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Down Payment Calculator

Find out how much down payment you need, how long it will take to save it, and how your monthly payment changes at every down payment level — for all major loan types.

Home & Down Payment

Home Price ($)

Target Down Payment (%)

Current Savings ($)

Savings Plan

Monthly Savings Amount ($)

Ann. Savings Rate (%)

Mortgage Details

Mortgage Rate (%)

Loan Term (years)

How to Use

1Enter your target home price, the down payment percentage you want to save, and your current savings balance — the calculator shows exactly how much more you need.
2Enter how much you can save each month and your savings account interest rate — even a 2.5% HYSA rate meaningfully shortens your timeline.
3Enter your expected mortgage rate to see how your monthly payment changes across every down payment level from 3% to 25%.
4Review the loan type table to compare minimum down payment requirements for Conventional, FHA, VA, and USDA loans side by side.

Example Calculation

Inputs

Savings Goal (verified)

Down Payment Goal: $70,000.00

Current Savings: $15,000.00

Amount Still Needed: $55,000.00

Months to Goal: 94 months (7.83 years)

Interest Earned: $8,099.49

Without Interest: 110 months

Interest Saves You: 16 months

Monthly Payment Comparison (verified)

3% down ($10,500): P&I $2,258.70 + PMI $240.48 = $2,499.18

5% down ($17,500): P&I $2,212.13 + PMI $235.52 = $2,447.65

10% down ($35,000): P&I $2,095.70 + PMI $223.12 = $2,318.83

15% down ($52,500): P&I $1,979.27 + PMI $210.73 = $2,190.00

20% down ($70,000): P&I $1,862.85 + PMI $0.00 = $1,862.85

25% down ($87,500): P&I $1,746.42 + PMI $0.00 = $1,746.42

Savings Timeline (annual)

Year 1: $21,448.56 (30.64% of goal)

Year 2: $28,060.19 (40.09% of goal)

Year 3: $34,839.02 (49.77% of goal)

Year 4: $41,789.27 (59.70% of goal)

Year 5: $48,915.29 (69.88% of goal)

Year 8 (goal): $70,099.49 ✅ (100.14% — goal reached!)

"Saving in a high-yield savings account at 2.5% earns $8,099.49 in interest over 94 months — cutting 16 months off your savings timeline compared to keeping money in a zero-interest account."

Frequently Asked Questions

Q1: How much down payment do I really need to buy a house?

A1: The minimum down payment depends on your loan type. Conventional loans allow as little as 3%, FHA loans require 3.5% with a 580+ credit score, and VA and USDA loans require 0% for eligible borrowers. On a $350,000 home, that ranges from $0 to $12,250 to get in the door. However, putting down less than 20% on a conventional loan requires PMI — $240.48 per month at 3% down on a $350,000 home — which significantly raises your monthly cost.

Q2: How much does PMI cost and when does it end?

A2: PMI (Private Mortgage Insurance) on a conventional loan typically costs 0.85% of the loan amount annually. On a $350,000 home with 3% down, that is $240.48 per month. PMI automatically cancels when your loan balance reaches 80% of the original home value — you can also request removal at 80% LTV. The monthly savings from eliminating PMI is substantial: going from 3% to 20% down on this example saves $636.33 per month ($2,499.18 vs $1,862.85).

Q3: Is it better to put 20% down or invest the extra cash?

A3: Putting 20% down eliminates PMI ($240.48/month on this example) and lowers your monthly payment by $636.33 vs 3% down. However, the opportunity cost of tying up the extra $59,500 in home equity instead of investing it matters. If you can earn more than your mortgage rate (7.0%) by investing, keeping the smaller down payment and investing the difference may generate better long-term returns — but this involves market risk that home equity does not.

Q4: How does savings account interest shorten my timeline?

A4: At 2.5% annual interest on your savings, the $55,000 needed grows faster than simple accumulation. Over 94 months, compound interest earns $8,099.49 — essentially 16 extra months of savings. Without any interest, reaching $70,000 from $15,000 at $500/month would take 110 months. Even a modest HYSA rate makes a meaningful difference over a multi-year savings period.

Q5: What is the best down payment amount to aim for?

A5: The answer depends on your financial situation. The most common recommendations are: (1) 20% to avoid PMI entirely and get the lowest monthly payment; (2) 10% if you want to put more down than the FHA minimum while keeping some cash reserves; (3) 3-3.5% if you want to buy sooner and can handle the PMI cost. For a $350,000 home, the difference between 3% ($2,499.18/month) and 20% ($1,862.85/month) is $636.33 per month — worth carefully considering against how long it takes to save the extra $59,500.