About the Down Payment Calculator
This down payment calculator answers three questions at once: how much cash you need up front for a home, how big the resulting mortgage will be, and how long it will take to save the money from where you are today. Enter the target price and the percentage you want to put down, and it adds estimated closing costs so the savings goal reflects the full amount you will bring to the table.
It is designed for renters and first-time buyers planning a purchase, and for anyone weighing a smaller down payment now against waiting to reach 20%. Your current savings and monthly contributions are grown at the interest rate you enter (for example a high-yield savings account), month by month, until they reach the goal.
Common minimums are 3% for some conventional loans, 3.5% for FHA and 0% for VA and USDA loans. Putting down 20% or more on a conventional loan avoids private mortgage insurance, which is why the calculator shows your loan-to-value ratio alongside the savings plan.
With the default inputs, the down payment needed is $70,000.00. Change any value above to recalculate instantly.
How to use the down payment calculator
- 1Enter the price of the home you are aiming for.
- 2Choose a down payment percentage — 20% avoids PMI on a conventional loan.
- 3Add estimated closing costs, or set them to zero.
- 4Enter your current savings, monthly savings and the interest your savings earn.
- 5Read the down payment, loan amount and how many months until you reach the goal.
Formula and method
The down payment is the home price times your chosen percentage; the loan is what remains, and loan-to-value is the loan divided by the price. Closing costs are estimated as a percentage of the price and added to form the total cash goal.
Savings grow month by month: last month’s balance earns interest at the yearly rate ÷ 12, then your monthly contribution S is added. The number of months is the first month in which the balance meets or exceeds the goal. Contributions are assumed to be made at the end of each month.
- Bₘ
- Savings balance after month m
- i
- Monthly interest rate (yearly rate ÷ 12 ÷ 100)
- S
- Monthly savings contribution
- LTV
- Loan ÷ price × 100
Worked examples
$350,000 home, 20% down, saving $1,500 a month
Twenty percent of $350,000 is $70,000, leaving a $280,000 loan. Adding 3% closing costs makes the goal $80,500. Starting from $25,000 and saving $1,500 a month at 4%, you pass the goal in month 34 — 2 years and 10 months from now.
$300,000 FHA-style purchase with 3.5% down
A 3.5% down payment on $300,000 is $10,500, and closing costs add $9,000 for a $19,500 goal. From $5,000 saved and $800 a month at 4%, you reach it after 18 months.
$500,000 home, 10% down, no interest on savings
Ten percent down on $500,000 is $50,000. With $10,000 saved, the remaining $40,000 at $2,000 a month takes exactly 20 months when savings earn no interest.
Frequently asked questions
How much should I put down on a house?+
Twenty percent avoids PMI on a conventional loan and lowers your payment, but it is not required. Many buyers put down 3% to 10%. Balance a larger down payment against keeping an emergency fund and cash for closing and moving costs.
What is the minimum down payment?+
Conventional loans can go as low as 3% for eligible buyers, FHA loans require 3.5% with a credit score of 580 or higher (10% for 500–579), and VA and USDA loans can require no down payment at all.
Do I need to save for closing costs too?+
Yes. Closing costs typically add 2% to 5% of the price on top of the down payment. Sellers or lenders sometimes cover part of them, but it is safest to include them in your savings goal.
Where should I keep my down payment savings?+
Because you will need the money within a few years, most people use low-risk accounts such as high-yield savings, money market accounts, CDs or Treasury bills rather than stocks, which can fall just before you buy.
Can a down payment be a gift?+
Most loan programs, including FHA and conventional loans, allow gifts from relatives for some or all of the down payment. Lenders usually require a signed gift letter and a record of the funds being transferred.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.
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