$70,000
$280,000
$55,000
36.7
months
3.06
years
21.4
%
$70,000
$55,000
36.7
months
$17,500
$70,000
$280,000
$55,000
36.7
months
3.06
years
21.4
%
$70,000
$55,000
36.7
months
$17,500
The Down Payment Calculator helps you determine how much you need to save for a home down payment and how long it will take to reach your goal. The down payment is the upfront portion of the home purchase price that you pay out of pocket, with the remainder financed through a mortgage.
The traditional recommendation is a 20% down payment, which avoids Private Mortgage Insurance (PMI) and provides the best loan terms. On a $350,000 home, that is $70,000. However, many loan programs allow much smaller down payments: conventional loans as low as 3%, FHA loans at 3.5%, and VA/USDA loans at 0%.
A smaller down payment means you can buy sooner but results in a larger loan, higher monthly payments, and PMI costs (typically 0.5-1% of the loan annually until you reach 20% equity). This calculator shows both the 20% threshold and a 5% option so you can compare timelines and decide when to enter the market.
The calculator accounts for interest earned on your savings. High-yield savings accounts currently offer 4-5% APY, which accelerates your savings timeline. For example, earning 4.5% on a growing savings balance can shave months off your timeline compared to a standard checking account earning nothing.
In addition to the down payment, budget for closing costs (2-5% of purchase price), moving expenses, immediate home repairs or furnishing, and an emergency fund (3-6 months of expenses). Many buyers focus solely on the down payment and are surprised by these additional costs.
Down Payment = Home Price × Down Payment %
Remaining to Save = Down Payment − Current Savings (minimum 0)
Months to Goal = ln((Remaining × r/S) + 1) / ln(1 + r), where r = monthly savings rate, S = monthly savings amount
This formula accounts for compound interest on your growing savings balance.
The down payment needed is the total amount required. The remaining to save accounts for what you already have. The months to goal includes interest earned on your savings. Compare the 20% target (no PMI) with the 5% option (faster timeline but with PMI) to decide your strategy.
Inputs
Results
Need $55K more. At $1,500/month with 4.5% interest, you will reach your goal in ~34 months.
Inputs
Results
10% down on $250K = $25K. Reachable in ~19 months at $1,000/month savings.
20% is the traditional recommendation to avoid PMI and get the best rates. However, 5-10% is common, and FHA allows 3.5%. The right amount depends on your savings, local market, and comfort level.
You will likely pay Private Mortgage Insurance (PMI), which costs 0.5-1% of the loan annually. PMI can be removed once you reach 20% equity. A smaller down payment also means a larger loan and higher monthly payments.
Yes, most loan programs allow gift funds from family members. FHA allows 100% gift funds. Conventional loans may require some personal funds. The donor must provide a gift letter confirming no repayment is expected.
Yes, many state and local programs offer down payment grants, forgivable loans, or matched savings programs for first-time buyers. Check your state housing finance agency for options.
Waiting for 20% avoids PMI but delays building equity and locks in today's prices. In appreciating markets, buying sooner with 5-10% down and paying PMI may be financially better long-term.
High-yield savings accounts (4-5% APY), CDs, or money market accounts are best for short-term goals (1-3 years). Avoid stocks for down payment savings due to short-term volatility risk.
Plan for closing costs (2-5%), moving costs ($1,000-5,000), immediate home needs ($2,000-5,000), and keep a 3-6 month emergency fund separate from your down payment savings.
Generally no — lenders want to see that the down payment comes from savings, gifts, or grants. Some programs allow 401(k) loans or IRA withdrawals, but regular loans toward the down payment are not permitted.
Increase income (side job, raise), reduce expenses (budget, downsize), automate savings, and earn interest in a high-yield account. Some buyers also sell assets, receive bonuses, or get family gifts.
Yes, generally. Lenders offer better rates for larger down payments because the loan is less risky. The biggest rate improvement typically comes at the 20% threshold (no PMI), with smaller improvements at 25% and 30%.
Roboculator Team
The Roboculator Team explains calculations, planning tools, and practical formulas in clear language for real-life situations.
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