Down Payment Calculator
Use this down payment calculator to see how much cash you need to buy a home: the down payment itself, estimated closing costs, the resulting loan amount and loan-to-value ratio, and whether a conventional loan would carry PMI. Enter what you have saved and what you can put aside each month, and it estimates how long it will take to get there, with a table comparing down payments from 3% to 25%.
Updated
Results
- Months to saveShown when your savings plan reaches the goal
- Down payment percentage
- Loan amountPrice − down payment
- Loan-to-value (LTV)Loan ÷ price
- Closing costsEstimate at the percentage you entered
- Still to saveCash needed − current savings
- Years to saveShown when your savings plan reaches the goal
- Interest earned while saving
- Minimum down paymentConventional 3%, FHA 3.5%
- Minimum down payment amount
- Meets the minimum?
- Mortgage insurance
| Down | Down payment | Loan amount | Cash needed | Months to save |
|---|
Results are estimates. See the methodology below.
How to use the calculator
- Home price: the purchase price you are aiming for.
- Down payment: as a percentage of the price or as a dollar amount.
- Loan type: conventional or FHA. This sets the minimum down payment check and the mortgage insurance note.
- Closing costs: a percentage of the price. The 3% default is only a placeholder; replace it with a lender's estimate when you have one.
- Savings plan: what you have today, what you add each month and the annual yield your savings earn.
Months and years to save appear only when the goal can be reached with the savings plan you entered.
How it works
- Down payment = price × percentage (or the amount you enter).
- Loan amount = price − down payment.
- Loan-to-value (LTV) = loan ÷ price. 20% down means 80% LTV.
- Cash needed = down payment + closing costs; the gap is what's left after your current savings.
To estimate the time to save, your balance grows each month at (1 + yield)^(1/12) − 1, so twelve months compound to exactly the annual yield, and your monthly deposit is added at the end of each month. The count stops in the first month the balance covers the cash needed. Taxes on interest, changes in home prices and changes in your savings rate are not included.
The minimum down payment check uses 3% for conventional and 3.5% for FHA. These are the lowest options, not a guarantee: Fannie Mae's 3% programs have conditions (its standard 97% LTV loan requires at least one first-time homebuyer, HomeReady has its own restrictions), and your lender and credit profile decide what you qualify for. PMI is flagged as required for a conventional loan with less than 20% down; FHA loans are flagged as carrying their own mortgage insurance premium. VA and USDA loans are not modeled.
Examples
1. 20% down on a $400,000 home
The down payment is $80,000, the loan $320,000 (80% LTV) and closing costs at 3% add $12,000, so you need $92,000. With $20,000 saved, $1,500 a month and a 4% yield, you reach it in 43 months, with $7,657.26 of that coming from interest. With no yield at all it takes 48 months.
2. Same home, smaller down payments
| Down | Down payment | Loan | Cash needed | Months |
|---|---|---|---|---|
| 3% | $12,000 | $388,000 | $24,000 | 3 |
| 5% | $20,000 | $380,000 | $32,000 | 8 |
| 10% | $40,000 | $360,000 | $52,000 | 20 |
| 20% | $80,000 | $320,000 | $92,000 | 43 |
Closing costs stay at $12,000 because they are figured on the price. Below 20% down, a conventional loan is flagged for PMI.
3. FHA with 3.5% down
On a $300,000 home, 3.5% is $10,500, leaving a $289,500 loan (96.5% LTV). With $9,000 in closing costs you need $19,500. Starting from $5,000 and saving $800 a month at 4%, that takes 18 months.
Choosing a down payment
A smaller down payment gets you into a home sooner but means a bigger loan, more interest over time and, on most low-down-payment loans, mortgage insurance. A larger one lowers the monthly payment but can drain the emergency fund you'll want after moving in. Compare the payments for each option with our mortgage calculator before deciding.
Frequently asked questions
Do I need 20% down to buy a house?
No. Fannie Mae says some buyers may be able to buy with as little as 3% down, for example through its HomeReady program (restrictions apply), and HUD says FHA down payments may be as low as 3.5%. Putting down 20% on a conventional loan mainly helps you avoid private mortgage insurance.
When is PMI required?
The CFPB explains that you typically pay private mortgage insurance on a conventional loan when your down payment is less than 20% of the purchase price. PMI protects the lender, not you, if you stop making payments.
Does an FHA loan have mortgage insurance?
Yes. FHA loans carry their own mortgage insurance premium instead of PMI, which is why the calculator shows a separate note for FHA. The premium is not included in the cash needed here; ask your lender for the current amounts.
What do closing costs include?
According to the CFPB, common items include appraisal fees, title insurance, government taxes and prepaid items such as property taxes, homeowners insurance and interest until your first payment. The seller may pay some costs depending on the contract or state law, and seller or lender credits usually come back through a higher price, loan amount or rate.
What is a good loan-to-value ratio?
LTV is the loan divided by the home's price or value. Lower is generally better for your rate and insurance cost; 80% LTV, which means 20% down, is the conventional PMI threshold.
Can I get help with the down payment?
Fannie Mae notes that down payment assistance may be available through many state housing finance agencies. Programs and eligibility vary by state and income, so check with your state's agency or a lender.
Sources
Results are estimates for planning purposes, not a loan offer or financial advice. Minimum down payments, mortgage insurance and closing costs depend on the lender, the loan program and your credit profile.