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Down Payment

Deposit, amount financed and flat interest after an interest-free period.

Free to use, no sign-up required. Down Payment is one of 198 tools built into Xenition, alongside a chat that can use them for you.

Splits a purchase price into a down payment due upfront and a financed balance, then works out a flat monthly instalment for a plan with an interest-free grace period.

How to use Down Payment

  1. Enter the Purchase price and the Down payment as a percentage.
  2. Enter the Interest rate (APR), the Grace period in months, and the Loan term in months.
  3. Read the Monthly payment, the principal and interest split, and the Total cost.

How it works

Down payment = price × percentage, and the loan is the rest. This is flat interest, not a reducing-balance mortgage: interest is charged on the full loan at APR ÷ 12 for each month after the grace period, so total interest = loan × APR ÷ 12 × (term − grace). The monthly payment is (loan + total interest) ÷ term. If the term is no longer than the grace period, there is no interest.

Example

A 300,000 purchase with 20% down needs 60,000 upfront and a 240,000 loan. At 6.5% over 24 months with 6 months grace, interest runs for 18 months: 240,000 × 0.065 ÷ 12 × 18 = 23,400. The monthly payment is 10,975 and the total cost is 323,400.

Questions about Down Payment

Is flat interest the same as a normal mortgage rate?

No. A mortgage charges interest on the balance still owed, which falls every month. Flat interest keeps charging on the original loan, so the same headline rate costs more.

How does a bigger down payment help?

It shrinks the loan, and interest here is a straight percentage of the loan, so interest and the monthly payment both fall.

Use it from chat

You do not have to open Down Payment to use it. Ask Xenition in plain language and it runs the right tool, then carries the answer into whatever you are working on — a document, a spreadsheet, a deck.

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