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Down Payment Calculator

Plan your home purchase. See how long it will take to save your down payment and compare mortgage scenarios.

Conservative rate for short‑term savings (HYSA, CD, money market)

Mortgage Assumptions (for comparison)

Typical PMI is 0.5% – 1.5% of loan amount annually

Time to Reach Goal

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Current savings: $0

Compare Down Payment Options

Down Payment Amount Monthly Payment PMI

Saving Insight

Enter your details to see your savings timeline.

The Complete Guide to Saving for a Down Payment

Saving for a down payment is often the biggest hurdle to homeownership. The amount you put down affects not only your loan amount but also your monthly payment, whether you'll pay Private Mortgage Insurance (PMI), and even your offer's competitiveness. This Down Payment Calculator helps you set a realistic savings goal and timeline. It also compares different down payment percentages—from 3% to 20%—so you can see the trade‑offs between saving longer versus paying PMI.

Unlike basic calculators that only compute a dollar amount, this tool projects exactly how many months or years it will take to reach your target based on your current savings, monthly contribution, and expected return. The progress bar and comparison table give you a complete picture to make an informed decision.

Down Payment Requirements by Loan Type

  • Conventional Loan: As low as 3% for first‑time homebuyers, but 20% down avoids PMI.
  • FHA Loan: Minimum 3.5% down payment, but requires both upfront and annual mortgage insurance premiums (MIP) for the life of the loan if you put less than 10% down.
  • VA Loan: 0% down for eligible veterans and service members. No PMI, but a one‑time funding fee applies.
  • USDA Loan: 0% down for eligible rural properties. Guarantee fee similar to PMI.

💡 PMI: What You Need to Know

Private Mortgage Insurance typically costs 0.5% to 1.5% of the original loan amount per year. On a $300,000 loan, that's $1,500 to $4,500 annually—or $125 to $375 per month—until you reach 20% equity. This calculator includes PMI in the comparison table so you can see the true monthly cost of a lower down payment.

Strategies to Accelerate Your Down Payment Savings

  • Automate your savings: Set up automatic transfers to a dedicated high‑yield savings account right after payday.
  • Save windfalls: Tax refunds, bonuses, and gifts can make a significant dent in your goal.
  • Consider a CD ladder: For savings timelines of 1‑3 years, CDs or Treasury bills can offer higher yields than a standard savings account.
  • Explore down payment assistance: Many states and local governments offer grants or forgivable loans for first‑time buyers.

Beyond the Down Payment: Other Costs to Plan For

Remember that your down payment isn't the only cash you'll need at closing. Budget an additional 2‑5% of the home price for closing costs (loan origination fees, appraisal, title insurance, etc.). Also, maintain a separate emergency fund of 3‑6 months' expenses—don't drain your entire savings for the down payment.

Frequently Asked Questions

Is 20% down payment still required?

No. Many conventional loans allow as little as 3% down. However, putting down 20% avoids PMI, which can save you thousands over the life of the loan.

Can I use retirement funds for a down payment?

First‑time homebuyers can withdraw up to $10,000 from an IRA penalty‑free (taxes still apply). Some 401(k) plans allow loans for home purchases. Consult a tax professional before tapping retirement accounts.

How does PMI get removed?

Once your loan‑to‑value ratio reaches 80% (through payments or appreciation), you can request PMI cancellation. It automatically terminates when the balance reaches 78% of the original value.

Should I pay off debt or save for a down payment first?

High‑interest debt (credit cards) should generally be paid off first. For lower‑interest debt like student loans, you can save simultaneously. Lenders look at your debt‑to‑income ratio, so reducing debt improves your borrowing power.

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