# Down Payment Calculator

Calculate your down payment amount and savings timeline for buying a home. See how different percentages affect your mortgage.

## What this calculates

Plan your path to homeownership by calculating the down payment you need and how long it will take to save. Compare different down payment percentages to find the right balance for your budget.

## Inputs

- **Target Home Price** ($) — min 0 — The price of the home you want to buy.
- **Down Payment Percentage** — options: 3% (conventional minimum), 3.5% (FHA minimum), 5%, 10%, 15%, 20% (no PMI required), 25% — What percentage of the home price to put down.
- **Current Savings** ($) — min 0 — How much you have already saved toward the down payment.
- **Monthly Savings Amount** ($) — min 0 — How much you can save each month toward the down payment.

## Outputs

- **Down Payment Amount** — formatted as currency — The total down payment needed.
- **Amount Still Needed** — formatted as currency — How much more you need to save.
- **Months to Save** — How long to reach your down payment goal.
- **Resulting Loan Amount** — formatted as currency — Home price minus down payment.

## Details

The down payment is the upfront cash you pay when purchasing a home, expressed as a percentage of the purchase price. The traditional benchmark is 20%, but many programs allow much smaller down payments.

Conventional loans can accept as little as 3% down, while FHA loans require 3.5%. VA and USDA loans may allow 0% down for eligible borrowers. However, putting down less than 20% typically requires Private Mortgage Insurance (PMI), which adds $50-200+ per month to your payment.

A larger down payment offers several benefits: lower monthly payments, less total interest over the life of the loan, no PMI requirement (at 20%+), stronger negotiating position, and more immediate home equity. On a $350,000 home, the difference between 3% ($10,500) and 20% ($70,000) is significant, but the 20% down payment saves approximately $150-200/month in PMI alone.

## Frequently Asked Questions

**Q: How much down payment do I need to buy a house?**

A: The minimum depends on your loan type: conventional loans require 3-5%, FHA loans require 3.5%, VA loans and USDA loans may require 0%. While 20% is not required, it eliminates the need for Private Mortgage Insurance (PMI) and results in lower monthly payments. First-time homebuyer programs in many states offer down payment assistance. The right amount depends on your savings, financial situation, and how quickly you want to buy.

**Q: What is PMI and how do I avoid it?**

A: Private Mortgage Insurance (PMI) is required when your down payment is less than 20% on a conventional loan. It protects the lender (not you) if you default. PMI typically costs 0.5-1% of the loan amount annually, or $50-200+ per month. To avoid PMI, put at least 20% down. You can also request PMI removal once your equity reaches 20% through payments or appreciation. FHA loans have their own mortgage insurance (MIP) that is harder to remove.

**Q: Should I use all my savings for a down payment?**

A: No. Keep a reserve of at least 3-6 months of expenses (including your new mortgage payment) as an emergency fund. You will also need cash for closing costs (2-5% of loan amount), moving expenses, and immediate home needs. A common mistake is draining all savings for the down payment, leaving no cushion for unexpected expenses. It may be worth putting less down if it means maintaining a healthy emergency fund.

**Q: What are closing costs in addition to the down payment?**

A: Closing costs typically range from 2-5% of the loan amount and are separate from the down payment. They include loan origination fees, appraisal, title insurance, attorney fees, prepaid taxes and insurance, and recording fees. On a $280,000 loan, expect $5,600-$14,000 in closing costs. Some of these can be negotiated or covered by the seller. Budget for both the down payment and closing costs when planning your home purchase.

**Q: Are there down payment assistance programs?**

A: Yes, many programs help first-time buyers with down payments. State housing finance agencies offer grants and low-interest loans. Some employers offer housing assistance. FHA, VA, and USDA loans have lower requirements. Some cities have programs for specific professions (teachers, first responders). Check your state's housing finance agency website and local nonprofits for available programs. Many have income and purchase price limits.

---

Source: https://vastcalc.com/calculators/finance/down-payment
Category: Finance
Last updated: 2026-04-21