How to use the down payment calculator
- Choose Down payment for a home or Time to save it.
- For a home: enter the home price, your down payment as a percentage, and the closing costs as a percentage of the price.
- To plan your saving: enter your savings goal (down payment plus closing costs), what you've saved so far, your monthly saving and the interest rate (APY) your savings earn.
- Read the result and the table underneath: common down payment sizes for the home, or the monthly saving needed for different deadlines.
How the down payment is calculated
The loan-to-value ratio (LTV) is what lenders look at: it sets whether you pay mortgage insurance and often affects your rate. For the saving plan, the calculator adds a month's interest and your deposit each month until the balance reaches the goal. It converts the APY to a monthly rate so a year of compounding matches the advertised yield.
Worked example
The defaults for a home are a $400,000 price, 10% down and 3% closing costs:
- Down payment: 10% × 400,000 = $40,000
- Loan: 400,000 − 40,000 = $360,000, an LTV of 90%
- Closing costs: 3% × 400,000 = $12,000
- Cash to close: 40,000 + 12,000 = $52,000
- With less than 20% down, a conventional loan will usually need private mortgage insurance. Another $40,000 (20% = $80,000) would avoid it.
The defaults for saving are a $60,000 goal, $15,000 saved, $1,000 a month and 4% APY:
- Monthly rate: 1.04^(1/12) − 1 = 0.327%
- You need $45,000 more. Deposits alone would take 45 months; interest shortens that to 41 months, or 3 years 5 months
- By then you've deposited $41,000 and earned $4,953 of interest, for a balance of $60,953
Saving $1,500 a month instead gets you there in 2 years 4 months.
How much should you put down?
| Down payment | Typical loan type | Mortgage insurance |
|---|---|---|
| 0% | VA or USDA loan | VA funding fee or USDA guarantee fee instead |
| 3% | Conventional, often first-time buyers | PMI until about 78% to 80% LTV |
| 3.5% | FHA, credit score 580+ | FHA MIP, often for the life of the loan |
| 10% | Conventional or FHA | Less PMI; FHA MIP ends after 11 years |
| 20% or more | Conventional | None |
There's no single right answer. A bigger down payment means a smaller loan, a lower payment and no PMI at 20%. A smaller one gets you into a home sooner and keeps cash in reserve for repairs and emergencies, which matters more than many first-time buyers expect. On a $400,000 home, going from 10% to 20% down cuts the loan by $40,000 and removes PMI, but it takes another $40,000 of savings. The FHA loan calculator and VA mortgage calculator show the low-down-payment options, and our guide on how to get rid of PMI covers ending mortgage insurance later.
Closing costs are separate
Closing costs cover the lender's fees, appraisal, title insurance, recording fees and prepaid taxes and insurance. They commonly run 2% to 5% of the price and are due on top of the down payment, unless the seller agrees to pay part of them. See closing costs explained for what's included, and budget for moving costs and a cash cushion as well.
Frequently asked questions
Do I need 20% down to buy a house?
No. Many buyers put down 3% to 10%. Twenty percent is the level at which a conventional loan no longer needs private mortgage insurance, which is why it is often quoted.
What is the minimum down payment?
It depends on the loan. FHA loans need 3.5% with a credit score of 580 or higher, many conventional programs accept 3% for first-time buyers, and VA and USDA loans can require nothing down for eligible buyers.
Where should I keep my down payment savings?
Somewhere safe and easy to reach, such as a high-yield savings account, money market account or short-term CDs. If you plan to buy within a few years, the stock market's ups and downs can leave you short just when you need the money.
Can a gift count toward my down payment?
Usually, yes. Most loan programs allow gifts from family, with a signed gift letter stating the money doesn't have to be repaid. Lenders will want to see where the money came from, so don't move it around at the last minute.
Related calculators
- Home Affordability Calculator — How much house your income supports under the 28/36 rule, with your debts and down payment.
- Mortgage Calculator — Your full monthly housing cost, including property tax, insurance, PMI and HOA fees.
- FHA Loan Calculator — FHA mortgage payment with upfront and annual MIP, property tax and insurance, using HUD's current premium rates.
- Savings Goal Calculator — How much to save each month to reach a goal by a date, or how long your current savings will take.
Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.