Down Payment Calculator

Calculate required down payments, estimate affordable home prices, analyze closing costs, compare loan programs, and plan your home purchase budget.

Purchase Budget

Cash on hand and target down payment

Upfront Cash Available

Down Payment

Mode

Include Closing Costs in cash budget

Closing Cost Estimate

CC Mode

Loan Assumptions

Used to estimate your monthly payment

Interest Rate

Loan Term

Loan Program

PMI Rate (annual)

0.3–1.5% typical

About the Down Payment Calculator

A down payment is the cash you put toward a home at closing — the rest is financed with a mortgage. How much you put down drives almost every other number in the deal: the loan amount, the monthly payment, whether you pay mortgage insurance, the interest rate the lender offers, and the lifetime cost of the loan. This calculator turns that single number into a complete home-purchase plan.

The four tabs above let you solve the problem from any direction: start with cash on hand to find an affordable home price, start with a target home to find the required down payment, plan how much you need to save each month to get there, or compare conventional, FHA, VA, USDA, and jumbo programs side by side.

How Down Payments Work

It's cash, not financing

The down payment is paid at closing from your own savings, a documented gift, or an approved assistance program. It must be sourced and seasoned per lender guidelines — last-minute cash deposits trigger underwriter questions.

It sets your LTV

Loan-to-value (LTV) = loan amount ÷ home price. A larger down payment lowers LTV, which lowers your interest rate and lets you skip private mortgage insurance (PMI) once you're at or below 80% LTV on a conventional loan.

It's not just one number

Closing costs typically run another 2–6% of the purchase price. Add an emergency reserve (3–6 months of housing payments) and the actual cash you need at closing is meaningfully more than the headline down payment.

Program rules vary

Conventional starts at 3% down, FHA at 3.5%, VA and USDA at 0%, and jumbo at 10–20%. Each program has its own mortgage insurance, rate spread, and eligibility rules — the Loan Comparison tab puts them all on the same page.

Six Ways to Use This Calculator

Find your affordable price

Enter the cash you have plus your target down payment. The Affordable Home Price tab returns the maximum home price you can buy without dipping into reserves.

Solve for required down payment

Already have a home in mind? The Required Down Payment tab returns the cash needed at the desired down-payment percentage across all major programs.

Build a savings plan

The Savings Goal tab takes a target price, target date, and your current savings, then returns the monthly contribution required — with HYSA growth math built in.

Pick the cheapest program

The Loan Comparison tab side-by-sides conventional, FHA, VA, USDA, and jumbo on monthly payment, mortgage insurance, cash at close, and lifetime cost.

Stress-test down payment size

Use the Down Payment Scenarios table on the Home Price tab to see how 3% / 5% / 10% / 15% / 20% / 25% / 30% down would change monthly payment and lifetime interest.

Plan around PMI

The PMI Impact Analyzer shows monthly PMI, lifetime PMI cost, and the projected date PMI cancels automatically at 78% LTV under the Homeowners Protection Act.

Best Practices for Down Payment Planning

Don't empty your savings. Hold back at least 3–6 months of total housing expenses for emergencies — leaving zero reserves at closing is one of the top reasons first-year homeowners default.
Compare PMI costs before stretching for 20%. On a $400k loan, PMI at 0.65% adds about $216/mo — sometimes that's cheaper than waiting two more years to save and risk higher prices.
Layer in closing costs explicitly. Closing costs of 2–6% routinely surprise first-time buyers. Solve for them in the Affordable Home Price tab by checking the closing cost box.
Use a high-yield savings account. A 4–5% APY HYSA can add thousands to your down payment over a 36-month savings horizon. The Savings Goal tab models the growth.
Check program eligibility before stretching to 20%. A VA or USDA-eligible buyer rarely benefits from 20% down — those programs already eliminate monthly mortgage insurance.

Why Down Payment Size Matters

Larger down payment

Lower loan amount → lower monthly payment
Lower LTV → eligible for lower interest rate
20%+ on conventional → no PMI at all
Faster equity build and refinance options
Larger cushion against price declines

Smaller down payment

Buy sooner — capture appreciation and lock in housing cost
Keep cash for emergencies and renovations
Money invested at 8–10% may outperform mortgage interest saved
0% down programs (VA, USDA) avoid waiting years to save
Can refinance later to drop PMI without restarting term

Down Payment vs Closing Costs

People often lump "the cash needed" into a single number, but down payment and closing costs are two distinct buckets.

Down payment — applied to the property purchase price; reduces what you finance.
Closing costs — fees paid to lenders, title companies, recording offices, and tax/insurance escrow setup; typically 2–6% of the purchase price.

Closing costs can sometimes be negotiated with seller credits or rolled into the loan via a slightly higher rate. The Affordable Home Price tab's "Include Closing Costs" checkbox lets you see both scenarios.

Core Formulas

Affordable home price

Home price = Cash available ÷ (Down % + Closing %)

When both are percentages; solves directly from your budget.

Down payment amount

Down payment = Home price × Down %

The cash that goes against the purchase price.

Loan amount

Loan = Home price − Down payment + Financed fees

FHA UFMIP and VA funding fee are typically financed in.

Loan-to-value (LTV)

LTV = Loan amount ÷ Home price

< 80 → no PMI on conventional; > 90 FHA → MIP for loan life.

Monthly P&I

P = L × r ÷ (1 − (1 + r)⁻ⁿ)

L = loan, r = monthly rate, n = total months.

Monthly savings target

M = (Target − PV × (1+r)ⁿ) ÷ ((((1+r)ⁿ−1)/r))

Solves for the monthly contribution to hit your goal.

Common Down Payment Mistakes

Forgetting closing costs. A buyer with $40,000 in "down payment money" on a $300,000 home may discover at closing they need another $9,000–$18,000 for fees.
Stretching to 20% at any cost. Saving an extra 12 months to skip $200/mo PMI is often a worse trade than buying now — especially in an appreciating market.
Using emergency savings. Closing with $0 reserves is a one-job-loss-from-foreclosure scenario. Always keep 3–6 months of expenses outside your down payment.
Ignoring program-specific upfront fees. FHA charges 1.75% UFMIP; VA charges a 1.25–3.3% funding fee. Both are typically financed in but still grow the loan balance.
Sourcing the down payment wrong. Last-minute cash deposits, undisclosed gifts, or borrowed funds (other than approved DPA programs) can derail underwriting in the final week.

Trust & Methodology

This calculator uses the standard amortizing-payment formula, the official FHA UFMIP rate (1.75%), VA funding-fee schedule, and the Homeowners Protection Act's automatic PMI cancellation at 78% LTV. Conforming loan limits reflect FHFA's 2025 baseline of $806,500 for one-unit properties in most counties; jumbo financing applies above that line. DTI cutoffs follow each program's published guidelines (43% FHA back-end, 41% VA/USDA, up to 45% conventional with strong compensating factors).

Outputs are estimates. Real lender pricing varies by credit profile, DTI, loan-to-value, property type, occupancy, and current market conditions. For binding numbers, request a Loan Estimate (TILA-RESPA Integrated Disclosure form) from each lender within three business days of application.

Frequently Asked Questions

What is a down payment?

A down payment is the portion of a home's purchase price you pay in cash at closing, with the rest financed by a mortgage. It reduces the loan amount, sets your initial loan-to-value (LTV) ratio, and determines whether mortgage insurance applies. Down payments can come from personal savings, documented family gifts, sale of other assets, or approved down-payment-assistance (DPA) programs — but the source must be disclosed and seasoned per lender guidelines.

How much should I put down on a house?

The right number depends on your loan program, credit profile, market, and reserves. A 20% conventional down payment avoids PMI and unlocks the lender's best pricing. 5–10% is common for borrowers who want to buy sooner and accept temporary PMI. 3–3.5% (conventional or FHA) is fine for credit-strong first-time buyers in markets where waiting to save costs more in price appreciation than the PMI saves. 0% (VA, USDA) is generally the right call for eligible borrowers.

Is 20% required for a mortgage?

No. The 20% figure is the threshold at which conventional loans skip Private Mortgage Insurance — it's not a minimum to qualify. Conventional loans can start at 3% down (HomeReady, Home Possible), FHA at 3.5%, and VA/USDA at 0%. Below 20% on a conventional loan, you pay PMI; below 20% on an FHA loan, you pay MIP; both add to your monthly payment until canceled or refinanced.

What is PMI?

Private Mortgage Insurance protects the lender (not you) if you default on a conventional mortgage with less than 20% down. It typically costs 0.3%–1.5% of the loan amount per year, charged monthly. Under the Homeowners Protection Act, PMI cancels automatically when your loan balance reaches 78% of the home's original value, or earlier on request once you reach 80% LTV. PMI is one of the main reasons a 20% down payment is the conventional sweet spot.

How much are closing costs?

Closing costs typically run 2%–6% of the home's purchase price and include lender origination fees, discount points, title insurance and search, appraisal, recording fees, attorney fees in attorney-state closings, and prepaid items like the first year of homeowners insurance and a tax/insurance escrow cushion. On a $400,000 home, expect $8,000–$24,000 in closing costs depending on the state and lender. Some sellers cover a portion via concessions during negotiation.

Can I buy a house with 3% down?

Yes. Conventional loans like Fannie Mae's HomeReady and Freddie Mac's Home Possible allow 3% down for qualifying borrowers (typically first-time buyers within income limits). FHA loans allow 3.5% down with 580+ FICO. Both options require PMI/MIP until the loan reaches certain LTV thresholds. The tradeoff is a smaller cash outlay today against larger monthly payments and MI costs over the early years of the loan.

What is the minimum FHA down payment?

3.5% with a credit score of 580 or higher, or 10% if your score is between 500 and 579. Below 500 FICO, FHA will not insure the loan. Down payment funds can come from your own savings, a documented gift, or an approved DPA program. FHA also charges 1.75% UFMIP (financed into the loan) plus annual MIP — that's the cost of access to the low down payment.

How long should I save for a down payment?

Most first-time buyers reach a 5–10% down payment in 2–4 years of disciplined saving, and a 20% down payment in 4–7 years. The Savings Goal tab on this calculator turns your target price, target date, and current savings into a monthly contribution number — and shows how a high-yield savings account at 4–5% APY accelerates the timeline. Saving in a HYSA or short-duration bond fund is usually better than the stock market for any goal under three years out.

Should I use all my savings for a down payment?

No. Lenders look favorably on borrowers who hold reserves after closing — typically 2–6 months of housing payments depending on program and credit profile. From a personal finance standpoint, having 3–6 months of total expenses in an emergency fund after closing is the standard recommendation. Closing with $0 in the bank is one of the top reasons first-year homeowners fall behind on payments when unexpected expenses hit.

Does a larger down payment reduce interest costs?

Yes — significantly. A larger down payment reduces the loan amount, which directly reduces total interest paid over the life of the loan. It also lowers LTV, which often qualifies you for a lower interest rate and may eliminate PMI. On a $400,000 home with 7% interest over 30 years, putting 20% down instead of 10% reduces total lifetime interest by roughly $70,000–$90,000 and eliminates roughly $20,000–$30,000 in PMI. The tradeoff is the opportunity cost of the extra cash being tied up in home equity instead of invested elsewhere.