up to 50% of balance) is allowed from the 7th year onwards. SCSS, bonds, and FDs can also be liquidated. Plan 6–12 months ahead to avoid last-minute liquidity pressure.
What costs besides down payment should I budget for a home purchase?
Total outlay includes: down payment + stamp duty (4–7% of property value) + registration charges (1%) + GST on under-construction property (5%) + society maintenance deposit + modular kitchen/interiors (₹5–20L depending on size) + home loan processing fee (0.5–1%) + legal charges (₹10,000–₹50,000). Budget an additional 8–12% over the property price for these costs.