π΅ Down Payment Calculator
Your savings plan: timeline, monthly target, and growth.
At your current savings pace
Estimates for planning only, not financial advice.
There is no single right down payment: 20 percent avoids PMI on conventional loans, 3.5 percent works for FHA, and VA buyers can put down zero. The real question is how fast you can save the target without draining your emergency fund. This calculator turns your home price, current savings, and monthly savings into a timeline and a target date.
How to Use This Calculator
Enter the home price and pick your down payment goal: 20 percent to avoid PMI, or a smaller target if you plan to buy sooner. Add what you have saved, what you can save each month, and the APY your savings earn. The calculator tells you how many months until you hit the goal and the calendar date, breaks down contributions versus interest, and shows the monthly savings you would need to hit the goal in your target timeframe instead.
Enter the Home Price and choose a Down Payment Goal percentage.
Enter your Saved So Far, Monthly Savings, and the Savings APY from your bank.
Read your timeline and target date. Then check the "needed per month" row against your Target Timeframe to see what pace your deadline requires.
The Savings Math
Two forces build your down payment: your contributions and compounding. Early on, contributions do almost all the work; the interest is a rounding error. As the balance grows, compounding starts to matter: in the final year of a long savings plan, interest can contribute the equivalent of an extra month or two of savings. The calculator compounds monthly, matching how high-yield savings accounts actually credit interest, and solves the timeline by testing month counts until the projected balance covers the goal.
Down Payment Minimums by Loan Type
The 20 percent rule is folklore, not law. Here is what programs actually require.
| Loan type | Minimum down | Mortgage insurance |
|---|---|---|
| Conventional | 3% | PMI until 78 to 80% LTV |
| FHA | 3.5% (580+ score) | MIP, usually for life |
| VA | 0% | None; one-time funding fee |
| USDA | 0% | Annual guarantee fee |
If you qualify for VA or USDA, the required down payment is literally zero. FHA's 3.5 percent on a $400,000 home is $14,000, a number most households reach years sooner than $80,000. Pick the program first, then set the target. Our FHA loan calculator and VA mortgage calculator price each path for you.
Worked Example
Target: 20 percent of a $400,000 home = $80,000. You have $15,000 saved, can save $1,000 a month, and earn 4 percent APY. Monthly rate = 0.3333 percent. After n months: $15,000 x (1.003333)^n + $1,000 x ((1.003333)^n - 1) / 0.003333 = $80,000. Solving gives about 57 months, roughly 4 years and 9 months. Of the $80,000, about $72,000 is your money ($15,000 + 57 x $1,000) and about $8,800 is interest. Want it in 36 months instead? Required monthly = ($80,000 - $15,000 x (1.003333)^36) x 0.003333 / ((1.003333)^36 - 1), which works out to about $1,652 a month.
The 20 Percent Question
Twenty percent down on a $400,000 home is $80,000, a mountain that takes years for most households. Before committing to the climb, price the alternative: 10 percent down means a $40,000 target you might hit in half the time, plus PMI of roughly $100 to $150 a month that cancels once you reach 20 percent equity. If your market appreciates while you save, waiting can cost more than PMI. The break-even math: compare (extra rent paid + price appreciation during the wait) against (PMI paid + slightly higher payment from buying sooner). In rising markets with affordable PMI, buying sooner with less down often wins; in flat markets, the patient 20 percent path is usually cheaper. Either way, start from a realistic price with our home affordability calculator.
The Full Cash You Actually Need
The down payment is the headline, not the total. Closing costs add 2 to 5 percent of the price: lender fees, title insurance, appraisal, prepaid taxes and insurance. On a $400,000 purchase with 10 percent down, that is $40,000 plus $8,000 to $20,000, and you still need an emergency fund left over after closing. Price the whole picture with our closing cost estimator before you set your savings target, or you will hit your down payment goal and still come up short at the closing table.
My rule: your savings target should be the down payment plus closing costs plus three months of expenses. Anything less and you are buying a house with no shock absorber, which is how a broken furnace becomes a missed mortgage payment.
Speeding Up the Timeline
The levers, in order of impact: save more per month (automate a payday transfer so willpower is not involved), cut the goal intelligently (a smaller down payment or a slightly cheaper home moves the date more than any interest rate), and park the money where it earns (a 4 percent high-yield account versus 0.1 percent checking is worth thousands over several years). Windfalls deserve a rule decided in advance: half of every bonus, tax refund, or raise goes straight to the down payment fund before lifestyle absorbs it. Track the balance monthly; watching the number climb is the motivation that sustains a multi-year plan.
Estimates for planning only, not financial advice.
Frequently Asked Questions
How much should I save for a down payment?
Twenty percent is the classic target because it avoids private mortgage insurance entirely and usually gets you better loan pricing. But smaller down payments are normal: 3.5 percent for FHA loans, 3 percent for some conventional programs, and 0 percent for VA and USDA loans. The right number balances PMI cost against the cost of waiting: every year you delay buying to save is a year of rent paid and potential appreciation missed.
How long will it take to save my down payment?
It depends on three numbers: your target, what you have saved now, and what you can set aside monthly, plus the interest your savings earn. Saving $1,000 a month from zero toward an $80,000 goal at 4 percent APY takes about 72 months, 6 years. Bump the monthly savings to $1,500 and it falls to about 50 months. Time is the hardest lever to move, which is why automating the transfer on payday matters more than chasing yield.
Should I wait until I have the full 20 percent?
Not always. If home prices in your market rise 4 percent a year, a $400,000 home gains $16,000 a year while you save, which can outrun your savings progress. Meanwhile PMI on a 10-percent-down conventional loan might cost $100 to $150 a month and drops off at 20 percent equity. Run both paths: the extra years of renting and price growth versus the PMI cost of buying sooner with less down.
Where should I keep my down payment savings?
In a high-yield savings account or money market account, not the stock market. A home purchase within five years is a short-term goal, and a market drop could erase a year of saving right when you need the money. High-yield savings currently pay several percent with zero risk to principal and instant access. Laddering CDs works too if your timeline is fixed, but keep at least the next few months of expected costs liquid.
Do I need more than the down payment saved?
Yes. Closing costs typically run 2 to 5 percent of the purchase price on top of the down payment, covering lender fees, title insurance, appraisals, and prepaid taxes and insurance. On a $400,000 home with 10 percent down, budget $40,000 for the down payment plus $8,000 to $20,000 for closing, plus a separate emergency fund you do not touch. Being "house poor" on day one, with zero reserves, is how small surprises become missed payments.
Can gift money count toward my down payment?
Yes, with documentation. Conventional loans generally allow gift funds for part or all of the down payment on primary residences, and FHA allows the entire 3.5 percent to come from gifts. Lenders require a gift letter stating the money is not a loan, plus a paper trail showing the transfer. What lenders will not accept is borrowed money disguised as savings, so any large deposit in the months before closing will be questioned.
Do I really need 20 percent down to buy a house?
No. It is the most persistent myth in home buying. Conventional programs allow 3 percent, FHA allows 3.5 percent, and VA and USDA allow zero for qualified buyers. Most first-time buyers put down well under 20 percent. The 20 percent figure matters because PMI disappears there on conventional loans, not because lenders require it.
Can I use my 401(k) for a down payment?
You can, but think twice. A 401(k) loan lets you borrow from yourself, usually up to $50,000 or half your vested balance, and you repay the interest to your own account. But the money misses market growth while it is out, and leaving your job can trigger immediate repayment. A straight withdrawal before age 59 and a half adds income tax plus a 10 percent penalty. My view: a last resort, not a plan.
What is down payment assistance?
State and local programs that help buyers with grants, forgivable loans, or low-interest second mortgages for the down payment, often aimed at first-time buyers under income limits. Many buyers who assume they cannot afford a home qualify and never check. Search your state's housing finance agency site. The money is real, and it goes unclaimed every year.
Is it better to put down more than 20 percent?
Rarely. Beyond 20 percent you have already dodged PMI, and each extra dollar buys a slightly smaller payment at the cost of liquidity you cannot easily get back. Keeping a healthy emergency fund plus money for moving, repairs, and furniture usually beats stretching to 25 or 30 percent down. Cash in the bank after closing is worth more than a slightly smaller mortgage.