Down Payment Calculator
Find your target down payment amount and see exactly how long it will take to save based on your current savings rate.
🏡 What is a Down Payment Calculator?
A down payment calculator helps homebuyers figure out how much money they need to save for a home purchase, how long it will take to reach that goal based on their current savings and monthly contributions, and whether their planned down payment will trigger mortgage insurance requirements. The down payment is the upfront cash portion of a home purchase - the difference between the purchase price and the mortgage loan amount you borrow from the lender.
Down payment planning is critical in three common situations: first-time buyers who are saving from scratch and need a concrete timeline, repeat buyers who are selling one home but want to estimate how much equity they can put toward the next one, and buyers deciding between different down payment strategies - for example, whether to wait until they can reach 20% to avoid PMI, or buy sooner with 10% down. The calculator also separates out estimated closing costs (typically 2-3% of the purchase price) so you can see the full cash requirement at closing, not just the down payment alone.
A common misconception is that 20% down is required to buy a home. It is not required, but it is the threshold below which lenders typically require Private Mortgage Insurance (PMI) on conventional loans. PMI protects the lender if you default and costs roughly 0.5% to 1.5% of the loan amount annually. On a $320,000 loan, PMI at 1% costs $267 per month, which is significant. PMI is not permanent: you can request cancellation once your LTV reaches 80% through payments or appreciation, and it is automatically removed at 78% LTV per federal law.
This calculator shows you all the numbers in one place: the exact dollar amount needed for any down payment percentage, how much you still need to save, how many months it will take at your current savings rate with compound interest, the resulting loan amount and LTV, PMI status and estimated monthly cost, and a closing cost estimate. Use it to plan your home purchase timeline and make informed decisions about how much to put down.
📐 Formula
Down Payment = Home Price × (Down Payment % ÷ 100)
Loan Amount = Home Price − Down Payment
LTV = (Loan Amount ÷ Home Price) × 100
PMI required = yes when LTV > 80% (conventional loans)
Monthly PMI estimate = Loan Amount × 1% ÷ 12 (mid-range rate; actual 0.5% to 1.5%)
Closing cost estimate = Home Price × 3% (typical range 2% to 5%)
Savings Future Value: FV = P0 × (1+r)n + PMT × ((1+r)n − 1) ÷ r
P0 = current savings, PMT = monthly contribution, r = monthly return = annual rate ÷ 12 ÷ 100
n = months to goal = smallest n where FV(n) ≥ Down Payment Required
Example: $400,000 home, 20% down: DP = $80,000; loan = $320,000; LTV = 80%; no PMI. With $30,000 saved, $2,000/month at 4%: goal reached in 23 months.
📖 How to Use This Calculator
Steps to Plan Your Home Down Payment
1
Enter the home price - Type or slide to the purchase price you are targeting. The down payment dollar amount and loan balance in the info row update automatically as you adjust the price or percentage.
2
Set your down payment percentage - Slide to your target. 20% is the conventional PMI-free threshold; 3.5% is the FHA minimum; 3% is the lowest for certain conventional programs. The info row shows the exact dollar amount as you adjust.
3
Enter your current savings and monthly contribution - Set how much you have already saved for this goal and how much you can save each month. These drive the timeline. If you have no savings yet, enter $0 for current savings.
4
Set your annual savings return rate - Enter the annual yield on your savings. Use 4-5% for a high-yield savings account in 2024, or the actual rate from your savings vehicle. Use 0% if your savings earn nothing.
5
Review all results - Click Calculate to see down payment required, time to goal, loan amount, LTV, PMI status and estimated monthly cost, amount still needed, and closing cost estimate. Adjust any input to instantly explore different scenarios.
💡 Example Calculations
Example 1 — $400,000 Home, 20% Down, 23-Month Timeline
$400,000 home | 20% down | $30,000 saved | $2,000/month | 4% return
1
Down payment = $400,000 × 20% = $80,000. Loan amount = $320,000. LTV = 80%. PMI: not required (LTV exactly at 80% threshold). Closing costs (3%) = $12,000.
2
Already saved: $30,000. Still need: $80,000 − $30,000 = $50,000. Monthly savings: $2,000, return: 4%/yr (r = 0.003333/month).
3
Simulating month by month: balance = bal × 1.003333 + $2,000 each month. After 20 months: ~$73,400. After 22 months: ~$77,900. After 23 months: ~$80,200 - goal reached.
Down Payment: $80,000 | Time to Goal: 23 months (1 yr 11 mo) | PMI: Not required
Try this example →Example 2 — $300,000 Home, 20% Down, 25-Month Timeline
$300,000 home | 20% down | $20,000 saved | $1,500/month | 4% return
1
Down payment = $300,000 × 20% = $60,000. Loan = $240,000. LTV = 80%. No PMI. Closing costs (3%) = $9,000. Still need = $40,000.
2
FV formula: after 24 months at $1,500/month, 4% return, starting from $20,000 = ~$59,355 (just under target). After 25 months: ~$60,703 - goal reached.
Down Payment: $60,000 | Time to Goal: 25 months (2 yr 1 mo) | PMI: Not required
Try this example →Example 3 — $500,000 Home, 10% Down, PMI Required
$500,000 home | 10% down | $25,000 saved | $2,000/month | 4% return
1
Down payment = $500,000 × 10% = $50,000. Loan = $450,000. LTV = 90%. PMI: required - est. $450,000 × 1% ÷ 12 = $375/month. Closing costs (3%) = $15,000.
2
Already saved $25,000. Still need $25,000. FV simulation: after 11 months = ~$48,054. After 12 months: ~$50,452 - goal reached.
3
Trade-off: 10% down is $40,000 less than 20% ($90,000 vs $50,000 goal), but adds $375/month in PMI until the loan reaches 80% LTV (approx. 8 years of payments at minimum). Total PMI cost = approx. $36,000 over that period.
Down Payment: $50,000 | Time to Goal: 12 months | PMI: $375/month est.
Try this example →Example 4 — $350,000 Home, 3.5% (FHA Minimum), Fast Timeline
$350,000 home | 3.5% down | $5,000 saved | $1,500/month | 4% return
1
Down payment = $350,000 × 3.5% = $12,250. Loan = $337,750. LTV = 96.5%. Mortgage insurance required (PMI/MIP at this LTV). Still need = $12,250 − $5,000 = $7,250.
2
FV simulation at $1,500/month, 4%: after 4 months = ~$11,097 (under target). After 5 months: ~$12,626 - goal reached. Very fast timeline for a low down payment target.
3
Note: FHA loans have their own Mortgage Insurance Premium (MIP), which differs from conventional PMI. Also budget for FHA-specific upfront MIP (1.75% of loan). See the FHA Loan Calculator for the complete FHA payment breakdown.
Down Payment: $12,250 | Time to Goal: 5 months | Closing costs: $10,500 est.
Try this example →❓ Frequently Asked Questions
How much down payment do I need to buy a house in 2024?
The minimum down payment depends on the loan type. Conventional loans: 3% with Fannie Mae HomeReady or Freddie Mac Home Possible programs, 5% standard. FHA loans: 3.5% with a 580+ credit score or 10% with a 500-579 score. VA loans: 0% for eligible veterans. USDA loans: 0% in eligible rural areas. The traditional 20% down is not required but eliminates PMI on conventional loans. Most first-time buyers put down between 6% and 12%.
What is the down payment on a $300,000 house at 20%?
The down payment on a $300,000 house at 20% is $60,000. Your loan amount would be $240,000, and your LTV would be exactly 80%, so no PMI is required on a conventional loan. You would also need to budget for closing costs, typically 2-3% of the purchase price ($6,000 to $9,000), in addition to the $60,000 down payment. So total cash needed at closing is approximately $66,000 to $69,000.
What is the minimum down payment for a conventional loan?
The minimum is 3% for first-time buyers using Fannie Mae HomeReady or Freddie Mac Home Possible programs, and 5% for most repeat buyers. Putting less than 20% down triggers PMI at 0.5% to 1.5% of the loan amount annually. PMI is cancelable once you reach 80% LTV through payments, and it is automatically removed at 78% LTV per the Homeowners Protection Act. Jumbo loans (above conforming limits) typically require 10% to 20% down.
Should I put 20% down or buy with less and pay PMI?
Both approaches can be correct depending on your situation. With less than 20% down, PMI at 1% on a $300,000 loan costs $250/month until you hit 80% LTV. If waiting 3 more years to save 20% down means the home price rises 5%/year from $400,000 to $463,000, the price increase of $63,000 far exceeds 3 years of PMI ($9,000). In a flat or falling market, waiting for 20% saves money. Use both scenarios with real numbers for your market to decide.
What is PMI and how do I calculate how much it costs?
PMI (Private Mortgage Insurance) protects the lender if you default on a conventional loan with less than 20% down. The cost is 0.5% to 1.5% of the original loan amount annually, depending on your credit score, loan type, and LTV. On a $320,000 loan at 1% PMI, the monthly cost is $267. This calculator uses 1% as a midpoint estimate. Your actual PMI rate will be specified in your Loan Estimate from the lender. PMI is cancelled at 80% LTV (by request) or 78% LTV (automatically by law).
Are closing costs part of the down payment?
No - closing costs are separate from the down payment. Both must be paid at settlement. Closing costs typically run 2% to 5% of the purchase price and include lender origination fees, title insurance, appraisal fee, attorney fees, and prepaid amounts (property taxes and homeowners insurance escrow). This calculator estimates closing costs at 3% of the home price as a reasonable midpoint. Request a Loan Estimate from your lender early in the process to get precise cost projections.
How long does it take to save for a 20% down payment?
It depends on the home price and your monthly savings rate. For a $300,000 home requiring $60,000 down, starting from $20,000 saved and adding $1,500 per month at 4% return takes approximately 25 months. For a $500,000 home requiring $100,000 down from $30,000 saved at $2,500/month takes approximately 26 months. Use this calculator with your specific numbers to get your personal timeline. Increasing your monthly contribution by $250 typically shaves 2 to 4 months off the timeline.
What is the down payment on a $400,000 house at different percentages?
On a $400,000 home: 3% down = $12,000 (loan $388,000); 3.5% = $14,000 (loan $386,000); 5% = $20,000 (loan $380,000); 10% = $40,000 (loan $360,000); 20% = $80,000 (loan $320,000, no PMI); 25% = $100,000 (loan $300,000). Each percentage point of down payment on a $400,000 home equals $4,000. The PMI elimination at 20% saves roughly $267/month ($3,200/year) compared to 10% down.
Where should I keep my down payment savings?
Down payment savings should be in a liquid, low-risk account because you will need the money within a defined timeframe. High-yield savings accounts (HYSA) currently offer 4% to 5% APY and are FDIC-insured. Money market accounts offer similar rates with check-writing privileges. Short-term CDs (6 to 12 months) lock in rates if you know your purchase timeline. Avoid investing down payment money in stocks or mutual funds since a market downturn right before you need the funds could delay your home purchase.
Can down payment assistance programs help reduce the amount I need?
Yes - many programs exist. Federal programs include FHA loans (3.5% minimum), VA loans (0%), and USDA loans (0%). State and local housing finance agencies offer grants and second mortgages for down payment assistance, often for first-time buyers below area median income limits. Employer-assisted housing programs are available at some companies. Gifts from family members are allowed for most loan types (with a signed gift letter). Check HUD.gov for a list of state housing agencies and available programs in your area.
What is LTV and why does it matter for my mortgage?
LTV (Loan-to-Value ratio) is your loan amount divided by the home's value, expressed as a percentage. LTV = (Loan Amount / Home Price) x 100. An 80% LTV means you are borrowing 80% and have 20% equity. LTV matters for three reasons: it determines whether PMI is required (over 80% LTV), it affects your interest rate (lower LTV often means a better rate), and it governs when PMI can be cancelled (at 80% by request or 78% automatically). Higher down payments produce lower LTV and better loan terms.
Does the first-time homebuyer down payment vary by state or city?
The required minimum down payment percentage is set by the loan program (FHA, conventional, VA, USDA) and does not vary by location. However, many state and local housing agencies offer down payment assistance grants and loans that can effectively reduce the out-of-pocket amount you need. These programs vary significantly by state, county, and city, and typically have income and purchase price limits. First-time buyer programs are especially common; check your state housing finance agency for current offerings in your area.