Down payment calculator

How much cash you need to buy, from 3% down to 20%, how many months it takes to save it, and what each choice does to PMI and your monthly payment.

By Raimundo Coelho · Updated

Your plan

Move
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Down payment
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Loan type

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$
$
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High-yield accounts paid about 3.5–4.4% in Oct. 2026; the average savings account, 0.38%.

%

0 keeps the price fixed. U.S. prices rose 2.4% in the last year (FHFA).

Payment assumptions
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%
$

Rate: Freddie Mac weekly survey, October 29, 2026. FHA premiums follow HUD: 1.75% up front, added to the loan, and 0.50–0.55% a year.

Cash you need

$52,000

$40,000 down + $12,000 closing

Time to save

2y 10m

34 months

Savings so far compared with the cash you need 29%

You have 29% of it

Monthly payment

30-year fixed
  • Principal and interest$360,000 at 7.24%$2,453.39
  • PMIEnds after payment 118$150.00
  • Property tax and insurance$496.67
Total a month $3,100.06

Cash to close

Your savings goal
    Still to save $37,000

    Keep moving costs and an emergency fund separate from this goal. Itemize closing costs with the closing cost calculator.

    3% to 20% down, side by side

    Same price, savings and rate. Tap a row to use it.
    DownCash neededMonthlyTime to save

    How the calculator works out your savings goal

    The down payment is only part of the cash you bring to closing. Lenders also want closing costs paid, and most buyers want a cushion left over. Here is the math with the calculator's starting values: a $400,000 home, 10% down on a conventional loan, 3% closing costs, $15,000 already saved, $1,000 a month added, and a savings account paying 3.75% APY.

    1. 1

      Down payment

      $400,000 × 10% = $40,000. The loan is the rest: $360,000.

    2. 2

      Add closing costs

      $400,000 × 3% = $12,000. Your goal is $52,000, and you still need $37,000.

    3. 3

      Grow the savings month by month

      A 3.75% APY is about 0.307% a month. Each month the balance earns that much, then your $1,000 goes in. The time to reach a goal G from a balance B with deposits D at monthly rate i is n = ln((G × i + D) ÷ (B × i + D)) ÷ ln(1 + i).

    4. 4

      Round up to whole months

      The formula gives 33.6, so 34 months, or 2 years and 10 months. By then you have deposited $49,000 and earned about $3,430 in interest. In a 0.38% account it would take 37 months.

    5. 5

      Price the loan

      $360,000 at 7.24% for 30 years is $2,453.39 a month in principal and interest. PMI at 0.50% adds $150, and the U.S. average property tax and $2,400 of insurance add $496.67, for $3,100.06 a month, the same figure as our mortgage calculator.

    Prices can move while you save. Set "Home prices rise" to 3% and the $52,000 goal becomes about $57,200 by the time you reach it, which takes 39 months instead of 34. The calculator applies the same growth to the down payment and the closing costs.

    Minimum down payment by loan type

    LoanMinimum downMortgage insurance
    Conventional3% for eligible buyers (often first-time buyers or income-limited programs); 5% is common otherwisePMI below 20% down; can be canceled at 80% and ends at 78%
    FHA3.5% with a 580+ credit score; 10% from 500 to 5791.75% up front plus 0.50–0.55% a year; for life with under 10% down, 11 years with 10% or more
    VA0% for eligible service members and veteransNone monthly; a one-time funding fee unless exempt
    USDA0% in eligible rural areas, with income limitsUp-front and annual guarantee fees
    JumboOften 10% to 20%, set by each lenderVaries

    Low down payments are common. The National Association of Realtors' 2025 buyer survey put the median down payment at 10% for first-time buyers and 23% for repeat buyers, many of whom roll over equity from a home they sold.

    What each choice costs on a $400,000 home

    Calculator defaults: 7.24% for 30 years, 3% closing costs, PMI at 0.50% of the loan, U.S. average tax and $2,400 insurance, starting from $15,000 saved plus $1,000 a month at 3.75%.

    DownCash neededMonthly, and mortgage insurance paidMonths to save
    3%$24,000$3,302.55$24,897 PMI9
    3.5% FHA$26,000$3,350.20$63,690 MIP, plus $6,755 up front11
    5%$32,000$3,244.69$22,958 PMI16
    10%$52,000$3,100.06$17,700 PMI34
    20%$92,000$2,677.46None67

    PMI totals run until the scheduled balance reaches 78% of the price, the automatic cutoff under the Homeowners Protection Act; you can ask to cancel it earlier at 80%. FHA's annual premium stays for the life of the loan when you put down less than 10%, which is why its total is so much larger, though many FHA borrowers later refinance into a conventional loan to drop it. The FHA payment here uses the same rate as the conventional loans; real FHA rates are often a bit lower.

    20% down or buy sooner?

    The table shows the trade-off. Going from 10% to 20% down cuts the payment by about $423 a month and avoids $17,700 of PMI, but it takes 33 more months to save in this example, and longer if prices climb: at 3% a year, the 20% goal grows to about $112,900 and takes 83 months. During that time you keep paying rent.

    Neither choice is right for everyone. A smaller down payment can make sense when rent is high, prices in your area are rising, and you can still keep an emergency fund after closing. A larger one makes sense when you want the lowest payment, plan to stay put, or your debt-to-income ratio is tight. Our rent vs. buy calculator and affordability calculator help with both sides.

    Where to keep the money while you save

    Money you plan to spend within a few years should not swing with the stock market. A drop of 20% the year before you buy can push your plans back by years. Common choices are:

    • High-yield savings or money market accounts at FDIC- or NCUA-insured institutions. Rates are variable; top online accounts paid about 4.4% in October 2026, while the FDIC's national average for savings was 0.38%.
    • CDs or Treasury bills timed to mature when you plan to buy. They can lock a rate, with a penalty or price risk if you need the money early.
    • Keep a paper trail. Lenders ask for two or more months of statements and question large deposits. Move money early and document gifts.

    Interest on savings is taxable income. A gift from a relative is allowed by most loan programs with a signed gift letter showing it does not need to be repaid.

    Down payment assistance

    State housing finance agencies, cities, counties and nonprofits run down payment assistance programs. They usually come as a grant, a forgivable second loan that disappears if you stay a set number of years, or a deferred loan you repay when you sell or refinance. Most have income and price limits, require a homebuyer education class, and work only with participating lenders. Funding is limited and rules change, so check each program's current terms and how it affects your total loan cost.

    HUD lists homebuying programs by state, and the CFPB explains where to look for first-time buyer programs. A HUD-approved housing counselor can review your budget and help you compare offers, often at no cost.

    Common mistakes

    • Saving only for the down payment. Closing costs often add 2% to 5% of the price, and the lender may want reserves left over.
    • Emptying the emergency fund. New homes come with surprises. Keep several months of expenses after closing.
    • Opening new credit before closing. A car loan or new card can change your debt-to-income ratio and score mid-process.
    • Ignoring the payment. A low down payment is only a good deal if the monthly cost fits your budget.

    This calculator is an educational estimate. It is not an offer of credit, a pre-approval or financial advice, and it does not promise you will qualify for any loan or program. Talk with a licensed lender or a HUD-approved housing counselor about your situation.

    Common questions

    How much down payment do I need for a $400,000 house?

    It ranges from $12,000 at 3% down on a conventional loan, or $14,000 at 3.5% with FHA, to $80,000 at 20% down. Closing costs come on top, often 2% to 5% of the price, so with 10% down and 3% closing costs you need about $52,000 in cash.

    Do you really need 20% down to buy a house?

    No. Conventional loans start at 3% down for eligible buyers, FHA at 3.5% with a credit score of 580 or higher, and VA and USDA loans can require nothing down. Putting down 20% avoids private mortgage insurance on a conventional loan and lowers the payment, but it is not a requirement.

    What is the average down payment for a first-time buyer?

    The National Association of Realtors' 2025 Profile of Home Buyers and Sellers put the median down payment at 10% for first-time buyers and 23% for repeat buyers, based on purchases from July 2024 to June 2025.

    Is it better to put 20% down or keep the cash?

    It depends on your savings and plans. A bigger down payment lowers the payment and avoids PMI, but a home with no cash cushion is risky. Many buyers put down less and keep several months of expenses in reserve, then cancel PMI once the balance reaches 80% of the original value.

    Where should I keep my down payment savings?

    Somewhere safe and easy to reach, such as an FDIC- or NCUA-insured high-yield savings account, a money market account or short CDs timed to your purchase. Stocks can drop sharply in the few years you are saving. Interest is taxable income.

    Can I get help with my down payment?

    Possibly. State housing finance agencies, cities, counties and nonprofits run down payment assistance programs, often as grants or forgivable or deferred second loans, usually with income limits and a homebuyer class. HUD lists programs by state, and a HUD-approved housing counselor can help you find and compare them.

    Sources and assumptions