Down Payment Calculator
Calculate how much to save for a house down payment. Compare different scenarios and see your savings timeline.
Home & Savings Details
No PMI required at 20%+
Annual rate on your savings account
Annual PMI rate (typically 0.5-1%)
Your Down Payment Plan
Down Payment Amount
$70,000
Loan Amount
$280,000
Monthly PMI
None — 20%+ down
Time to Reach Goal
3 yr 2 mo
Savings Progress
14.3%Down Payment Comparison
| Down % | Down Payment | Loan Amount | Monthly PMI | Time to Save |
|---|---|---|---|---|
| 5% | $17,500 | $332,500 | $207.81 | 5 mo |
| 10% | $35,000 | $315,000 | $196.88 | 1 yr 5 mo |
| 15% | $52,500 | $297,500 | $185.94 | 2 yr 3 mo |
| 20%Selected | $70,000 | $280,000 | None | 3 yr 2 mo |
Quick Select Down Payment
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How to Use the Down Payment Calculator
Our free down payment calculator helps you plan for one of the biggest purchases of your life — buying a home. Simply enter the home price you're considering, choose your target down payment percentage, and see exactly how much you need to save. The calculator instantly shows you multiple scenarios comparing 5%, 10%, 15%, and 20% down payments so you can make an informed decision.
Understanding Private Mortgage Insurance (PMI): When your down payment is below 20%, lenders require PMI to protect themselves against default. This calculator estimates your monthly PMI cost based on the standard rate of 0.5-1% of the loan amount per year. For many buyers, the cost of PMI is worth it to get into a home sooner rather than waiting years to save 20%. PMI is automatically removed once you build 20% equity through payments and appreciation.
Planning Your Savings Timeline: Enter your current savings and monthly contribution amount to see exactly when you'll reach your down payment goal. The calculator accounts for interest earned on your savings, giving you a realistic timeline. If the timeline is too long, you can adjust the home price or target percentage to find a plan that works for your budget.
Comparing Down Payment Scenarios: The comparison table shows you side-by-side how different down payment percentages affect your loan amount, estimated monthly payment, and PMI costs. A larger down payment means a smaller loan and lower monthly payments, but it also means more time saving. Use this tool to find the sweet spot between affordability and getting into your home on your timeline.
First-Time Homebuyer Tips: If you're a first-time buyer, look into FHA loans (3.5% down with a 580+ credit score), VA loans (0% down for eligible veterans), and state-specific down payment assistance programs. Many employers also offer homebuyer benefits. The most important thing is to start saving early and consistently — even small monthly contributions add up over time thanks to compound interest.
Frequently Asked Questions
How much down payment do I need to buy a house?
Most conventional loans require a minimum of 3-5% down payment, while FHA loans allow as little as 3.5%. However, putting 20% down lets you avoid private mortgage insurance (PMI), which typically costs 0.5-1% of the loan amount annually. VA loans and USDA loans may require no down payment at all. The right amount depends on your financial situation, loan type, and how quickly you want to build equity.
What is PMI and how does it affect my mortgage?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI protects the lender if you default on the loan. It typically costs between 0.5% and 1% of the total loan amount per year, added to your monthly mortgage payment. For a $300,000 loan, PMI could cost $125-$250 per month. PMI is automatically removed once you reach 20% equity in your home.
Should I put 20% down or a smaller amount?
Putting 20% down eliminates PMI and reduces your monthly payment, but it means waiting longer to buy and tying up more cash. A smaller down payment lets you buy sooner and keep cash for emergencies, renovations, or investments. Run the numbers: if PMI costs $150/month but you can invest the difference and earn more, a smaller down payment might be smarter. Consider your local market, interest rates, and personal savings rate.
How long does it take to save for a down payment?
The time depends on the home price, your target percentage, and how much you can save monthly. For a $350,000 home with a 20% down payment ($70,000), saving $1,500 per month would take about 3.9 years. Our calculator shows you the exact timeline based on your inputs, including the impact of earning interest on your savings. Many first-time buyers target 5-10% to buy sooner.
What other costs should I budget besides the down payment?
Beyond the down payment, expect to pay 2-5% of the purchase price in closing costs, which include loan origination fees, appraisal, title insurance, and prepaid items like property taxes and homeowners insurance. You should also budget for a home inspection ($300-$500), moving costs, and an emergency fund for unexpected repairs. A good rule of thumb is to have an additional 3-5% of the home price saved beyond your down payment.
Can I use gift money for a down payment?
Yes, most loan programs allow gift funds for all or part of your down payment. Conventional loans require a gift letter from the donor stating the money is a gift, not a loan. FHA loans allow 100% of the down payment to come from gifts if your credit score is 620 or higher. VA and USDA loans also accept gift funds. The donor is typically required to be a family member, though some programs allow gifts from close friends or employers.