Down Payment Calculator

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.

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Down Payment Calculator calculator

home Home & Savings Plan

$
0%3.5% FHA10%20% No PMI50%
$
$
%

2026 high-yield savings avg ~4-5% APY

savings Your Down Payment Plan

Target Down Payment
$80,000
Reach by —
Gap to Save
$55,000
Months
34
Loan Amount $320,000
Est. Monthly PMI $0
Loan Type Comparison
Type Min % Down $ PMI/mo
Interpretation
Enter values to see your plan.

tips_and_updates 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

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.

The Formula

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).

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

lightbulb Variables Explained

  • 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)

tips_and_updates Pro Tips

1

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

2

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

3

VA loans offer 0% down for eligible veterans and active military with no PMI — one of the best mortgage deals available

4

USDA loans offer 0% down in eligible rural and suburban areas with income limits and a small funding fee

5

Jumbo loans (above the conforming limit, ~$766,550 in 2026) typically require 10-20% down and stronger credit than conventional loans

6

Park your down payment savings in a high-yield savings account (4-5% APY in 2026) — not checking — so compounding accelerates your goal

7

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

8

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

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, and 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), and redirect one large recurring expense — paid-off car, a cheaper rental — directly into savings.

Frequently Asked Questions

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All formulas verified against official standards.

Consumer Financial Protection Bureau - Down Payments open_in_new HUD - FHA Loan Requirements open_in_new VA Home Loan Benefits open_in_new