Down Payment Calculator
Calculate the down payment needed to buy a home, see if PMI applies, estimate closing costs, and find out how long it takes to save your target amount.
3%=Conventional min · 3.5%=FHA · 20%=No PMI
Typical range: 2–5%
Savings timeline
Enter a home price and down payment to see results.
Down payment
—
Loan amount
—
Closing costs
—
Total cash needed
—
PMI applies
Down payment < 20% — PMI required on conventional loans. Estimated cost:
—
PMI cancels when your equity reaches 20% of original home value.
LTV ratio
—
Down payment ≥ 20% — no PMI required. LTV = —
Savings timeline
Still need
—
Time to goal
—
—% saved
Down payment scenarios
| Down % | Type | Down amount | Loan | PMI/mo |
|---|
How it works
How down payments work.
- 01
Down payment sets your loan size and PMI
Down payment = home price × down %. The remaining balance becomes your mortgage. If down payment is under 20%, lenders require PMI (private mortgage insurance) on conventional loans — typically 0.5–1.5% of the loan amount annually. On a $360,000 loan at 0.8%/yr, PMI costs $240/mo. PMI cancels when you reach 20% equity.
- 02
Closing costs add 2–5% more cash needed
Closing costs cover loan origination, appraisal, title insurance, escrow, and prepaid taxes/insurance. Typically 2–5% of the home price — $8,000–$20,000 on a $400k home. Total cash at closing = down payment + closing costs. First-time buyer programs and seller concessions can offset some or all closing costs.
- 03
Save with compound interest toward your goal
If you have current savings and add a fixed amount each month, your target is reached when accumulated savings ≥ total cash needed. Investing savings in a high-yield account (HYSA) at 4–5% APY accelerates the timeline. For a $52,000 goal with $10,000 saved and $1,500/month, you need about 28 months — or faster if you earn interest on the savings.
FAQ
Frequently asked questions.
How much is a 20% down payment on a $400,000 house?
A 20% down payment on a $400,000 house is $80,000. The remaining loan amount is $320,000. At 20% down you avoid PMI (private mortgage insurance), which saves roughly $200–$267/month on a $320,000 loan. Putting 20% down also typically qualifies you for better mortgage rates. Closing costs add another 2–5% ($8,000–$20,000), so total cash needed is roughly $88,000–$100,000.
How much do you need for a down payment on a $300,000 house?
Minimum down payment on a $300,000 house depends on the loan type: Conventional (3%): $9,000; FHA loan (3.5%): $10,500; VA/USDA loan (eligible buyers): $0. A 20% down payment to avoid PMI is $60,000. With 3–5% down, expect to pay monthly PMI of $125–$250 until your equity reaches 20%. Closing costs add $6,000–$15,000 (2–5%), so total cash needed is $15,000–$75,000 depending on down payment.
What is the 3-3-3 rule for home buying?
The 3-3-3 rule is a general affordability guideline: spend no more than 3× your annual gross income on a home, keep your mortgage payment under 30% of your monthly gross income, and put down at least 3% (some versions say aim for a 30-year fixed mortgage). For example, if your household income is $100,000/year, the 3× rule suggests a home price of $300,000 or less. It's a rough heuristic — actual affordability depends on debt load, local taxes, and interest rates.
What is PMI and when can I avoid it?
PMI (private mortgage insurance) protects the lender if you default. It is required on conventional loans when your down payment is less than 20%. PMI typically costs 0.5–1.5% of your loan amount annually — about $100–$300/month on a $250,000 loan. You can avoid PMI by: putting 20% or more down; using a VA or USDA loan (eligible buyers); using a piggyback loan (80-10-10). Once your home equity reaches 20% you can request cancellation; it auto-cancels at 22% equity under federal law.
How much are closing costs when buying a home?
Closing costs typically range from 2–5% of the purchase price. On a $300,000 home that is $6,000–$15,000. Common items: loan origination fee (0.5–1%), appraisal ($300–$600), title insurance ($1,000–$2,000), escrow fees ($500–$2,000), recording fees ($50–$200), homeowner's insurance (first year), and prepaid interest. Some buyers negotiate seller concessions to cover part of closing costs. First-time buyer programs in many states also offer closing cost assistance.
Related
Related calculators.
Last updated: July 28, 2026