Down Payment Calculator
Calculate your down payment, monthly savings goal, and timeline to homeownership
The estimated purchase price of your future home
How much you've already saved toward your down payment
How much you can save each month toward your down payment
High-yield savings accounts currently offer 4-5% APY
Down Payment Needed
% of
Savings Progress
Target Date
years ( months) You've reached your goal!
Loan Amount
After down payment
PMI Status
Est. /mo
20%+ avoids PMI
Monthly Savings
Your contribution
Interest Earned
At % APY
Down Payment Options Comparison
| Down Payment | Amount | Loan Amount | PMI |
|---|---|---|---|
| Selected | No Yes |
Don't Forget Additional Costs
Your down payment is just part of the upfront costs. Budget for:
- • Closing costs: (2-5% of home price)
- • Home inspection: $300-$500
- • Moving expenses: $1,000-$5,000
- • Emergency fund: Keep 3-6 months of expenses in reserve
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About Down Payment Calculator
What is a Down Payment Calculator?
A down payment calculator helps you determine how much money you need to save for a home purchase and creates a realistic savings plan to reach your goal. It shows you the relationship between home price, down payment percentage, and the timeline needed to save.
How to Use This Calculator
- Enter Home Price: The estimated price of the home you want to buy
- Set Down Payment Percentage: Choose between common options (3%, 5%, 10%, 20%) or enter a custom amount
- Enter Current Savings: How much you've already saved for your down payment
- Set Monthly Contribution: How much you can save each month toward your goal
- Review Results: See your savings timeline, total goal, and monthly breakdown
Understanding Down Payment Percentages
Why 20% is Often Recommended
- Avoids Private Mortgage Insurance (PMI)
- Lower monthly payments
- Better loan terms and interest rates
- More equity from day one
- Stronger offer in competitive markets
Lower Down Payment Options
| Down Payment | Typical Loan Type | PMI Required | Notes |
|---|---|---|---|
| 3% | Conventional | Yes | Fannie Mae HomeReady |
| 3.5% | FHA Loan | Yes (MIP) | Government-backed |
| 5% | Conventional | Yes | Standard minimum |
| 10% | Conventional | Yes | Lower PMI rates |
| 20%+ | Conventional | No | No PMI required |
The True Cost of Your Down Payment
Beyond the Down Payment
Remember to budget for additional costs:
- Closing Costs: 2-5% of home price
- Home Inspection: $300-$500
- Appraisal: $300-$600
- Moving Expenses: $1,000-$5,000
- Immediate Repairs/Furniture: Varies
Emergency Fund
Financial experts recommend keeping 3-6 months of expenses in savings even after your down payment. Don't drain all savings for the down payment.
Down Payment Savings Strategies
Automatic Savings
Set up automatic transfers to a dedicated savings account on payday. Treat it like a bill you must pay.
High-Yield Savings Accounts
Keep your down payment fund in a high-yield savings account (HYSA) earning 4-5% APY instead of a regular account earning 0.01%.
Boost Your Savings
- Reduce discretionary spending
- Take on side work or freelance
- Sell unused items
- Direct tax refunds and bonuses to savings
- Consider a temporary roommate
Down Payment Assistance Programs
Many states and localities offer down payment assistance programs for first-time homebuyers:
- Grants (don't require repayment)
- Forgivable loans
- Low-interest second mortgages
- Tax credits
PMI Considerations
What is PMI?
Private Mortgage Insurance protects the lender if you default. It's required when your down payment is less than 20%.
PMI Costs
- Typically 0.5% to 1.5% of loan amount annually
- On a $300,000 loan: $1,500-$4,500 per year ($125-$375/month)
- Can be removed once you reach 20% equity
Ways to Avoid or Remove PMI
- Save for 20% down payment
- Use piggyback loans (80-10-10)
- Request PMI removal at 20% equity
- Refinance after building equity
- Consider lender-paid PMI options
Timeline Considerations
Realistic Expectations
For a $400,000 home with 20% down ($80,000):
- Saving $500/month = 13+ years
- Saving $1,000/month = 6.5+ years
- Saving $2,000/month = 3+ years
Market Timing
While saving, home prices may increase. Consider:
- Starting with a smaller/starter home
- Lower down payment with PMI
- Different neighborhoods with lower prices
- Condo or townhouse instead of single-family
Frequently Asked Questions
What's the minimum down payment I need?
For conventional loans, typically 3-5%. FHA loans require 3.5%. VA and USDA loans may offer 0% down for eligible borrowers.
Should I wait until I have 20% saved?
Not necessarily. Consider the trade-off between PMI costs and opportunity cost of waiting (rent payments, potential home appreciation).
Can I use gift money for a down payment?
Yes, most loan programs allow gift funds from family members. Documentation is required proving the gift doesn't need to be repaid.
How do I prove my down payment source?
Lenders require documentation (bank statements, gift letters) showing where your down payment funds come from. Large deposits need explanation.
What if home prices increase while I'm saving?
Adjust your target home price or down payment percentage. Consider buying sooner with a smaller down payment or expand your search to more affordable areas.
Should I invest my down payment savings?
For short-term goals (under 3 years), keep funds in high-yield savings. The stock market is too volatile for money you'll need soon.
Disclaimer: This calculator provides estimates for educational purposes only. Actual requirements vary by lender and loan program. Consult with a mortgage professional for specific advice.
Down Payment Strategies
💰 Boost Your Savings
- • Use a high-yield savings account (4-5% APY)
- • Set up automatic transfers on payday
- • Direct bonuses and tax refunds to savings
- • Reduce discretionary spending temporarily
🏠 First-Time Buyer Options
- • FHA loans require only 3.5% down
- • VA loans offer $0 down for veterans
- • USDA loans offer $0 down in rural areas
- • Check for state down payment assistance