Down Payment Calculator

See your down payment amount, loan size, PMI, closing costs, and how long to save. Results update instantly.

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PMI applies because the down payment is under 20%. PMI will be cancelled automatically when you reach 20% equity.
Down Payment
$70,000
20% of $350,000
Loan Amount
$280,000
Principal borrowed
Monthly Payment (P&I)
$1,831
Principal & interest only
PMI Estimate
None
Not required at 20%+
Closing Costs
$10,500
3% of purchase price
Total Cash Needed
$80,500
Down payment + closing costs
Savings Timeline
Already there!
Based on current savings and monthly savings rate

How to Plan Your Home Down Payment

Buying a home is one of the largest financial decisions most people make. The down payment — the portion of the home price you pay upfront — affects everything from your monthly payment to whether you pay PMI to how long it takes to build equity. This calculator breaks down every component so you can plan with confidence.

Minimum Down Payment by Loan Type

The amount you must put down depends on the type of mortgage you choose:

  • Conventional loan: As low as 3% for first-time buyers, 5% for repeat buyers. Requires PMI below 20%.
  • FHA loan: 3.5% minimum if your credit score is 580+, 10% if 500–579. FHA charges both upfront and annual mortgage insurance premiums (MIP).
  • VA loan: 0% for qualifying veterans and active-duty service members. No PMI required.
  • USDA loan: 0% for qualifying rural and suburban homes. Income limits apply. Requires a guarantee fee instead of PMI.
  • Jumbo loan: Typically 10–20% minimum. Requirements vary by lender since these exceed conforming loan limits.

What Is PMI and How Much Does It Cost?

Private Mortgage Insurance (PMI) protects the lender — not you — in the event of default. It is required on conventional loans whenever your down payment is less than 20%. PMI is typically priced as an annual premium of 0.5–1.5% of the loan amount, billed monthly. On a $280,000 loan, that works out to roughly $117–$350 per month.

This calculator uses a blended estimate of $50–$200 per month scaled to the loan amount and how far below 20% your down payment falls. The actual rate your lender charges will depend on your credit score, loan-to-value ratio, and the insurer they use. PMI is automatically cancelled under the Homeowners Protection Act once your equity reaches 20% based on the original purchase price, or you can request cancellation at 20% and have it removed by appraisal at 22%.

Understanding Closing Costs

Closing costs are fees paid on the day you close on the property. They are separate from your down payment and often surprise first-time buyers. Typical closing cost line items include:

  • Loan origination fee: 0.5–1% of the loan amount, charged by the lender for processing your application.
  • Appraisal: $400–$700. Required by the lender to verify the property is worth the purchase price.
  • Title insurance: Protects both the lender and you against title disputes. Lender's policy is usually required; owner's policy is optional but recommended.
  • Escrow and attorney fees: Varies by state and whether an attorney is required at closing.
  • Prepaid items: The first year of homeowners insurance, prepaid mortgage interest from the closing date to month-end, and an initial escrow deposit for property taxes and insurance.
  • Recording fees: Charged by the county to record the deed and mortgage in public records.

Total closing costs typically run 2–5% of the purchase price. On a $350,000 home that is $7,000–$17,500. Some lenders offer no-closing-cost or rolled-in-closing-cost options — these increase the loan amount or interest rate in exchange for lower upfront costs. Always compare the loan estimate (LE) from multiple lenders before committing.

Total Cash Needed to Close

The total cash you need on closing day is the sum of your down payment plus closing costs. For a $350,000 home with 20% down and 3% closing costs, that is $70,000 + $10,500 = $80,500. This figure is important because your pre-approval letter may show you qualify for the mortgage, but you still need that full closing-day amount in liquid savings or gift funds.

How Long Will It Take to Save?

The savings timeline section shows how many months it will take to accumulate the total cash needed (down payment plus closing costs) given your current savings balance and monthly savings rate. If you already have enough saved, it shows "Already there!" If your current savings exceed the target, no additional saving is needed.

To improve your savings timeline, consider:

  • Opening a high-yield savings account (HYSA) — rates of 4–5% can meaningfully accelerate savings growth.
  • Cutting discretionary expenses to increase your monthly savings rate.
  • Exploring down payment assistance programs (DPA) — many states and cities offer grants or low-interest second mortgages for first-time buyers.
  • Targeting a lower price point to reduce the down payment and closing cost targets.

20% vs. Less Than 20% — Which Is Better?

Putting 20% down eliminates PMI, reduces your monthly payment, and gives you immediate equity cushion against market fluctuations. However, it requires more time to save and may leave you with a thin emergency fund after closing. Many financial advisors recommend keeping 3–6 months of living expenses in reserve even after paying closing costs.

A smaller down payment gets you into a home sooner and preserves capital for home improvements, investments, or an emergency fund. The cost is the PMI premium and a higher monthly payment. In appreciating markets, buying earlier with a smaller down payment can sometimes outperform waiting to save 20% — but this depends heavily on local market conditions and your personal financial situation.

Tips for Buying Smarter

Before you start shopping, get pre-approved — not just pre-qualified. A pre-approval involves a hard credit check and gives sellers confidence in your offer. Compare at least three lenders; even a 0.25% difference in rate saves thousands over the life of the loan. Ask each lender for the loan estimate on the same day so you can compare apples to apples. And review your credit report at least six months before applying so you have time to dispute errors or pay down balances that could improve your score and your rate.

Frequently Asked Questions

The minimum down payment depends on the loan type. Conventional loans require as little as 3%, FHA loans require 3.5%, VA loans require 0%, and USDA loans require 0%. However, putting down less than 20% on a conventional loan triggers private mortgage insurance (PMI), which adds $50–$200 or more per month to your payment.
PMI (Private Mortgage Insurance) protects the lender if you default on the loan. It is required on conventional loans when your down payment is less than 20% of the home price. You can avoid PMI by putting down 20% or more, getting a piggyback loan (80/10/10), or choosing a VA or USDA loan if you qualify. PMI is automatically cancelled once you reach 20% equity.
Closing costs are fees paid at the time of purchase, including loan origination fees, appraisal, title insurance, attorney fees, prepaid interest, and property taxes. They typically run 2–5% of the purchase price. On a $350,000 home, expect $7,000–$17,500 in closing costs. Some lenders offer no-closing-cost loans that roll these fees into the mortgage rate.
Savings time depends on your target down payment, current savings balance, and how much you can save each month. For example, saving for a $70,000 down payment (20% on a $350,000 home) starting from $10,000 at $1,500/month takes about 40 months. This calculator shows your exact savings timeline using the fields for current savings and monthly savings rate.
Not necessarily. A 20% down payment eliminates PMI and lowers monthly payments, but tying up a large sum in home equity has opportunity cost. If you could invest that money and earn more than the PMI cost, a smaller down payment may make financial sense. Consider your interest rate, local market conditions, emergency fund needs, and investment alternatives before deciding.

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