Down Payment Calculator
Figure out exactly how much you need to save for a down payment and closing costs, and how long it will take to reach your goal. Adjust the down payment percentage with the slider and enter your monthly savings to see your timeline.
This calculator provides estimates for general informational purposes only and does not constitute financial advice. Consult a qualified financial professional before making any financial decisions.
How It Works
The down payment is the upfront cash payment you make toward a home purchase. The remainder is financed through a mortgage.
Down payment amount = Home price × (Down payment % ÷ 100)
Closing costs are fees paid at settlement. They typically range from 2–5% of the loan amount and include origination fees, title insurance, appraisal, escrow, recording fees, and prepaid items (first insurance premium, property tax escrow).
Estimated closing costs = Loan amount × 0.03 (using 3% as a conservative midpoint estimate)
Total cash needed = Down payment + Closing costs
Months to save = Total cash needed ÷ Monthly savings
Worked example: $350,000 home, 10% down, $1,200/month savings.
Down payment = $350,000 × 0.10 = $35,000
Loan amount = $350,000 − $35,000 = $315,000
Estimated closing costs = $315,000 × 0.03 = $9,450
Total needed = $35,000 + $9,450 = $44,450
Months to save = $44,450 / $1,200 ≈ 37 months (3 years, 1 month)
Note: This assumes savings earn no interest. In practice, keeping savings in a HYSA or money market account will shorten the timeline slightly.
Frequently Asked Questions
How much down payment do I need?
Conventional loans typically require 3–20%. FHA loans require 3.5% with good credit. VA and USDA loans require 0% down for eligible borrowers. However, putting down less than 20% on a conventional loan requires PMI, adding to monthly costs.
What are closing costs?
Closing costs are fees paid to finalize the home purchase. They typically include: loan origination (0.5–1%), appraisal ($300–$600), title insurance ($500–$2,000+), title search, attorney fees, recording fees, prepaid property taxes, and homeowners insurance. Total is usually 2–5% of the loan amount.
Is a 20% down payment worth it?
A 20% down payment eliminates PMI (saving 0.5–1.5%/year), reduces the loan amount, lowers monthly payments, and often secures better interest rates. The tradeoff is a longer savings timeline. In high-appreciation markets, time in the market can offset PMI costs — run the numbers both ways.
Can I use gift money for a down payment?
Yes, for most loan types. Lenders will require a gift letter stating the money is a gift, not a loan. FHA allows 100% of the down payment to come from gifts. Conventional loans have varying rules depending on down payment percentage.
How can I save for a down payment faster?
Common strategies: automate savings to a dedicated high-yield savings account, cut discretionary spending, take on side income, ask family for gift contributions, and look into first-time buyer programs in your state that offer grants or low-interest second mortgages for down payment assistance.