# Down Payment Calculator

> Free down payment calculator for a house. See target amount, savings gap, months to save, PMI threshold, and compare conventional, FHA, VA, USDA, and jumbo.

**URL:** https://calculators.im/down-payment-calculator  
**Category:** financial  
**Last updated:** 2026-07-03  

Use our free down payment calculator to plan how much to save for a house. Enter the home price, target down payment percent, current savings, and monthly savings — we show the target amount, gap to save, months needed, target date, PMI impact, and a full loan-type comparison (conventional, FHA, VA, USDA, jumbo).

Coming up with a down payment is the single biggest hurdle for most first-time home buyers. Our down payment calculator breaks the goal into a clear savings plan: enter the home price you are targeting, a down payment percentage (20% to avoid PMI is the classic benchmark, but 3-5% conventional and 3.5% FHA options exist), your current savings, what you can set aside each month, and the interest rate on your high-yield savings account. We compute the target dollar amount, the gap between your current savings and that goal, how many months of compound-interest savings get you there, and the exact target date. Side-by-side we show the minimum down payment and monthly PMI estimate for every major loan type — Conventional 3-5% (with PMI under 20%), FHA 3.5% (MIP for life of loan), VA 0% for military, USDA 0% for rural, and Jumbo 10-20% — so you can choose the path that fits your timeline and credit profile.

## Formula

```
Target = Price × DP%   |   Gap = Target − Current   |   Months = solve[Current × (1+r)^n + Monthly × ((1+r)^n − 1)/r = Target]
```

**Variables:**

- **Price** — Target home purchase price
- **DP%** — Target down payment percentage (20% avoids PMI)
- **Target** — Dollar amount needed for the down payment
- **Current** — Current savings balance earmarked for the down payment
- **Monthly** — Amount you add to the savings each month
- **r** — Monthly savings interest rate = APY / 12 / 100
- **n** — Number of months until you reach the target
- **Gap** — Dollar amount still to save (Target − Current)

Target down payment = price × percent. Gap = target − current. If the savings rate is 0, months to save = gap / monthly. If the savings rate is positive, months come from the future-value-of-annuity formula and are solved by inverting: n = ln((Target × r + Monthly) / (Current × r + Monthly)) / ln(1 + r).

## Worked Example

### Example: $400,000 house, 20% target, $25,000 saved, $1,500/month at 4% APY

Target = $400,000 × 20% = $80,000. Gap = $80,000 − $25,000 = $55,000. With monthly rate r = 0.04/12 = 0.00333, solving the annuity equation gives n ≈ 34 months, landing near February 2029.

## How to Use the Down Payment Calculator

1. **Enter the home price** — Use the realistic price in your target market.
2. **Pick a target down payment percent** — 20% avoids PMI; 3-5% conventional or 3.5% FHA lowers the upfront cost.
3. **Enter current savings and monthly contribution** — The calculator solves for how many months until you reach the goal.
4. **Set your savings APY** — High-yield savings accounts pay 4-5% APY in 2026 — that compounds meaningfully over 2-4 years.
5. **Compare loan types** — See minimum down, loan amount, and monthly PMI estimates for conventional, FHA, VA, USDA, and jumbo loans.

## Pro Tips

- 20% down avoids PMI on a conventional loan and typically qualifies you for the best interest rates — but do not drain your emergency fund to get there
- FHA loans allow 3.5% down with a 580+ credit score, but MIP (mortgage insurance) lasts the life of the loan unless you refinance into a conventional loan later
- VA loans offer 0% down for eligible veterans and active military with no PMI — one of the best mortgage deals available
- USDA loans offer 0% down in eligible rural and suburban areas with income limits and a small funding fee
- Jumbo loans (above the conforming limit, ~$766,550 in 2026) typically require 10-20% down and stronger credit than conventional loans
- Park your down payment savings in a high-yield savings account (4-5% APY in 2026) — not checking — so compounding accelerates your goal
- Closing costs run 2-5% of the home price on top of the down payment — budget an extra $8,000-$20,000 on a $400,000 home
- Down payment assistance programs (state housing finance agencies, employer grants, FHA gift funds from family) can cover part or all of the down payment for eligible buyers

## Frequently Asked Questions

### How much down payment do I need for a $300k house?

On a $300,000 home, 20% down is $60,000 (avoids PMI), 10% is $30,000, 5% conventional is $15,000, and 3.5% FHA is $10,500. VA and USDA loans allow $0 down for eligible borrowers. Most first-time buyers put down 6-8% on average — our down payment calculator shows the exact target and how long it takes to save at your contribution rate.

### Is 20% down really required to buy a house?

No. 20% is the threshold to avoid private mortgage insurance (PMI) on a conventional loan, but almost every major loan program allows less. Conventional loans accept 3-5%, FHA requires 3.5% with a 580 credit score, VA and USDA allow 0% for eligible borrowers, and jumbo loans typically need 10-20%. The median first-time buyer down payment in the US is closer to 6-8%, not 20%.

### How long does it take to save a 20% down payment?

It depends on the home price and your monthly savings. On a $400,000 home, 20% is $80,000 — saving $1,500/month at 4% APY gets there in about 34 months (just under 3 years) starting from $25,000. Saving $1,000/month takes closer to 4.5 years. Use our down payment calculator to plug in your exact numbers and get a target date.

### What is PMI and how much does it cost?

Private mortgage insurance (PMI) is required on conventional loans when the down payment is under 20%. It typically costs 0.3-1.5% of the loan amount per year, or roughly $30-$125/month per $100,000 borrowed. On a $320,000 loan (10% down on a $400,000 home), expect about $130-$250/month in PMI until you reach 20% equity. PMI can be cancelled once your loan balance drops below 80% of the home's value.

### What is the minimum down payment for an FHA loan?

FHA loans require 3.5% down with a credit score of 580 or higher, or 10% down if your score is 500-579. On a $300,000 home, that's $10,500 with good credit or $30,000 with weaker credit. FHA loans also charge an upfront MIP of 1.75% of the loan plus an annual MIP of 0.15-0.75% — and unlike conventional PMI, MIP typically lasts the life of the loan unless you refinance.

### How much down payment is needed for a $500k house?

On a $500,000 home, 20% is $100,000, 10% is $50,000, 5% conventional is $25,000, and 3.5% FHA is $17,500. A jumbo loan (if you are above the conforming limit in your area) typically requires 10-20% or $50,000-$100,000. VA buyers can put 0% down. Remember to add 2-5% for closing costs — another $10,000-$25,000 — when planning your total cash-to-close.

### How can I save for a down payment faster?

Five high-impact tactics: (1) move the savings to a 4-5% APY high-yield savings account, (2) automate transfers on payday so you save before spending, (3) cut one major recurring cost (rent via roommate, car payoff) and redirect it, (4) check state and local down payment assistance programs — many offer $5,000-$25,000 grants, (5) ask family about gift funds, which are allowed on conventional and FHA loans with a simple gift letter.

### Does the down payment calculator include closing costs?

The main calculation focuses on the down payment itself, but closing costs typically add another 2-5% of the home price — so on a $400,000 house, budget $8,000-$20,000 on top of the down payment. Add closing costs to your savings goal to avoid surprises at the closing table. Some loan programs allow seller concessions or rolled-in closing costs to reduce cash-to-close.

## Deep Dive

The down payment is typically the largest single expense in buying a home and the biggest barrier for first-time buyers. While the traditional benchmark is 20% of the purchase price — $80,000 on a $400,000 home — many loan programs allow significantly less. FHA loans require as little as 3.5% down, conventional loans through Fannie Mae and Freddie Mac can go as low as 3%, and VA and USDA loans offer zero-down options for eligible borrowers. However, putting down less than 20% on a conventional loan triggers private mortgage insurance (PMI), which typically costs 0.5% to 1.5% of the loan amount annually and adds $100 to $300 per month to your payment. The down payment amount also directly affects your monthly mortgage payment, total interest paid over the life of the loan, and your starting equity position. This down payment calculator helps you explore different scenarios by computing the required savings amount, estimating monthly mortgage payments at various down payment levels, showing PMI costs when applicable, and projecting a savings timeline based on your current monthly contributions. Use it to find the right balance between down payment size and remaining liquid savings.

### How much down payment do you really need?

**The 20% down rule is a myth** for most modern loans:

- **Conventional loans** go as low as 3% for first-time buyers
- **FHA** requires 3.5% with fair credit
- **VA and USDA loans** offer 0% down for eligible borrowers
- Only **jumbo loans** typically demand 10-20%

The median first-time US home buyer puts down 6-8%, not 20%.

The trade-off is **private mortgage insurance (PMI)** — required when you put less than 20% down on a conventional loan — which adds $30-$125/month per $100,000 borrowed.

Our down payment calculator shows the exact PMI cost at your chosen percentage so you can weigh waiting longer to save 20% vs. buying sooner and paying PMI until you reach 80% loan-to-value.

### Building a realistic down payment savings plan

A **$400,000 home with 20% down** means $80,000 in cash plus another $8,000-$20,000 in closing costs.

Saving $1,500/month in a 4% APY high-yield account reaches $80,000 in roughly 34 months starting from $25,000 — **compound interest** alone adds about $4,000 over that window. Bumping the monthly contribution to $2,000 cuts the timeline to about 26 months.

**Accelerators that matter:**

- automate transfers on payday
- check state housing finance agency assistance programs (many offer $5,000-$25,000 grants to first-time buyers)
- ask family about documented gift funds (allowed on conventional and FHA loans)
- redirect one large recurring expense — paid-off car, a cheaper rental — directly into savings

### How to Calculate Your Down Payment and Savings Timeline

Your target down payment is simply **Home Price × Down Payment %**, and the gap is that target minus what you've already saved.

For a $400,000 home at 20%, the target is $80,000; with $25,000 saved, the gap is $55,000.

To find the timeline, divide the gap by your monthly contribution, then let **compound interest** from a high-yield savings account shorten it slightly. Saving $1,500 a month at 4% APY closes a $55,000 gap in about **34 months**.

The calculator solves this annuity math for you and returns an **exact target date** so you can plan a realistic purchase window.

### Down Payment by Loan Type: Conventional, FHA, VA, USDA, Jumbo

Minimum down payments vary widely by program:

- **Conventional loans** — via Fannie Mae's HomeReady and Freddie Mac's Home Possible — go as low as 3% for first-time buyers (5% is common)
- **FHA** requires 3.5% with a 580+ credit score
- **Jumbo loans** above the conforming limit typically demand 10-20%
- **VA loans** for eligible veterans and active military, and **USDA loans** in qualifying rural areas, allow 0% down

Each path has trade-offs in mortgage insurance, credit requirements, and property eligibility.

The right choice balances how much cash you have now against the ongoing cost of insurance and the rate you'll qualify for — compare them side by side before committing.

### PMI: The Cost of Putting Less Than 20% Down

Put less than 20% down on a conventional loan and you'll pay **private mortgage insurance (PMI)**, which protects the lender, not you.

According to **the CFPB**, PMI typically runs 0.3-1.5% of the loan per year — roughly $30-$125 a month per $100,000 borrowed — until your loan balance falls below 80% of the home's value, at which point it can be cancelled. On a $360,000 loan that's often $130-$250 a month.

**FHA loans** charge a similar MIP that usually lasts the life of the loan.

Factor PMI into the true monthly cost when weighing a smaller down payment against waiting to save more.

### 20% Down vs Buying Sooner with PMI

**The classic dilemma:**

- keep saving to reach 20% and avoid PMI
- buy sooner with a smaller down payment and pay PMI for a while

There's no universal answer.

**Buying sooner** means starting to build equity and locking in today's price, but you'll pay PMI and likely a slightly higher rate until you hit 20% equity. **Waiting** avoids PMI but risks rising prices and rates eroding the savings.

In appreciating markets, buying sooner with PMI often wins; in flat markets, saving the full 20% can be cheaper. Model both with the calculator before deciding.

### Down Payment for a $300k, $400k, and $500k House

Concrete numbers help:

- **On a $300,000 home:** 20% is $60,000, 10% is $30,000, 5% is $15,000, and 3.5% FHA is $10,500
- **On a $400,000 home** those become $80,000, $40,000, $20,000, and $14,000
- **On a $500,000 home:** $100,000, $50,000, $25,000, and $17,500

**VA and USDA buyers** can put $0 down at any price.

Remember to add closing costs of 2-5% on top — another $6,000-$25,000 depending on price — so your total cash-to-close is always more than the down payment alone.

### Down Payment Assistance Programs and Gift Funds

**You may not need to save the entire down payment yourself.**

Most US states run **housing finance agency (HFA)** programs offering $5,000-$25,000 in grants or low-interest second loans to first-time and moderate-income buyers.

**Employer assistance**, **municipal programs**, and **FHA-approved gift funds** from family (documented with a simple gift letter) can all cover part or all of the down payment on conventional and FHA loans.

Eligibility usually hinges on:

- income limits
- buyer education courses
- purchase-price caps

Check your state HFA and local programs early — assistance can shave years off your savings timeline.

### Where to Keep Your Down Payment Savings

Because a down payment is needed within a few years, keep it **safe and liquid**, not invested in stocks where a downturn could hit right before you buy.

A **high-yield savings account** (4-5% APY in 2026), **money market account**, or short-term **certificates of deposit (CDs)** are the standard homes for down payment cash.

On an $80,000 goal, the difference between a 0.5% checking account and a 4.5% high-yield account is thousands of dollars over a few years of saving.

Automate transfers on payday so the money is set aside before you're tempted to spend it.

### Closing Costs: The Cash Beyond the Down Payment

**The down payment isn't the only cash you need at closing.**

**Closing costs** — loan origination, appraisal, title insurance, escrow, prepaid taxes and insurance — typically add 2-5% of the home price. On a $400,000 home that's another $8,000-$20,000 on top of the down payment.

Many first-time buyers focus only on the down payment and get blindsided by **cash-to-close**.

Budget for both, and explore ways to reduce the burden:

- seller concessions
- lender credits in exchange for a slightly higher rate
- rolling some costs into the loan where the program allows

### How Down Payment Size Affects Your Mortgage

Your down payment ripples through the entire loan.

**A larger down payment** means:

- a smaller loan
- a lower monthly payment
- less total interest
- more starting equity — and at 20% it eliminates PMI and often earns a better rate

**A smaller down payment** preserves cash and emergency reserves but raises the payment, adds PMI, and increases lifetime interest.

The right size balances getting into a home against keeping a safety cushion versus the long-run cost of a bigger loan.

Don't drain your emergency fund to reach 20%; a **10-15% down payment** with reserves intact is often the wiser choice.

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- [mortgage-affordability-calculator](https://calculators.im/mortgage-affordability-calculator)
- [closing-cost-calculator](https://calculators.im/closing-cost-calculator)
- [rent-vs-buy-calculator](https://calculators.im/rent-vs-buy-calculator)
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## Authoritative Sources

- [Consumer Financial Protection Bureau - Down Payments](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-your-down-payment/) — Official CFPB guide to down payments and mortgage insurance
- [HUD - FHA Loan Requirements](https://www.hud.gov/buying/loans) — FHA down payment and mortgage insurance requirements
- [VA Home Loan Benefits](https://www.va.gov/housing-assistance/home-loans/) — Official VA guide to 0% down home loans for veterans
- [Fannie Mae - HomeReady (3% Down)](https://www.fanniemae.com/) — Low-down-payment conventional loan program
- [Freddie Mac - Home Possible (3% Down)](https://www.freddiemac.com/) — Low-down-payment conventional loan program

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