Down Payment Calculator

Your down payment is the upfront cash you bring to a home purchase. It directly determines how much you'll borrow, your monthly mortgage payment, and whether you'll need private mortgage insurance (PMI).

Most conventional mortgages require between 3% and 20% down. FHA loans go as low as 3.5%, and VA or USDA loans can be zero down for qualifying buyers. The lower your down payment, the higher your monthly payment and total interest paid over the life of the loan.

20% down is the traditional benchmark because it eliminates PMI — an extra monthly fee that protects the lender, not you. On a $400,000 home, going from 5% to 20% down can save $150–$250 per month in PMI alone.

Beyond the down payment, budget 2%–5% of the home price for closing costs. A $400,000 home with 10% down ($40,000) typically requires another $8,000–$20,000 in closing costs at signing.

There is no single 'right' down payment — the right number is the one that lets you buy the right house without draining the savings that keep you safe after closing. Lenders care about the loan-to-value ratio (LTV) — the percentage of the home's value you're borrowing. At 80% LTV (20% down) you unlock the best conventional rates and skip PMI entirely. At 95% LTV (5% down) you can still buy, but you'll pay a slightly higher rate and PMI on top.

The math behind a down payment is simple but the consequences are not. A larger deposit shrinks the loan you need, which reduces both the monthly principal & interest and the total interest paid over 30 years. On a $400,000 home at 6.5%, raising the down payment from 5% to 20% drops the monthly P&I by about $380 and saves around $137,000 in lifetime interest — before counting PMI savings of $150–$250/month for the first 8–10 years.

But there's a cost to going bigger, too. Cash put into a down payment is no longer available for an emergency fund, home repairs, furniture, or investing. Most financial planners suggest keeping at least 3–6 months of expenses in cash after closing, plus a separate $5,000–$10,000 cushion for first-year homeownership costs (HVAC, appliances, surprise plumbing). If hitting 20% means raiding your emergency fund, putting 10% down and paying PMI for a few years is almost always the safer trade.

First-time buyers have more options than they realize. FHA loans accept 3.5% down with a 580+ credit score and lower DTI flexibility, in exchange for MIP (mortgage insurance premium) that usually lasts the life of the loan. VA loans for eligible veterans and active service members allow 0% down with no monthly mortgage insurance — the strongest deal in the market when you qualify. USDA loans cover 0% down on properties in eligible rural areas. Many states and cities also offer down-payment assistance programs that provide grants or forgivable loans of $5,000–$30,000 to qualifying buyers.

If you're still saving, treat the down payment as a structured savings goal: subtract what you already have, divide the gap by a realistic monthly contribution, and pick a high-yield savings account that pays 4–5% APY rather than letting the money sit in a checking account earning nothing. Our cornerstone guide on house deposits walks through every tier — 3%, 5%, 10%, 15%, 20%, 25% — with full PITI math and savings timelines.

Finally, remember that the down payment doesn't have to come from one source. Most loan programs allow gifted funds from family with a signed gift letter, and conventional lenders generally accept funds from a 401(k) loan, brokerage account, or proceeds from selling another home. Document every transfer carefully — lenders verify the source of every dollar at the down-payment table.