Down Payment Calculator

Compare FHA, VA, USDA & Conventional loans. See exactly when you'll be ready to buy.

Purchase Details
HYSA / money market rate
Typically 2–5% of loan amount
Used for PMI drop timeline
Results
0% saved
Down Payment Required
$90,000
Loan: $360,000 · LTV: 80.0%
CONVENTIONAL · No PMI at 20%
Down Amount
$90,000
Monthly P&I
—
PMI / MIP
None
LTV Ratio
80.0%
Cash Needed
—
Goal Date
—
Down = Price × % · Loan = Price − Down · PMI ≈ 0.8%·Loan/12
Monthly Payment by Down % (P&I + PMI)
Chart: monthly payment by down % (p&i + pmi).

Loan Type Comparison

Based on your home price and savings — using your selected mortgage rate and term.

Metric Conventional 5% FHA 3.5% Conventional 20% VA 0%
Calculate on the Calculator tab first.

Bear / Base / Bull Home Price Scenarios

How do market conditions affect your down payment goal?

🙁 Bear Market −10%
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— Base Case
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😀 Bull Market +10%
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Rate × Down Payment — Monthly P&I Matrix

Monthly principal & interest at different rate and down payment combinations. Green = affordable, red = high. Your selection is highlighted.

Rate \ Down % 5%10%15%20%25%

PMI Break-Even: Buy Now vs Wait for 20%

Is it better to buy now with PMI, or wait until you have 20% down?

Cost Analysis

PMI Paid if Buy Now
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Extra Months Waiting
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Interest on Extra Savings
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Appreciation During Wait
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Calculate to see recommendation.

🎯 Goal Seeker — Reverse Calculator

Pick your target purchase date and see exactly how much you need to save each month to be ready.

— Calculate first
Monthly Needed
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Months to Goal
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Total to Save
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Interest Earned
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Savings Acceleration

Compare your current savings pace to boosted scenarios.

Boost Amount: /mo
36-Month Savings Trajectory (Base · Boosted · Super Boosted)
Chart: 36-month savings trajectory (base · boosted · super boosted).
Months Saved
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Goal Date (Boosted)
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Extra Interest
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Total at Goal
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📈 PMI Payoff Timeline

Start LTV
—
PMI Drops At
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Total PMI Paid
—
Months w/ PMI
—
Extra $100/mo Saves
—
Break-Even LTV
80.0%
LTV Over Time (PMI drops at 80%)
Chart: ltv over time (pmi drops at 80%).

24-Month Savings Breakdown

Month Base Balance Boosted Balance Goal
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How to Use This Calculator

1

Set Your Purchase

Enter the home price and select your target down payment percentage on the Savings tab.

2

Choose Your Loan Type

Switch to the Loan tab to compare Conventional, FHA, VA, and USDA loan types with their real costs.

3

Plan Your Savings

Use the Smart Planner tab to set a target date, see how to accelerate savings, and track your PMI payoff timeline.

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Formula & Methodology

Down Payment & Loan

Down = Price × (% / 100)  ·  Loan = Price − Down  ·  LTV = Loan / Price

Monthly Savings to Goal (Compound)

Balance(m+1) = Balance(m) × (1 + APY/12) + Monthly

Iterative simulation including compound interest on accumulated savings.

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Key Terms Explained

PMI Private Mortgage Insurance — required on conventional loans when LTV > 80%. Auto-cancels at 78% LTV.
MIP Mortgage Insurance Premium — FHA's version of PMI. Includes 1.75% upfront fee + 0.55%/yr ongoing (often lasts life of loan).
LTV Loan-to-Value ratio. 80% LTV = 20% down. Lenders use this to determine PMI and loan approval.
VA Funding Fee One-time fee (2.15% for first use) paid to the VA instead of monthly PMI. No ongoing mortgage insurance.
Closing Costs Additional fees at purchase: appraisal, title insurance, origination, escrow. Budget 2–5% of loan amount.
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Real-World Examples

👤

Alex

First-Time FHA Buyer

Inputs: Home: $400,000 · FHA 3.5% down ($14,000) · Current savings: $10,000 · Monthly savings: $1,500 at 4.5% APY

Result: Result: Ready in ~3 months. FHA MIP: ~$183/mo ongoing + $7,000 upfront. Total monthly payment ~$2,800 including MIP.

📄

How Much Should You Put Down on a House?

The 20% Rule and When to Break It

Putting 20% down avoids PMI and gives you instant equity, but it is not always the best strategy. If rising home prices outpace your savings, waiting for 20% may cost you more than PMI ever would. Use the PMI break-even analysis in the Scenario Analysis tab to run the numbers for your situation.

First-Time Buyer Loan Programs

FHA loans allow 3.5% down with credit scores as low as 580. VA loans offer 0% down for eligible veterans with no monthly PMI. USDA loans provide 0% down in eligible rural areas. Many states also offer down payment assistance grants — research your local HFA (Housing Finance Agency).

Opportunity Cost of a Large Down Payment

Cash used for a down payment cannot be invested elsewhere. If your mortgage rate is 6.75% and the stock market historically returns 10%, the marginal dollar invested in extra down payment earns a guaranteed 6.75% (by reducing interest) vs a potential 10% in equities. The right answer depends on your risk tolerance and time horizon.

Down Payment Assistance Programs

Over 2,000 down payment assistance (DPA) programs exist across the U.S. These include state grants, forgivable second loans, and matched savings accounts. Fannie Mae’s HomeReady and Freddie Mac’s Home Possible allow 3% down with reduced PMI. Many programs target first-time buyers earning 80–120% of area median income. Search your state’s Housing Finance Agency (HFA) and the HUD counselor directory — grants of 3–5% of the purchase price can dramatically shorten your savings timeline.

How Home Appreciation Affects Your Decision

Home prices have historically appreciated ~3–4% per year. On a $400,000 home that adds $12,000–$16,000 to the price annually. If you are saving $2,000/month toward a 20% target, appreciation can add nearly as much to your goal each year as you save. Buying sooner at 5% or 10% and paying PMI for a few years often builds more total wealth in an appreciating market than waiting. Run the PMI Break-Even analysis in the Scenario Analysis tab to model your specific numbers.

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Frequently Asked Questions

How much down payment do I need to buy a house?+

Minimum down payments vary by loan type: Conventional loans require 3–5% (3% with HomeReady/Home Possible), FHA loans require 3.5% (580+ credit score), VA loans require 0% for eligible veterans, and USDA loans require 0% in eligible rural areas. Putting 20% down eliminates PMI on conventional loans, saving hundreds per month.

What is PMI and when does it get cancelled?+

PMI (Private Mortgage Insurance) protects the lender if you default and is required on conventional loans when your LTV is above 80%. The Homeowners Protection Act requires automatic cancellation at 78% LTV. You can request removal at 80% LTV if payments are current. FHA MIP works differently — with under 10% down, it lasts the life of the loan. The Smart Planner tab shows exactly when your PMI will auto-cancel.

Is it better to put more down or invest the difference?+

A larger down payment earns a guaranteed return equal to your mortgage rate. If your rate is 6.75% and you expect ~10% stock market returns, investing extra cash may build more wealth long-term. However, more down eliminates PMI and lowers monthly costs. The Scenario Analysis tab compares total 5-year costs at different down payment levels to help you decide.

What are closing costs and how much should I budget?+

Closing costs typically run 2–5% of the loan amount and include origination fees, appraisal (~$500–$700), title insurance (~$1,000–$2,500), escrow fees, prepaid insurance, and initial property tax escrow. Budget 3% as a safe estimate. This calculator includes closing costs in the total cash needed, so the savings timeline shown is complete — not just the down payment itself.

How can I save for a down payment faster?+

Key strategies: (1) Use a high-yield savings account (HYSA) earning 4–5% APY instead of a standard savings account. (2) Automate a fixed monthly transfer on payday before you can spend it. (3) Direct tax refunds, bonuses, and windfalls straight into the fund. (4) Consider a lower down payment target — buying at 5% sooner is often better than waiting years for 20%. Use the Smart Planner tab to see how an extra $500/month cuts your timeline.

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