Is this Down Payment calculator free?

Yes — completely free with no registration required. All calculations happen instantly in your browser.

Yes — all calculations happen in your browser. NerdyTools does not store or transmit any of your inputs. Your data never leaves your device.

How accurate is this Down Payment calculator?

This calculator uses established formulas and verified figures checked against official sources.

Does this work on mobile?

Yes — fully responsive and works on any modern browser on desktop, tablet, or mobile. No app download needed.

💰 Finance & Money

Down Payment Calculator

Find out exactly how much you need for your down payment — and how long it'll take to save it.

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Pick a mode: find how much you need for a target home price, or how long it'll take to save what you need.

Home Price ($)

Down Payment (%)

Please enter a home price greater than 0.

Down Payment Needed

Down Payment

Loan Amount

Quick facts: Per the CFPB, conventional loans with less than 20% down typically require private mortgage insurance (PMI) until you reach 20% equity.

How Much Down Payment Do You Actually Need?

There's no single legal minimum — it depends on your loan type. Conventional loans can go as low as 3%, FHA loans as low as 3.5%, and VA/USDA loans sometimes require none at all. But the most commonly cited target is 20%, because of one specific cost it lets you avoid.

The 20% PMI Threshold

Down Payment = Home Price × Down Payment %
Loan Amount = Home Price − Down Payment

Per the CFPB, conventional loans with a down payment below 20% typically require private mortgage insurance (PMI) — an added monthly cost that protects the lender, not you, until you build enough equity.

How to Use This Calculator

Use "How Much I Need" to see the exact dollar figure for any home price and down payment percentage. Use "How Long to Save" to map out a savings timeline based on what you have now, what you can contribute monthly, and a realistic return rate for short-term savings.

Why 20% Isn't Always the Right Target

Waiting to save a full 20% can take years, during which home prices and rents may keep rising. Many buyers reasonably choose to put down less and pay PMI temporarily, especially since PMI can be cancelled once you reach 20% equity through payments or appreciation.

💡 PMI typically costs far less than another year of rising rent or home prices — run both scenarios before assuming you must wait for 20%.

Where Down Payment Money Can Come From

Personal savings: the most straightforward and most common source
Gift funds: often allowed from family, sometimes with lender documentation requirements
Down payment assistance programs: state and local programs that supplement what you've saved
Retirement account withdrawals: possible in some cases, but often comes with penalties or future retirement tradeoffs

Worked Example

Saving $80,000 for a 20% down payment on a $400,000 home, starting from $10,000, contributing $800/month at a 4% annual return: that takes roughly 7 years. Doubling the monthly contribution to $1,600 cuts that down to around 4 years — the contribution rate matters more than the return rate for short time horizons like this.

How This Affects Your Loan

A bigger down payment means a smaller loan amount, which means a smaller monthly payment and less total interest over the life of the loan. Check the resulting payment with our mortgage calculator, or see whether your income can support it with our mortgage affordability calculator.

Frequently Asked Questions

What's the minimum down payment for a house?

It depends on the loan type — conventional loans can go as low as 3%, FHA as low as 3.5%, and VA or USDA loans sometimes require none.

Why is 20% the common target?

Because conventional loans with less than 20% down typically require private mortgage insurance (PMI), an added monthly cost until you build enough equity.

Can I use gift money for my down payment?

Often, yes — many lenders accept gift funds, particularly from immediate family, though documentation requirements (a "gift letter") usually apply.

Should I wait to save 20% or buy sooner with PMI?

It depends on your local market. If home prices or rent are rising faster than you can save, buying sooner with PMI — which can later be cancelled — sometimes works out better financially.

Can I remove PMI later?

Yes — once you reach 20% equity through payments or home appreciation, you can typically request PMI cancellation, and federal law requires automatic termination at 78% loan-to-value in most cases.

Does a bigger down payment always make sense?

Usually it lowers your monthly payment and total interest, but it also ties up more cash — make sure you keep an emergency fund rather than draining all your savings into a down payment.

What return rate should I use for "How Long to Save"?

A conservative one, since you'll need this money relatively soon. A high-yield savings account rate (often 3–5%) is more appropriate than stock market return assumptions for short-term goals.

Does this calculator include closing costs?

No — closing costs (typically 2–5% of the loan amount) are separate from the down payment and should be budgeted for in addition to it.