Down Payment Calculator
Calculate how much you need for a down payment and how long it will take to save.
The Down Payment Calculator shows how much cash you need upfront to buy a home, including closing costs, and how long it will take to save. It helps first-time buyers understand the financial runway required and whether to aim for 20% down (no PMI) or a lower down payment with mortgage insurance.
Examples
20% Down on $350,000 Home
FHA Loan (3.5% Down)
Frequently Asked Questions
What is the minimum down payment for a house?
What are closing costs?
Should I put 20% down?
Quick Tips
- •20% down avoids Private Mortgage Insurance (PMI), saving hundreds per month.
- •Closing costs are often negotiable. Ask the seller to contribute.
- •FHA loans allow as little as 3.5% down; conventional loans often require 5-20%.
- •Factor in an emergency fund beyond your down payment savings.
- •Consider a high-yield savings account to earn interest while saving.
The Down Payment Calculator shows how much cash you need upfront to buy a home, including closing costs, and how long it will take to save. It helps first-time buyers understand the financial runway required and whether to aim for 20% down (no PMI) or a lower down payment with mortgage insurance.
How to Use This Calculator
Enter the home price, desired down payment percentage, your current savings, and how much you can save per month. Optionally set the closing cost percentage. The calculator will show the total cash needed and how long it will take to reach your goal.
Understanding the Formula
Down Payment = Home Price x Down Payment%. Closing Costs = Home Price x Closing Cost%. Total Needed = Down Payment + Closing Costs. Months to Save = (Total Needed - Current Savings) / Monthly Savings.
Examples
20% Down on $350,000 Home
Down payment = $350,000 x 20% = $70,000. Closing costs (3%) = $10,500. Total needed = $80,500. Saving $1,500/month with $10,000 already saved: ($80,500 - $10,000) / $1,500 = 47 months (about 4 years).
FHA Loan (3.5% Down)
On a $300,000 home: $300,000 x 3.5% = $10,500 down payment. Plus ~$9,000 closing costs = $19,500 total. Much more accessible for first-time buyers, but requires mortgage insurance.
Frequently Asked Questions
What is the minimum down payment for a house?
It varies by loan type. FHA loans require 3.5%, conventional loans typically require 3-5% minimum, and VA/USDA loans may require 0% down for eligible borrowers.
What are closing costs?
Closing costs include lender fees, title insurance, appraisal fees, attorney fees, and prepaid items like taxes and insurance. They typically run 2-5% of the home price.
Should I put 20% down?
Putting 20% down avoids PMI and lowers your monthly payment, but it is not required. Weigh the benefits against the opportunity cost of tying up that cash.
Assumptions & Limitations
- Home price remains constant; actual home prices fluctuate based on market conditions.
- Monthly savings rate is consistent; income fluctuations and unexpected expenses may disrupt savings plans.
- Closing costs are estimated at 2-5% of home price; actual costs vary by location, lender, and property.
- Does not include required appraisal gaps, home inspections, or contingency reserves (typically 1-2% extra).
- Assumes down payment and closing costs are the only cash outflows; moving costs and immediate repairs are not modeled.