Calculate your down payment amount for any home price and percentage. See PMI thresholds and a savings timeline to reach your target.
The down payment is the cash you pay upfront when purchasing a home. It directly reduces the amount you need to borrow — a larger down payment means a smaller mortgage, lower monthly payments, and less interest paid over the life of the loan.
The magic threshold is 20 percent. Put down at least 20% and you avoid Private Mortgage Insurance (PMI), saving hundreds of dollars per month. Below 20%, lenders require PMI to protect themselves against default risk, adding a significant recurring cost.
This Down Payment Calculator shows the dollar amount for any home price and percentage, flags whether PMI applies, and estimates how long it will take to save your target amount based on your monthly savings rate. Planning ahead makes homeownership achievable. While 20% down avoids private mortgage insurance, many programs accept as little as 3% or even 0% for qualified buyers. The tradeoff between a larger down payment and keeping cash reserves for emergencies and moving costs deserves careful analysis.
Knowing exactly how much you need gives you a concrete savings goal. This calculator shows dollar amounts at different percentages so you can weigh the trade-offs — a smaller down payment gets you into a home sooner, but a larger one saves money on PMI and interest. The savings timeline keeps your plan on track.
Down Payment = Home Price × (Percentage ÷ 100). Loan Amount = Home Price − Down Payment. PMI Required = Percentage < 20%. Months to Save = (Down Payment − Current Savings) ÷ Monthly Savings.
Result: $35,000 down payment — 17 months to save (PMI required)
At 10% down on a $350,000 home, you need $35,000. With $10,000 already saved and adding $1,500 per month, you need $25,000 more — about 17 months. At 10% down, PMI will be required until you reach 20% equity in the home.
Three percent down is the minimum for conventional loans (Fannie Mae and Freddie Mac programs). FHA loans require 3.5%. These low-down-payment options help first-time buyers, but they come with PMI and higher monthly costs. At 10% down, PMI costs are lower. At 20%, PMI is eliminated entirely.
Building a down payment takes discipline. Set up automatic transfers to a dedicated savings account. Track your progress monthly. If the timeline is too long, consider a less expensive home, a lower down payment percentage, or ways to increase your savings rate.
Remember that the down payment is not your only upfront cost. Closing costs (2–5% of purchase price), moving expenses, initial repairs, and furnishing all require cash. Build a comprehensive budget that covers everything — not just the down payment.
The ideal amount depends on your situation. Putting 20% down avoids PMI and reduces your loan amount significantly. However, many buyers put down 5–10% to buy sooner. First-time buyer programs accept as little as 3%. The key is balancing getting into a home quickly versus minimizing long-term costs.
Private Mortgage Insurance (PMI) is required on conventional loans when the down payment is less than 20%. It protects the lender if you default. PMI typically costs 0.5–1.5% of your loan amount annually and is added to your monthly payment until you reach 20% equity.
Some options exist: VA loans have no PMI regardless of down payment, lender-paid mortgage insurance folds the cost into a slightly higher rate, and piggyback loans use a second mortgage to avoid PMI. Each has trade-offs worth discussing with a mortgage professional.
For money needed within 1–3 years, a high-yield savings account or money market account is safest. Avoid volatile investments that could lose value before you need the funds. Some states offer first-time homebuyer savings accounts with tax benefits.
Yes, most loan programs accept gift funds from family members for down payments. The donor must provide a gift letter stating the funds are a gift, not a loan. FHA, VA, and conventional loans all allow gifts, though conventional loans may require some of your own funds as well.
Balance is important. Draining all savings for a larger down payment leaves you vulnerable to emergencies. Most financial advisors recommend keeping 3–6 months of expenses in reserve after your down payment and closing costs. A slightly smaller down payment with a solid emergency fund is often the safer choice.