Down Payment Calculator
Navigate the upfront costs of homeownership with clarity and confidence.
Down Payment Calculator
The down payment is often the biggest obstacle to buying a home. This calculator shows you exactly how much you need to save, how different amounts affect your monthly payment, and when you'll cross the 20% threshold to avoid PMI.
What Does This Calculator Do?
Enter a home price and your target down payment percentage (or amount) to see your loan amount, monthly payment, and whether PMI applies. It also shows how long it will take to save your down payment based on a monthly savings amount.
How to Use This Calculator
- Enter the home purchase price.
- Enter your target down payment percentage (3%, 5%, 10%, 20%, etc.).
- Enter the interest rate and loan term.
- Enter your monthly savings toward the down payment to see how long it takes to reach your goal.
- Click Calculate to see full results.
Down Payment Benchmarks
- 3%: Minimum for some conventional loans (Fannie/Freddie); requires strong credit.
- 3.5%: FHA loan minimum (credit score 580+).
- 5%–10%: Conventional loan with PMI; more lenders available.
- 20%: Avoids PMI on conventional loans; saves $100–$250/month.
- 25%+: Best rates from many lenders; very strong application.
Example Calculation
Home price: $350,000 | 10% down: $35,000 | Rate: 7% | 30 years
- Loan amount: $315,000
- Monthly P&I: ≈ $2,096
- PMI (0.5% annually): ≈ $131/month → total ≈ $2,227
- At 20% down ($70,000): loan $280,000 → monthly P&I ≈ $1,863 + no PMI
- Savings by putting 20% down: ~$364/month
Saving Toward Your Down Payment
To save $70,000 (20% on a $350k home) in 3 years: need to save $1,944/month. In 5 years: $1,167/month. In 7 years: $833/month. Use a Savings Calculator to model this with interest.
Common Mistakes to Avoid
- Draining all savings for 20% down — Keep 3–6 months of expenses as emergency fund. Don't leave yourself cash-poor after closing.
- Forgetting closing costs — Budget an additional 2%–5% of the home price for closing costs on top of the down payment.
- Waiting too long for a perfect 20% — In a rising market, prices may outpace your savings. Sometimes buying sooner with PMI is the smarter move.
- Not exploring down payment assistance programs — Many states, counties, and cities offer grants or loans to first-time buyers. These are often overlooked.
Frequently Asked Questions
Can I buy a house with no down payment?
Yes — VA loans and USDA loans offer 0% down to qualifying borrowers. FHA requires 3.5%. Some conventional programs allow 3%.
Is it better to put more down to avoid PMI?
It depends on your situation. PMI on a $300k loan costs roughly $100–$150/month. If it takes years to save the extra 10% for 20% down, you may lose more in rent than you save in PMI.
What is PMI and when does it end?
Private Mortgage Insurance protects the lender if you default. It's required on conventional loans with less than 20% down. You can request cancellation when equity reaches 20%, and it must be removed at 22% under federal law.
Can I use gift money for a down payment?
Yes — most loan programs allow gift funds from family members. You'll need a gift letter stating the money is not a loan.
How does down payment affect my interest rate?
A larger down payment (especially 20%+) can qualify you for a lower interest rate tier. The difference between a 5% and 20% down payment can affect your rate by 0.25%–0.5%.
Conclusion
Your down payment is the foundation of your home purchase — it affects your loan amount, monthly payment, PMI, and interest rate. Use this calculator to find the right target and map out a savings plan to get there.
Related: Mortgage Calculator | House Affordability Calculator | Savings Calculator | FHA Loan Calculator
Expert Advice
Closing costs vary by state and lender. Always ask for a "Loan Estimate" early in the process to get a more accurate picture of the upfront cash you'll need.
