For most first-time buyers, the down payment is the hardest part of buying a home. It is a large sum, and the goal keeps moving as prices change. This down payment calculator tells you how much you need, including closing costs, how long your current savings plan will take to get there while home prices rise, and what each down-payment level from 3% to 25% means for your loan and monthly payment.
How to use the down payment calculator
- Enter the home price you are aiming for and your down payment goal as a percentage.
- Add the share of the price to set aside for closing costs. 2% to 5% is typical.
- Enter what you have saved so far, how much you save each month and the interest your savings account pays.
- Enter the yearly home price growth you expect while you save.
- Under the loan section, enter a mortgage rate, term and PMI rate to compare monthly payments at each down-payment level.
How the savings timeline works
Each month your savings earn interest and receive a deposit:
At the same time the goal grows with home prices:
The answer is the first month in which savings meet the goal.
Worked example
You want a $350,000 home with 10% down plus 3% for closing costs. That is $45,500 at today’s price. You have $15,000, save $1,000 a month at 4% APY, and expect prices to rise 3% a year.
- You reach the goal in 2 years and 7 months. By then the home costs about $377,773 and the goal has grown to $49,110.
- Down payment: $37,777, leaving a $339,996 loan.
- At 6.5% for 30 years: $2,149.01 principal and interest + $141.66 PMI = $2,290.67 a month, before taxes and insurance.
- To reach the goal in two years instead, you would need to save about $1,286 a month.
Down payment levels compared
Same saver and assumptions; prices keep rising while you save:
| Down | Cash needed incl. closing | Payment (P&I + PMI) | Time to save |
|---|---|---|---|
| 3% | $21,313 | $2,321 | 6 months |
| 3.5% (FHA minimum) | $23,203 | $2,321 | 8 months |
| 5% | $28,982 | $2,319 | 1 year, 2 months |
| 10% | $49,110 | $2,291 | 2 years, 7 months |
| 20% (no PMI) | $95,414 | $2,098 | 5 years, 9 months |
The monthly difference between 3% and 10% down is small here, because the home costs more by the time the larger down payment is saved. Reaching 20% removes PMI and cuts the payment by about $200, but it takes more than five extra years.
Where down payment money can come from
- High-yield savings or Treasury bills for money you will need within a few years. Stocks are risky over short horizons.
- Gift funds from family. Lenders require a gift letter, and rules differ by loan type.
- Down payment assistance grants and second loans from state and local housing finance agencies.
- Retirement accounts are a last resort. First-time buyers can take up to $10,000 from an IRA without the 10% additional tax, but income tax still applies, and the money stops growing for retirement.
Next steps: estimate the up-front fees with the closing costs calculator, compare FHA terms in the FHA loan calculator, and check what your income supports with the house affordability calculator.
Estimates only, not financial advice. Loan programs, PMI pricing and minimum down payments depend on your credit, the lender and the property.
Frequently asked questions
How much do I need for a down payment?
It depends on the loan. Many conventional loans allow 3% down, FHA loans require 3.5% with a credit score of 580 or higher, and VA and USDA loans can require nothing. Putting down 20% avoids private mortgage insurance on a conventional loan. Plan for closing costs of roughly 2% to 5% on top.
How long will it take to save for a down payment?
Saving $1,000 a month at 4% APY from a $15,000 start, 10% down plus 3% closing costs on a $350,000 home takes about 2 years and 7 months. That allows for prices rising 3% a year while you save. The same plan reaches 3.5% down in about 8 months.
Is it better to wait until I have 20% down?
Not always. Waiting avoids PMI and lowers the payment. But while you save, prices and rent keep rising and you build no home equity. In the default example, saving 20% takes almost six years longer than saving 3.5%. Compare the PMI cost against what waiting costs you.
Why does my goal keep growing?
The down payment is a percentage of the price, so when home prices rise, the dollar goal rises with them. At 3% a year, a $45,500 goal today becomes about $49,110 after 31 months. The calculator tracks this moving target month by month.