Down Payment Calculator
Figure out how much to save for your down payment and see how different amounts affect your monthly mortgage payment, PMI, and total cost. Compare scenarios from 3% to 20% and beyond.
How to Use This Calculator
- Enter the target home price you're considering.
- Input your planned down payment as a dollar amount or percentage.
- Set the expected interest rate and loan term.
- View how your down payment affects the loan amount, monthly payment, and PMI.
- Compare multiple scenarios (3%, 5%, 10%, 20%) side by side.
- Optionally enter your monthly savings to see how long it takes to reach your goal.
How Down Payment Affects Your Mortgage
Your down payment directly determines your loan amount, which drives monthly payments and total interest:
Loan amount = Home price − Down payment
PMI required if down payment < 20% (conventional)
PMI cost ≈ 0.5%–1.5% of loan amount per year
A larger down payment means a smaller loan, lower monthly payments, no PMI (at 20%+), and potentially a better interest rate from lenders.
Example Scenarios
$400,000 Home — Comparing Down Payments
5% down ($20,000): Loan $380,000 · Payment $2,465 + $158 PMI = $2,623/mo
10% down ($40,000): Loan $360,000 · Payment $2,335 + $150 PMI = $2,485/mo
20% down ($80,000): Loan $320,000 · Payment $2,076 + no PMI = $2,076/mo
Rate: 6.75%, 30-year fixed
FHA Minimum — 3.5% on $275,000
Down payment: $9,625 · Loan: $265,375 · FHA MIP: ~$155/mo
Monthly P&I: $1,722 + MIP + taxes/insurance
Total monthly: ~$2,127 · Good option for first-time buyers with limited savings
Savings Timeline — Saving $1,500/month for 20% on $350,000
Target: $70,000 (20% of $350,000)
Monthly savings: $1,500
Time to reach goal: ~47 months (about 4 years)
Consider: Is it better to wait 4 years or buy now with 10% down?
Tips for Your Down Payment Strategy
- Keep 3–6 months of expenses as reserves in addition to your down payment.
- Budget 2–5% of the home price for closing costs on top of your down payment.
- Research down payment assistance programs in your state — many offer grants or forgivable loans.
- Consider the trade-off: waiting to save 20% means more rent paid and potentially higher home prices.
- Gift funds from family are allowed on most loan programs with proper documentation.
- High-yield savings accounts or CDs can help your down payment fund grow while you save.
Frequently Asked Questions
How much should I put down?
20% is ideal to avoid PMI, but 10–15% is practical for many buyers. First-time buyers can start at 3–3.5%. Balance the PMI cost against how long it would take to save more.
What is the minimum down payment?
Conventional: 3–5%, FHA: 3.5%, VA: 0%, USDA: 0%. Jumbo loans typically need 10–20%. Lower down payments mean higher monthly costs due to PMI/MIP.
Does a larger down payment get a better rate?
Often yes. Lenders price risk — more equity means lower risk. The biggest rate improvement usually comes at 20%, with additional benefits at 25% on some programs.
Should I empty my savings for a bigger down payment?
No. Keep 3–6 months of expenses in reserve, plus funds for closing costs and moving. Being "house poor" with no emergency fund is risky.
Can I use gift money?
Yes. Most programs allow gift funds from family with a gift letter. FHA allows 100% gift funds. Conventional may require some of your own funds at lower down payment levels.