Down Payment Calculator
Plan your home down payment, compare PMI scenarios, and build a savings timeline
Property Details
Costs & Insurance
Applies when down payment is below 20%. Typically 0.3% – 1.5%.
Savings Plan
Results
Down Payment Required
$35,000.00
10.0% of $350,000.00
Loan Amount
$315.00K
Loan-to-Value
90.0%
Monthly Payment Breakdown
PMI required — your down payment is below 20%. You'll pay $144.38/mo for ~95 months (total $13,715.63) until you reach 20% equity.
Savings Timeline
At $1,500.00/month, you need 17 months (1.4 years) to save $25,000.00 more.
Target date: October 2027
Total Loan Cost Summary
Down Payment Comparison
| Down % | Amount | Monthly | PMI |
|---|---|---|---|
| 5% | $17.50K | $2,729.02 | $152.40 |
| 10% | $35.00K | $2,610.39 | $144.38 |
| 15% | $52.50K | $2,491.76 | $136.35 |
| 20% | $70.00K | $2,244.79 | — |
| 25% | $87.50K | $2,134.18 | — |
Complete Guide to Down Payments
What Is a Down Payment?
A down payment is the portion of a home's purchase price you pay upfront in cash rather than financing through a mortgage. It directly reduces your loan amount, which lowers your monthly payment and total interest cost over the life of the loan.
While 20% has long been considered the standard, many buyers put down as little as 3%–5% through conventional or government-backed loans. The trade-off is paying private mortgage insurance (PMI) until you build enough equity. Use our Mortgage Affordability Calculator to see the maximum home price your income supports, then come back here to plan the down payment amount.
Formulas Used
Down Payment & Mortgage:
Down Payment = Home Price × (Down Payment % / 100)
Loan Amount = Home Price − Down Payment
Monthly P&I = L × r(1+r)^n / ((1+r)^n − 1)
Monthly PMI = Loan × (PMI Rate / 100) / 12
Where: L = loan amount, r = monthly interest rate, n = total months. PMI applies when down payment is below 20%.
Savings Timeline:
Months to Save = (Down Payment − Current Savings) / Monthly Savings
Benefits of a Larger Down Payment
Avoid PMI
Putting 20% or more down eliminates PMI entirely, saving hundreds of dollars per month until you would otherwise reach that equity threshold.
Lower Monthly Payments
A bigger down payment means a smaller loan, which translates directly into lower principal-and-interest payments every month. See the exact difference with our Loan Amortization Calculator.
Less Total Interest
By borrowing less, you pay substantially less interest over 15–30 years. On a $350K home, going from 5% to 20% down can save over $50,000 in total interest.
Better Loan Terms
Lenders view lower loan-to-value ratios as less risky, which can qualify you for a lower interest rate and save even more over the loan term.
Tips for Saving Your Down Payment
Automate savings: Set up an automatic transfer to a dedicated high-yield savings account each payday. Use our Savings Goal Calculator to map out your monthly target.
Budget for closing costs separately: Closing costs typically add 2%–5% of the home price. Do not count that money as part of your down payment fund.
Compare renting vs buying timeline: If saving 20% takes years, compare the cost of waiting against buying sooner with PMI using our Rent vs Buy Calculator.
Common Mistakes
Draining Your Emergency Fund
Putting every dollar into the down payment leaves you vulnerable to unexpected repairs, job loss, or medical expenses right after closing. Keep 3–6 months of expenses in reserve.
Forgetting Closing Costs
Title insurance, appraisal fees, attorney fees, and lender origination charges add 2%–5% of the purchase price. A $350K home may need $7K–$17.5K in closing costs on top of the down payment.
Waiting Too Long for 20%
In a rising market, the price appreciation you miss while saving can exceed the PMI cost. Run the numbers — sometimes buying sooner with 10% down and temporary PMI builds more wealth than waiting.
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OpenFrequently Asked Questions
What is a down payment on a house?
A down payment is the upfront cash you pay toward a home purchase. It is expressed as a percentage of the home price — for example, a 20% down payment on a $300,000 home is $60,000. The remainder is financed through a mortgage.
How much down payment do I need to avoid PMI?
You typically need at least 20% down to avoid private mortgage insurance (PMI). Below 20%, lenders require PMI to protect against default risk. PMI usually costs 0.3% – 1.5% of the loan amount annually and drops off once you reach 20% equity.
How is my monthly mortgage payment calculated?
The monthly payment uses the standard amortization formula: PMT = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan amount (home price minus down payment), r is the monthly interest rate, and n is the total number of months. Property tax, insurance, and PMI are added on top.
What is the difference between this and the Mortgage Affordability Calculator?
The Mortgage Affordability Calculator starts from your income and debts to determine the maximum home price you can afford. This Down Payment Calculator starts from a known home price and helps you figure out how much cash to put down, compare PMI scenarios, and plan a savings timeline to reach your target.
What are common down payment mistakes?
Three frequent mistakes: (1) depleting your entire savings for the down payment, leaving no emergency fund; (2) ignoring closing costs, which add 2%–5% of the home price on top of the down payment; (3) fixating on 20% down when a smaller down payment with PMI may get you into the market sooner and build equity earlier.
Can you give a worked example?
For a $350,000 home with 10% down: down payment = $35,000, loan = $315,000. At 6.5% over 30 years, monthly P&I ≈ $1,991. With PMI at 0.55%, add ~$144/mo until you hit 20% equity (~77 months). Add property tax (~$350/mo at 1.2%) and insurance (~$125/mo) for a total around $2,610/mo.