🏡 Down Payment Savings Calculator
A down payment calculator for the cash you actually need — down payment plus closing costs — whether PMI applies, and what it does to the monthly payment.
What Down Payment Savings Calculator Does
The down payment decides three things at once: how much you need in cash before you can buy, whether you pay mortgage insurance, and what your monthly payment will be. Those pull in different directions, which is why "how much should I put down" has no single answer.
Twenty percent is treated as the standard, but it is not a requirement — it is the threshold at which private mortgage insurance stops being charged on a conventional loan. Below it you can still buy, and most first-time buyers do; you simply pay PMI until you build enough equity.
This calculator works out the cash you need, how long it takes to save at your current rate, and whether your target clears the PMI threshold. The tables below cover the actual minimums by loan program, which is what most people are really asking.
How to Use Down Payment Savings Calculator
- Enter your target home purchase price
- Select your down payment percentage (3.5%, 5%, 10%, 20%)
- Input your current cash savings and planned monthly deposit
- Set closing costs as a percentage, plus the mortgage rate and PMI rate you expect
- View the total cash needed at closing, the timeline to save it, and what that down payment does to the monthly payment
Formula Used by Down Payment Savings Calculator
Down payment and loan amount
down = price × percentage loan = price − down
- percentage
- Your chosen down payment share, subject to the program minimum
Worked example
A $400,000 home at the FHA minimum of 3.5%.
- Down: 400,000 × 0.035 = 14,000
- Loan: 400,000 − 14,000 = 386,000
Result: $14,000 down. At 20% the same home needs $80,000 — a $66,000 difference in cash required.
Time to save the deposit
months = ln( (target × r + M) ÷ (current × r + M) ) ÷ ln(1 + r)
- M
- Monthly amount saved
- r
- Monthly interest on savings: APY ÷ 12
- current
- What you have already put aside
Worked example
Saving toward $80,000 with $25,000 already banked, adding $1,500 a month at 4.5% APY.
- Shortfall: 80,000 − 25,000 = 55,000
- With interest at 4.5% the balance compounds while you save
Result: About 33 months — roughly 2 years 9 months. Interest earned along the way shortens it by four months versus saving into a zero-interest account.
Minimum Down Payment by Loan Program
The floor, not a recommendation. Eligibility rules differ and each program carries its own insurance or fee structure.
| Program | Minimum down | Mortgage insurance | Who qualifies |
|---|---|---|---|
| Conventional | 3% | PMI until ~20% equity, then cancellable | Most buyers; 3% programs are aimed at first-time buyers |
| FHA | 3.5% | MIP, usually for the life of the loan | Lower credit scores accepted; 10% required below ~580 |
| VA | 0% | None — a one-time funding fee instead | Eligible service members and veterans |
| USDA | 0% | Guarantee fee | Qualifying rural areas and income limits |
| Jumbo | 10–20% | Varies by lender | Loans above the conforming limit |
What Each Percentage Costs on a $400,000 Home
Cash needed up front, and the practical consequence. Closing costs of 2–5% are additional in every row.
| Down payment | Cash needed | Loan amount | PMI? |
|---|---|---|---|
| 3% | $12,000 | $388,000 | Yes |
| 3.5% (FHA) | $14,000 | $386,000 | MIP, typically for the loan's life |
| 5% | $20,000 | $380,000 | Yes |
| 10% | $40,000 | $360,000 | Yes, at a lower rate |
| 20% | $80,000 | $320,000 | No |
What the Down Payment Does to the Monthly Payment — $400,000 Home, 6.5%, 30 Years
Principal and interest plus PMI at 0.75% of the loan a year. Taxes, insurance and HOA are on top of every row. The jump between 10% and 20% is larger than it looks because two things change at once: the loan shrinks and the PMI disappears.
| Down payment | Cash at closing (with 3% costs) | Principal & interest | PMI | Monthly total |
|---|---|---|---|---|
| 3% | $24,000 | $2,452 | $243 | $2,695 |
| 3.5% (FHA) | $26,000 | $2,440 | $241 | $2,681 |
| 5% | $32,000 | $2,402 | $238 | $2,639 |
| 10% | $52,000 | $2,275 | $225 | $2,500 |
| 20% | $92,000 | $2,023 | $0 | $2,023 |
The PMI Trade-Off
PMI typically costs 0.3%–1.5% of the loan a year, scaled to your down payment and credit score.
| Down payment | Typical annual PMI rate | On a $380,000 loan |
|---|---|---|
| 3–5% | 0.75% – 1.5% | $2,850 – $5,700 per year |
| 10% | 0.45% – 0.9% | $1,710 – $3,420 per year |
| 15% | 0.3% – 0.6% | $1,140 – $2,280 per year |
| 20% or more | None | $0 |
How to Read Your Result
PMI is cancellable — MIP usually is not
On a conventional loan, PMI must be removed automatically once the balance reaches 78% of the original value, and you can request cancellation at 80%. FHA mortgage insurance works differently: with less than 10% down it generally lasts the whole loan, and the usual escape is to refinance into a conventional loan once you have equity. That distinction is worth more than the headline rate difference.
Waiting to reach 20% is not automatically right
If prices are rising faster than you save, waiting costs more than the PMI would have. PMI on a $380,000 loan at 0.75% is about $238 a month; a 4% annual rise on a $400,000 home is $1,333 a month of purchase price you are chasing. Run both, rather than assuming the 20% rule.
How much the down payment actually changes the payment
On a $400,000 home at 6.5% over 30 years, going from 5% down to 20% takes the monthly cost from $2,639 to $2,023 — $617 a month. But that is not the price of the extra $60,000 of cash alone. Two things change together: the loan falls by $60,000, worth about $379 a month, and the PMI stops, worth another $238. Which is why the 20% threshold produces a step rather than a slope, and why 15% to 19% down is the least efficient place to be: you have given up the cash and still pay the insurance.
The down payment is not the only cash you need
Closing costs run 2–5% of the price and are due at the same time — on a $400,000 home that is another $8,000 to $20,000. Lenders also expect to see cash reserves left over afterwards. Budget for the deposit plus closing plus a buffer, not the deposit alone.
Limitations & Accuracy Notes
- Program minimums are national baselines. Individual lenders impose their own overlays, and credit score, debt-to-income ratio and property type all affect what you are actually offered.
- PMI rates shown are typical ranges. Your rate depends on credit score, loan-to-value, loan type and the insurer, and can fall outside these bands.
- Closing costs, prepaid escrow, and moving expenses are not included in the savings target.
- The savings timeline assumes a constant monthly contribution and a constant APY. Rates on savings accounts move, and so do house prices — the target itself is not fixed.
- Down payment assistance programs exist in most states and can change the arithmetic substantially. They are not modeled here.
- This is a planning estimate, not a lending decision or financial advice.
Frequently Asked Questions
How much down payment do I need to buy a house?
What is Private Mortgage Insurance (PMI)?
How much cash do I need at closing, including closing costs?
How much does the down payment affect the monthly payment?
Should I put down less and keep the cash?
Why is 20% the number everyone mentions?
When can I stop paying PMI?
Is a larger down payment always better?
What costs are there besides the down payment?
Does the down payment affect my interest rate?
Is my data stored?
References & Further Reading
- CFPB — Consumer Financial Protection Bureau — US regulator guidance on mortgage insurance cancellation rights and closing costs
- Freddie Mac — Primary Mortgage Market Survey — Current average mortgage rates