Home down payment calculator guide
A home purchase cash target includes more than the down payment. Closing costs, moving expenses and an emergency cushion also matter. This calculator keeps the down payment and estimated closing costs visible and projects the savings timeline.
Loan programs have different minimums and mortgage-insurance rules. Use this estimate for planning, then compare official lender disclosures.
How to use this down payment calculator
- Enter a target home price: Use a realistic purchase-price range.
- Choose a down payment: Test percentages that match loan programs you may consider.
- Enter available savings: Exclude emergency funds and money reserved for moving or repairs.
- Add monthly savings: Enter a sustainable recurring contribution.
- Estimate closing costs: Refine the percentage when lender estimates become available.
Formula and variables
The savings projection applies any entered monthly return to the existing balance, then adds the monthly contribution until the target is reached.
Target cash = home price × (down payment % + closing cost %)- Target cash — Purchase savings goal
- Down payment plus estimated closing costs. (USD)
- Monthly contribution — New savings
- Amount added after monthly growth. (USD/month)
Worked example: $400,000 home with 10% down
A buyer targets a $400,000 home, 10% down, 3% closing costs, $30,000 saved and $1,500 monthly contributions with no assumed growth.
- Down payment
- $40,000
- Closing-cost estimate
- $12,000
- Cash target
- $52,000
- Subtract $30,000 current savings from the $52,000 target.
- Divide the $22,000 gap by $1,500 and round up to a whole month.
Result: Approximately 15 months to reach the target
The estimate excludes an emergency reserve, moving costs and changes in home prices or closing charges.
Understanding your results
Cash target
This combines the selected down payment and closing-cost estimate.
Time to save
This is a projection based on constant contributions and the entered return, not a guarantee.
Loan amount
Home price minus down payment; financed fees are not included.
Assumptions
- The home price and savings target do not change.
- Contributions occur monthly and the entered return remains constant.
- Savings remain available for the purchase.
Limitations
- Investment returns can be negative and are not guaranteed.
- Closing costs and required down payments vary by loan and location.
- The calculator does not determine loan eligibility or affordability.
Common mistakes
- Using all savings for closing and leaving no emergency cushion.
- Forgetting closing, moving and repair costs.
- Assuming every loan requires exactly 20% down.
Practical use cases
Compare down payment percentages
See how 3%, 5%, 10% or 20% changes upfront cash and loan amount.
Build a savings timeline
Translate a purchase goal into an estimated number of monthly contributions.
Planning and decision guide
Down payment choices affect more than the loan amount
A larger down payment reduces the amount borrowed and may change mortgage-insurance requirements, pricing and available loan programs. The best percentage is not automatically the largest amount you can produce; preserve enough cash for closing, moving, repairs and financial shocks.
- Compare the same home price at several down payment percentages.
- Request lender scenarios with the same rate-lock timing and loan term.
- Keep an emergency reserve outside the purchase cash target.
Match the savings approach to the purchase timeline
Money needed for a near-term purchase should not depend on an optimistic investment return. Use the return field to test a clearly labeled assumption, including 0%, and consider liquidity, loss risk and access timing before choosing where to hold the funds.
Look for assistance without assuming eligibility
State housing finance agencies, local programs, employers and eligible loan programs may offer assistance, but limits, repayment terms and occupancy rules vary. Treat assistance as confirmed only after reviewing current program documents with an approved provider.
Frequently asked questions
How much down payment do I need for a house?
Requirements depend on the loan program and lender. Some loans permit low or no down payments, while a larger down payment may reduce borrowing costs.
Are closing costs included?
Yes, as a planning percentage of home price. Replace the estimate with itemized lender figures when available.
Does a 20% down payment avoid PMI?
Many conventional loans use 20% as an important threshold, but mortgage-insurance rules vary by program and lender.
Should I invest down payment savings?
Money needed soon is exposed to loss if invested. Choose assumptions consistent with your time horizon and risk tolerance.
Sources and review
- Determine your down payment — Consumer Financial Protection Bureau. Accessed 2026-07-09.
- Ready to buy a home? — Consumer Financial Protection Bureau. Accessed 2026-07-09.
Reviewed 2026-07-09.