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Down Payment Calculator

Use this down payment calculator to find out how much you need to save for a home, how much you will need to borrow, and how long it will take to reach your savings goal based on your current savings and monthly contributions.

The expected purchase price of the home you want to buy.

The percentage of the home price you plan to put down. A 20% down payment avoids private mortgage insurance (PMI) on conventional loans.

The amount you have already saved toward your down payment.

The amount you can save each month toward your down payment goal.

The expected annual return on your savings, such as from a high-yield savings account or money market fund. This is optional and helps estimate a more realistic timeline.

This calculator helps prospective homebuyers plan for one of the biggest financial milestones: the down payment. Enter your target home price and desired down payment percentage to see the dollar amount needed, the resulting loan amount, and how long it will take to save based on your current savings and monthly contribution rate. An optional savings return rate accounts for interest earned while you save.

How It Works

Down Payment Savings Formula

Down Payment = Home Price x (Down Payment % / 100); Loan Amount = Home Price - Down Payment; Savings Gap = Down Payment - Current Savings; Months to Save = Savings Gap / Monthly Savings (adjusted for returns)

The down payment amount is calculated from the home price and your chosen percentage. The savings gap is the difference between the required down payment and what you have saved. The timeline estimates how long it takes to close the gap with monthly contributions and optional interest.

The down payment amount is the home price multiplied by the down payment percentage.

The loan amount is the home price minus the down payment, representing how much you need to borrow.

The savings gap is how much more you need to save, calculated as the down payment minus your current savings.

If a savings return rate is provided, the timeline accounts for compound interest on your growing savings balance.

If no return rate is provided, the timeline is a simple division of the savings gap by monthly contributions.

Important Notes:

  • •This calculator estimates the down payment amount and savings timeline only. It does not include closing costs, which typically add 2-5% of the home price.
  • •The savings return rate is applied monthly using compound interest to provide a more realistic timeline.
  • •If current savings already exceed the required down payment, the savings gap is zero and no additional saving is needed.
  • •Home prices may change during your savings period, which this calculator does not account for.

Worked Example

A buyer wants to purchase a $400,000 home with 20% down. They have $30,000 saved and contribute $1,500 per month to savings earning 4% annually.

Inputs:

  • home Price:400,000
  • down Payment Pct:20
  • current Savings:30,000
  • monthly Savings:1,500
  • savings Return Rate:4

Result:

The down payment amount is $80,000 and the loan amount would be $320,000. The savings gap is $50,000. With $1,500 monthly savings and a 4% annual return, it would take approximately 31 months (about 2.6 years) to reach the down payment goal.

Who Is This Calculator For?

  • first-time homebuyers
  • home savers
  • prospective homeowners
  • anyone planning a home purchase

Frequently Asked Questions

The standard recommendation is 20% to avoid private mortgage insurance. However, many loan programs allow much less. FHA loans require as little as 3.5% down, conventional loans can start at 3%, and VA loans may require zero down for eligible veterans. The right amount depends on your financial situation and the loan program you choose.
PMI is insurance that protects the lender if you default on your mortgage. It is typically required when your down payment is less than 20% on a conventional loan. PMI usually costs 0.5% to 1% of the loan amount per year, added to your monthly payment. It can be removed once you reach 20% equity.
This depends on your local housing market, how fast prices are rising, your monthly budget for PMI, and your overall financial stability. Buying sooner with a smaller down payment lets you start building equity but costs more monthly. Waiting to reach 20% avoids PMI but risks higher prices. Run the numbers both ways to see which scenario works better for your situation.
A high-yield savings account or money market account is ideal for down payment savings because the money is FDIC-insured, easily accessible, and earns a reasonable return. Avoid investing down payment funds in stocks or volatile assets if you plan to buy within the next 1-3 years.
Yes, many states, cities, and nonprofit organizations offer down payment assistance programs for first-time homebuyers and low-to-moderate income buyers. These may include grants, forgivable loans, or matched savings programs. Check with your state housing finance agency for available options.
No, this calculator focuses on the down payment only. Closing costs typically add 2-5% of the home price and include fees for the appraisal, title insurance, attorney, origination, and other services. Plan for both the down payment and closing costs when setting your savings goal.

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Last updated: April 11, 2026