Down Payment Calculator
See your cash to close at any down payment tier — and how many months of saving gets you there
20% avoids PMI on conventional loans
Typically 2–5% of the price
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Quick summary
Your cash at closing is the down payment plus closing costs (typically 2–5% of the price). On a $400,000 home, 20% down plus 3% closing costs means $92,000 in cash. You don't need 20% — conventional loans start at 3% and FHA at 3.5% — but below 20% you'll pay PMI until you reach 20% equity. Enter your savings rate to see how many months away you are.
Reviewed by Simple Calculators TeamLast reviewed
How to use this calculator
- Enter the inputs requested by the calculator.
- Choose the units or options that match your situation and review the assumptions.
- Run or update the calculation to see the result.
- Review the result, breakdown, and formulas shown on the page.
- Check the inputs, units, dates, and limitations before saving or sharing the result.
Frequently asked questions
How much down payment do I need for a house?
Conventional loans allow as little as 3% down (3.5% for FHA, 0% for VA and USDA if eligible). The 20% figure isn't a requirement — it's the threshold where private mortgage insurance (PMI) disappears and offers become more competitive.
What is PMI and how much does it cost?
Private mortgage insurance protects the lender when you put down less than 20% on a conventional loan. It typically costs 0.3–1.5% of the loan amount per year depending on credit score and down payment, and can be removed once you reach 20% equity (automatically at 22%).
What are closing costs?
Lender fees, appraisal, title insurance, escrow deposits, and prepaid taxes/insurance — typically 2–5% of the purchase price, due at closing on top of the down payment. On a $400,000 home, budget roughly $8,000–$20,000.
Is it better to put 20% down or buy sooner with less?
It depends on your market and timeline. Waiting years to reach 20% can cost more in rising prices and rent than PMI would; buying with 5–10% down gets you appreciating equity sooner. Run both scenarios — PMI is a known, removable cost, while price appreciation is not refundable.
Where should I keep my down payment savings?
Money needed within a few years belongs in high-yield savings accounts, money market funds, or short-term Treasuries — not stocks. A market drop the year you plan to buy can set your timeline back years.
Key terms
- Cash to Close
- Everything due at closing: down payment plus closing costs, minus any credits — the real number to save toward.
- PMI
- Private mortgage insurance required on conventional loans below 20% down; removable at 20% equity.
- FHA Loan
- A government-insured loan allowing 3.5% down with lower credit requirements, but with its own mortgage insurance premiums.
- Earnest Money
- A deposit (1–3%) made with your offer that later counts toward your down payment at closing.
Methodology, sources & limitations
This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.
For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.