Down Payment Calculator
Calculate how much down payment you need, monthly savings required, and how long it will take to reach your goal.
HYSA ~4.5–5%, Invested ~7%
Down Payment Goal
$0
20% of home price
Savings Progress
Time to Reach Goal
Loan Impact at 7% / 30yr
Down Payment Comparison
| Down % | Amount | Monthly Pmt | PMI |
|---|
💡 Down Payment Tips
- • 20% down = no PMI, lower monthly payment
- • FHA allows 3.5% down with 580+ credit score
- • First-time buyers may qualify for down payment assistance
- • VA & USDA loans offer 0% down for eligible buyers
- • High-yield savings accounts earn 4–5% interest
Quick Answer
For a $350,000 home with a 20% down payment goal ($70,000), starting with $10,000 saved and adding $1,000 monthly at 4.5% return, it will take approximately 55 months to reach your down payment goal. Adjust the calculator above with your own savings and home price for a personalized timeline.
Monthly Savings Growth Plan
| Month | Monthly Savings | Interest Earned | Total Saved | Remaining |
|---|
What is a Down Payment?
Searched as "down payment calculator" or as part of broader "mortgage pre approval" planning, this tool helps you determine exactly how much you need to save before applying for a home loan.
A down payment is the upfront cash amount you pay toward a home purchase, with the remaining balance financed through a mortgage. Your down payment directly reduces your loan amount, lowers your monthly payment, and — if it reaches 20% on a conventional loan — eliminates the need for private mortgage insurance (PMI), potentially saving hundreds of dollars per month.
How to Use the Down Payment Calculator Step by Step
- Enter your target home price — the price you're planning to purchase.
- Select your down payment percentage — use quick buttons for 3.5%, 5%, 10%, or 20%.
- Enter your current savings — how much you've already saved toward your goal.
- Enter your monthly savings amount — how much you can consistently set aside each month.
- Add your expected savings return rate — such as a high-yield savings account rate.
- Review your results — see your savings timeline, target date, and how home price appreciation affects your goal.
Down Payment Requirements by Loan Type in 2026
Down payment requirements vary significantly depending on the loan program you qualify for, ranging from 0% for veteran and rural buyers to 20% for those wanting to avoid mortgage insurance entirely.
| Loan Type | Min. Down Payment | PMI/MIP Required? |
|---|---|---|
| Conventional | 3% – 5% | Yes, if <20% down |
| FHA | 3.5% | Yes, life of loan (if <10%) |
| VA | 0% | No (funding fee instead) |
| USDA | 0% | Yes, guarantee fee |
Requirements are general guidelines for 2026 and may vary by lender and individual qualification.
Why 20% Down Payment Matters
- Eliminates PMI: A 20% down payment on a conventional loan removes the need for private mortgage insurance entirely.
- Lower Monthly Payment: A larger down payment directly reduces your loan amount and resulting monthly payment.
- Better Interest Rates: Lenders often offer slightly better rates to borrowers with lower loan-to-value ratios.
- Instant Equity: You start homeownership with built-in equity, providing a cushion against market fluctuations.
- Stronger Offer: In competitive markets, a larger down payment can make your purchase offer more attractive to sellers.
Down Payment Calculator FAQs
Where should I save my down payment money?
High-yield savings accounts offering 4% to 5% APY and FDIC insured are ideal for down payment savings since you need this money accessible within a few years. Money market accounts offer similar safety, while I-Bonds provide inflation protection but are limited to $10,000 per year in purchases.
How does home price appreciation affect my down payment goal?
If home prices rise while you're saving, your target down payment amount increases proportionally since it's a percentage of the purchase price. For example, at 3% annual appreciation, a $350,000 home today could cost $371,000 in two years, requiring a larger down payment to maintain the same percentage.
Can family gift money count toward my down payment?
Yes, most loan programs allow gift funds from family members toward your down payment, though lenders require a gift letter confirming the funds are not a loan requiring repayment. FHA and conventional loans have specific documentation requirements for gift funds — check with your lender for exact rules.
Are there down payment assistance programs available?
Yes, many states and local governments offer down payment assistance programs, grants, or zero-interest second loans for first-time homebuyers, often income-restricted. Check your state's housing finance agency website or ask your lender about programs available in your area.
Tips to Save for a Down Payment Faster
- Automate your savings: Set up automatic transfers to a dedicated high-yield savings account each payday.
- Consider a smaller down payment loan: FHA (3.5%) or conventional (3-5%) loans let you buy sooner if you can handle PMI temporarily.
- Look into assistance programs: Many first-time buyer programs offer grants or low-interest loans for down payments.
- Reduce major expenses temporarily: Redirect discretionary spending toward your savings goal during the saving period.
- Ask about gift funds: Family contributions can significantly accelerate your timeline if allowed by your loan program.
3.5% vs 10% vs 20% Down Payment Comparison
| 3.5% Down | 10% Down | 20% Down | |
|---|---|---|---|
| Loan Amount | Highest | Moderate | Lowest |
| PMI/MIP Required | Yes | Yes (usually) | No |
| Time to Save | Shortest | Moderate | Longest |
Disclaimer: This calculator provides estimates only and does not constitute financial or lending advice. Actual savings growth, loan terms, and appreciation rates may vary. Consult a licensed mortgage professional for personalized guidance.