Down Payment Calculator
Compare 5%, 10%, and 20% down payment options side-by-side. Enter home price and monthly savings to see required amounts, PMI costs, total monthly payments, and how long to save each target.
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How It Works
Enter home price, interest rate, and term. The calculator shows 5%, 10%, and 20% down simultaneously: down amount required, resulting loan size, monthly P&I payment, estimated PMI (for sub-20% options), and total monthly payment. PMI rates by LTV: 95% LTV (5% down) ≈ 0.85%/yr, 90% LTV ≈ 0.50%/yr, 85% LTV ≈ 0.32%/yr.
PMI/month = loan × annual_rate / 12 | down = price × 0.05/0.10/0.20$400k home: 5%=$2,671/mo, 10%=$2,425/mo, 20%=$2,023/moPMI protects the lender and adds $100-$300+ per month to your payment. By law (Homeowners Protection Act), it must automatically cancel when your loan balance reaches 80% of the original purchase price — roughly year 11 on a 30-year loan at minimum payments. You can also request cancellation earlier if your home has appreciated significantly.
PMI auto-cancels at 80% LTV of original purchase price$380k loan, 0.85% PMI rate: $269/mo | cancels when balance hits $320kEnter your monthly savings amount. The calculator divides each down payment target by your savings rate to show months to reach 5%, 10%, and 20%. For a $400,000 home saving $2,000/month: 5% ($20k) takes 10 months, 10% ($40k) takes 20 months, 20% ($80k) takes 40 months. Add extra months for closing costs.
Months to save = down_payment_target / monthly_savings$2k/mo savings: 5% in 10mo, 10% in 20mo, 20% in 40mo (+closing costs)5% vs 20% down on $400,000 at 6.5%: 5% down total P&I over 30 years ≈ $865,000 plus PMI for 11 years ≈ $35,000, totaling $900,000. 20% down total ≈ $729,000. Lifetime difference: $171,000. But 20% requires $60,000 more upfront. If that $60,000 were invested at 7%/yr for 30 years, it could grow to over $450,000.
30yr: 5% down costs ~$171k more in P&I + PMI vs 20% down$400k: 5% down total $900k vs 20% down total $729k over 30yrDown payment savings should sit in a High Yield Savings Account (HYSA) at 4-5% APY — not the stock market. Stocks can drop 30-50% at any time. A market crash right before your purchase date could delay buying for years or force you to buy with less. HYSAs are FDIC-insured and offer guaranteed 4-5% returns, ideal for a 1-3 year savings goal.
HYSA: safe, FDIC-insured, 4-5% APY | stocks: risky for short-term goals$40k in HYSA at 5% APY for 2yr earns $4,100 risk-freeQuick Reference
Verify these in the calculator above.
5% option
$400k home, 5% down, 6.5%
$2,671/mo (with PMI)
10% option
$400k home, 10% down, 6.5%
$2,425/mo (with PMI)
20% option
$400k home, 20% down, 6.5%
$2,023/mo (no PMI)
PMI + P&I diff
5% vs 20% monthly difference
$648/month
PMI removal
PMI auto-cancels at
80% LTV original price
Timeline
$2k/mo savings, 20% on $400k
40 months
Lifetime cost
30yr total: 5% vs 20% down
$900k vs $729k
FHA option
FHA minimum down payment
3.5% with 580+ credit
Tips & Shortcuts
Keep your growing down payment in a High Yield Savings Account (4-5% APY), not stocks. You cannot risk a 30-50% market drop right before your purchase window.
If you are at 19% saved, waiting just 1-2 more months to reach 20% is almost always worth it — eliminating PMI saves $150-$300 per month for roughly 11 years.
Budget for closing costs separately (2-5% of loan amount). Many first-time buyers are surprised these must be paid at closing in addition to the down payment.
FHA loans offer 3.5% down with 580+ credit score, but charge mortgage insurance premium (MIP) for the entire loan life — unlike conventional PMI which cancels at 80% LTV.
Ask your lender about lender-paid PMI (LPMI) — the lender covers PMI in exchange for a slightly higher interest rate. This can work well if you plan to sell within 7-10 years.
Common Mistakes
Forgetting closing costs in the savings target
Down payment is only part of upfront costs. Closing costs of 2-5% of the loan amount ($8,000-$20,000 on a $400k home) must be paid at closing in addition. Budget roughly 7-8% of the home price total to cover everything.
Keeping down payment savings in stocks
A 30-50% market drop right before your planned purchase date could push your timeline back by years. Down payment savings belong in a HYSA or money market account — not equities — regardless of your long-term investment strategy.
Ignoring the savings timeline for closing costs
The calculator shows months to reach the down payment. Add 3-5 more months for closing costs. Many buyers underestimate the total savings required and end up delaying the purchase.
Choosing FHA without comparing to conventional
FHA loans charge MIP for the entire loan life — you can never cancel it on older FHA loans. A conventional loan with 5% down and PMI that cancels at 80% LTV often costs less over the long term than an FHA loan for borrowers with 620+ credit scores.
Not requesting PMI cancellation when eligible
PMI auto-cancels at 80% LTV based on original value. But if your home has appreciated, you may already be at 80% LTV based on current value. Request a new appraisal — if it confirms 80% LTV or better, you can request immediate PMI removal.
Frequently Asked Questions
Minimum varies by loan type: Conventional 3-5%, FHA 3.5% (580+ credit), VA and USDA 0% for eligible borrowers. However, 20% down eliminates PMI, reduces the loan, and lowers monthly payment and total interest significantly.
PMI (Private Mortgage Insurance) is required on conventional loans below 20% down. Annual cost: 0.3-1.5% of loan amount. By law, auto-cancels when balance reaches 80% of the original purchase price — roughly year 11 on a 30-year loan at minimum payments.
On $400,000 at 6.5%: 5% down = $2,671/month (P&I $2,402 + PMI $269). 20% down = $2,023/month (no PMI). Monthly difference $648. Over 11 years until PMI cancels: roughly $85,000 total extra cost.
Depends on local appreciation. At 5-10%/yr home price growth, each month waiting costs more in missed appreciation than PMI savings. In flat markets, reaching 20% clearly wins. Compare monthly appreciation vs monthly PMI cost.
Federal, state, and local programs offer grants (free), forgivable loans, and deferred loans. Check your state housing finance agency and hud.gov for approved programs.
Months = target / monthly savings. For $400k home at $2,000/month: 5% ($20k) = 10mo, 10% ($40k) = 20mo, 20% ($80k) = 40mo. Add months for closing costs. Keep funds in a HYSA (4-5% APY) while saving.
Closing costs 2-5% of loan ($8k-20k on a $400k home), inspection $300-500, appraisal $500-800, moving $1k-5k. Budget about 7-8% of home price total to cover down payment plus all upfront costs.
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