Down Payment Calculator

Enter the home price you're targeting, your current savings, and your monthly savings rate. The calculator returns three things: the down payment amount at common thresholds (5%, 10%, 20%), the months it'll take to reach each target, and the closing costs you'll need on top.

Twenty percent down avoids private mortgage insurance (PMI), which adds 0.5–1.5% of the loan amount per year until you cross the 20% equity line. On a $400,000 house, PMI runs $1,500–4,500 a year — meaningful enough that hitting 20% before buying is worth a year of extra saving for many buyers.

Closing costs (lender fees, title insurance, taxes, prepaid escrow) typically run 2–5% of the purchase price. The calculator builds these into the savings target so you arrive at closing with the full amount needed, not just the down payment.

How each threshold compares: 3% (some conventional loans, ideal credit) means PMI for years and a higher monthly payment, but lets you buy sooner. 5% conventional drops PMI faster as the loan amortizes. 10% reduces PMI cost meaningfully (lower premium with more equity). 20% eliminates PMI entirely and gives you immediate equity buffer for life events (job loss, sudden repairs, needing to sell early in a downturn). Each tier is a real trade-off between time and money.

Worked example: target $400k home, $25k saved, $1,200/month savings rate. 5% down ($20k) plus 3% closing ($12k) = $32k needed. You're $7k short, which takes ~6 months at $1,200/month. 20% down ($80k) plus closing ($12k) = $92k needed. You're $67k short, which takes 56 months — over 4.5 years. The decision: rent for 5 years saving aggressively, or buy in 6 months at 5% down and pay PMI of ~$2,400/year for the first 5 years (until you hit 20% equity through amortization and appreciation). Math is roughly: 5 years × $2,400 = $12,000 in PMI vs 5 years of rent at $20k+/year ($100k). The buy-now math wins on absolute dollars — but only if home prices stay stable or rise.

What the calculator can't model: home appreciation rate (regional and unpredictable), interest rate at the time you actually buy (which can move 1-2% in a year), and life events that derail saving. The 'months to target' figure assumes consistent saving and stable home prices. In a fast-rising market, the goalpost moves while you save. That's the case for buying earlier with less down — you lock in the price now, and PMI is the cost of admission.