What is a Down Payment?
Your down payment is the cash you pay upfront, with the mortgage covering the rest. It's expressed as a percentage of the price: 20% down on a $400,000 home is $80,000. The percentage you choose drives two things — the size of your loan and whether you'll pay private mortgage insurance.
This calculator turns a target percentage and timeline into a concrete monthly savings number, and shows the gap between your target and the 20% that removes PMI.
Why it matters
The down payment is where most of the tension in buying a home lives. Put down more and your loan, payment, and total interest all shrink — and at 20% you drop PMI. Put down less and you buy sooner but pay more every month.
Knowing the exact monthly savings needed makes the goal real. 'Save for a house' is vague; 'save $2,083 a month for 24 months' is a plan you can automate. And seeing the PMI cost of a sub-20% target lets you decide, in dollars, whether reaching 20% is worth the extra wait.
What to do next
Pick a realistic target price and down-payment percentage, enter what you've saved, and set your timeline. Automate the monthly figure into a separate high-yield savings account so it happens without willpower.
If you're below 20%, weigh the PMI cost shown here against buying sooner — sometimes starting to build equity outweighs the wait. Pair this with the affordability calculator to confirm the price fits your income, and the mortgage qualifier to check loan-program options like FHA, VA, or USDA that allow lower down payments.
Frequently asked questions
How much down payment do I need to buy a house?
It depends on the loan. Conventional loans can go as low as 3% down, FHA 3.5%, and VA and USDA loans allow 0% for eligible buyers. But putting down less than 20% on a conventional loan means paying PMI. There's no single required number — it's a trade-off between cash upfront and monthly cost.
Why is 20% down the magic number?
At 20% down (an 80% loan-to-value), conventional lenders drop the private mortgage insurance requirement. PMI typically costs 0.3–1.5% of the loan per year and protects the lender, not you — so reaching 20% removes a monthly cost that builds you nothing.
What is PMI and how much does it cost?
Private mortgage insurance is required on conventional loans with less than 20% down. It usually runs about 0.5% of the loan balance per year, added to your monthly payment — roughly $150/month on a $360,000 loan. It automatically drops off once you reach 20–22% equity.
Should I put down less and buy sooner, or wait for 20%?
Both are valid. Putting down less lets you buy (and start building equity) sooner but adds PMI and a bigger loan. Waiting for 20% lowers your payment and skips PMI but means more time renting and exposure to rising prices. Compare the monthly difference here against your local market.
How do I save for a down payment faster?
Set the goal and timeline, automate a monthly transfer to a separate high-yield savings account, and keep it out of everyday spending. Windfalls — tax refunds, bonuses — accelerate it. This calculator's monthly figure is the number to automate; treat it like a fixed bill.
Does the down payment include closing costs?
No — they're separate. Closing costs (typically 2–5% of the price) cover lender fees, title, and escrow, and are due at closing on top of your down payment. Budget for both so you're not caught short; some buyers negotiate seller credits to help with closing costs.
Down payment = price × target %; PMI estimated at 0.5%/yr of the loan below 20% down (2026).