Down Payment Calculator
Down Payment Calculator
Enter the total purchase price of the home.
Use the quick buttons to select a common down payment percentage.
Enter the annual mortgage interest rate. Check current rates with your lender.
Typically 2%–5% of the home price. Default is 3%.
Savings Timeline (Optional)
How much you can add to savings each month toward your down payment goal.
Enter Your Home Details
Fill in the home price, down payment, interest rate, and loan term to see your full cost breakdown — including monthly payments, PMI, closing costs, and savings timeline.
Important
This calculator is provided for general information only and is not financial, tax, or legal advice. Results are estimates and do not reflect your full circumstances, current rates, fees, or eligibility rules. Speak to a qualified professional before making a financial decision.
Plan your home purchase with confidence — calculate down payment, monthly payments, PMI, and savings timeline.
Buying a home is one of the largest financial decisions most people will ever make, and the down payment is often the biggest hurdle standing between you and the front door. The down payment is the upfront portion of the purchase price that you pay in cash — the rest is financed through a mortgage. A larger down payment reduces your loan balance, lowers your monthly payments, and can eliminate the need for Private Mortgage Insurance (PMI), potentially saving you tens of thousands of dollars over the life of your loan. Our Down Payment Calculator makes it easy to model your home purchase before you ever speak to a lender. Simply enter the home price, your desired down payment (as a percentage or dollar amount), the interest rate, and loan term, and the calculator instantly shows you your down payment amount, loan amount, monthly principal-and-interest payment, estimated closing costs, and the total cash you will need at closing. If your down payment falls below 20%, the calculator also shows your monthly PMI cost and the exact month when PMI will be removed from your payment — once your loan balance drops below 80% of the home's original value. Understanding how different down payment levels affect your finances is crucial when planning a home purchase. Putting down just 3% on a $400,000 home means borrowing $388,000 — resulting in higher monthly payments, years of PMI costs, and more interest paid over the life of the loan. Putting down 20% ($80,000) eliminates PMI entirely, reduces your loan to $320,000, and dramatically lowers your total interest paid. Our scenario comparison table shows you the numbers at 5%, 10%, 15%, and 20% side by side so you can make the trade-off that fits your budget. The savings timeline feature is particularly helpful for first-time buyers who are still building their down payment fund. Enter your current savings balance and monthly savings contribution, and the calculator projects how many months it will take to reach your full cash-at-closing goal — including both the down payment and estimated closing costs. A visual savings curve shows your progress over time, with a goal line marking exactly when you will hit your target. Loan program eligibility is another critical factor. Not all mortgages require 20% down. Conventional loans backed by Fannie Mae and Freddie Mac allow as little as 3% down with no PMI alternative programs like HomeReady and Home Possible. FHA loans require just 3.5% down for borrowers with credit scores of 580 or higher. VA loans and USDA loans offer 0% down options for qualifying veterans and rural-area buyers, respectively. Our eligibility badges display which programs you may qualify for based on your down payment percentage. Closing costs are an often-overlooked part of the cash-at-closing calculation. In addition to your down payment, you will typically owe 2%–5% of the home price in closing costs covering lender fees, title insurance, appraisal, prepaid taxes and insurance, and other expenses. We default this to 3% — a realistic mid-range estimate — but you can adjust it up or down to match your specific market or lender quote. The total cash needed figure at the top of the results tells you the full amount you need to have liquid on closing day. Whether you are a first-time buyer just starting to save, a repeat buyer deciding between upgrading your down payment or keeping cash for renovations, or simply modeling a future purchase, this calculator gives you a complete financial picture in seconds. Use the export button to download your results as a CSV file, or print a clean summary to share with your financial advisor or mortgage lender.
Understanding Down Payments
What Is a Down Payment?
A down payment is the portion of a home's purchase price that you pay upfront in cash, rather than financing through a mortgage. It is expressed as a percentage of the purchase price — for example, a 20% down payment on a $400,000 home is $80,000. The remaining $320,000 is the loan amount, which you repay over time with interest. The size of your down payment directly affects your loan-to-value ratio (LTV), your eligibility for various loan programs, your monthly payment, and whether you must pay Private Mortgage Insurance. Down payments come from personal savings, investment accounts, gifts from family members, down payment assistance programs, or proceeds from the sale of a prior home. Lenders typically require documented proof of where your down payment funds originated, and funds must usually be 'seasoned' (in your account for at least 60 days) to qualify.
How Are Mortgage Payments Calculated?
Your monthly mortgage payment is calculated using the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (loan term in years multiplied by 12). For example, a $320,000 loan at 6.75% annual interest over 30 years gives r = 0.005625 and n = 360, resulting in a monthly payment of approximately $2,076 for principal and interest. Over the full 30 years, you would pay about $427,360 in interest on top of the original $320,000 principal — a total of $747,360. Increasing your down payment reduces P and therefore reduces both your monthly payment and total interest paid. PMI is calculated separately as approximately 0.85% of the loan amount annually (approximately $227/month on a $320,000 loan), divided into monthly installments.
Why Does Your Down Payment Size Matter?
The size of your down payment has a cascading effect on almost every aspect of your mortgage. A larger down payment means a smaller loan balance, which produces a lower monthly payment and less total interest over the life of the loan. Equally important is the 20% threshold: borrowers who put down less than 20% on a conventional loan are required to pay Private Mortgage Insurance, which adds $100–$300 per month or more to your housing cost until your loan balance drops below 80% of the original home value — often 7–11 years into the loan. A larger down payment can also help you qualify for a lower interest rate, since lenders view lower LTV loans as less risky. Down payment size determines which loan programs you are eligible for, and it affects your debt-to-income ratio, which lenders scrutinize carefully when evaluating your application.
Calculator Limitations and Assumptions
This calculator provides estimates based on the information you enter and standard industry assumptions. It does not account for property taxes, homeowner's insurance, or HOA fees, which can add hundreds of dollars per month to your actual housing costs. The PMI rate is estimated at 0.85% of the loan balance annually, which is a common average — your actual PMI rate may be higher or lower depending on your credit score, loan-to-value ratio, and lender. Closing costs are estimated at a default of 3% of the home price, but actual closing costs vary by state, county, and lender and can range from 2% to 5% or more. The savings timeline assumes a fixed monthly contribution with no investment return; in practice, you may earn interest on savings in a high-yield account. Interest rates shown are hypothetical — actual mortgage rates depend on your credit profile, lender, loan type, and market conditions at the time of application.
How to Use the Down Payment Calculator
Enter the Home Price
Type the total purchase price of the home you are buying or considering. This is the starting point for all calculations, including the down payment amount, loan amount, monthly payment, and closing cost estimates.
Set Your Down Payment
Toggle between percentage (%) and dollar ($) entry. Use the quick-select buttons to instantly model 3%, 5%, 10%, 15%, or 20% down. The calculator keeps both values in sync automatically. If your down payment is below 20%, the PMI section will appear showing your monthly cost and the month PMI is removed.
Adjust Rate, Term, and Closing Costs
Enter the interest rate quoted by your lender (or the current market average). Select your desired loan term — 30 years is standard, but a 15-year term can save dramatically on interest. Adjust the closing cost percentage if you have a better estimate from your lender or local market.
Enter Savings Details for a Timeline
If you are still saving toward your goal, enter your current savings balance and how much you add each month. The calculator will show how many months until you reach the full cash-at-closing amount, along with a visual savings curve so you can track your progress toward your home purchase goal.
Frequently Asked Questions
How much down payment do I need to buy a house?
The minimum down payment depends on the loan type you choose. Conventional loans backed by Fannie Mae and Freddie Mac allow as little as 3% down through programs like HomeReady and Home Possible, though you will pay PMI until you reach 20% equity. FHA loans require 3.5% down with a credit score of 580 or higher. VA loans for eligible veterans and active-duty military, and USDA loans for rural buyers meeting income limits, require no down payment at all. Jumbo loans — those exceeding the conforming limit of $766,550 in most areas in 2024 — typically require 10%–20% or more. While you can buy with less, putting down at least 20% eliminates PMI and reduces your monthly payment significantly.
What is PMI and when can I get rid of it?
Private Mortgage Insurance (PMI) is a policy that protects your lender — not you — in case you default on the loan. It is required on conventional loans when your down payment is less than 20% of the home's purchase price, adding roughly 0.5%–1.5% of the loan amount per year to your costs (commonly around 0.85%, or approximately $142/month on a $200,000 loan). Under the Homeowners Protection Act, you have the right to request PMI cancellation once your loan balance reaches 80% of the original purchase price, and lenders must automatically terminate PMI when the balance reaches 78%. Our calculator shows you the exact month this milestone is reached. You can also pay PMI more quickly by making extra principal payments.
What closing costs should I budget for?
Closing costs typically range from 2% to 5% of the home's purchase price and are paid on closing day in addition to your down payment. Common closing costs include origination fees (0.5%–1% of the loan), appraisal fee ($300–$600), title search and insurance ($700–$1,500), recording fees, prepaid property taxes (often 2–6 months upfront), prepaid homeowner's insurance, and prepaid mortgage interest. On a $400,000 home, closing costs could range from $8,000 to $20,000. Some lenders offer no-closing-cost loans that roll these fees into the rate. Always request a Loan Estimate from your lender, which itemizes all closing costs, within three days of submitting a mortgage application.
Is it better to put down 20% or invest the extra cash?
This is a common trade-off. Putting down 20% eliminates PMI — saving you $100–$300 per month — and reduces your loan balance, lowering your interest costs. On the other hand, putting down 10% and investing the other 10% could generate higher long-term returns if market performance exceeds your mortgage interest rate, especially when that rate is tax-deductible. Historically, broad stock market returns have averaged 7%–10% annually, which can outpace a 6–7% mortgage rate over the long term. However, investing carries risk and requires discipline. Most financial advisors recommend ensuring you have a solid emergency fund before deciding to put less down in favor of investing.
How do I save for a down payment faster?
To accelerate down payment savings, start by setting a specific target — use our calculator to determine the exact dollar amount you need, including closing costs. Open a dedicated high-yield savings account (HYSA) to earn 4%–5% APY and keep funds separate from everyday spending. Automate monthly transfers on payday so saving happens before you have a chance to spend the money. Cut major discretionary expenses, consider a temporary side income, and look into down payment assistance programs offered by state and local housing agencies — many provide grants or low-interest second loans to qualified buyers. First-time buyers may also be eligible to withdraw up to $10,000 from an IRA penalty-free for a home purchase, and some employers offer homebuyer assistance benefits.
What is a conforming loan limit and how does it affect my down payment?
A conforming loan limit is the maximum loan amount that Fannie Mae and Freddie Mac will purchase from lenders. In 2024, the baseline conforming limit is $766,550 for a single-family home in most U.S. counties, with higher limits in high-cost areas (up to $1,149,825 in places like San Francisco and New York City). If your loan exceeds the conforming limit, you need a jumbo loan, which typically requires a larger down payment — often 10%–20% minimum — and stricter credit and income requirements. When planning your purchase, check the conforming loan limits for your specific county, as they vary. Keeping your loan at or below the limit gives you access to more competitive rates and lower down payment options.