Introduction
A down payment is the money you pay upfront when you buy a home. It is a percentage of the home's total price, and the rest is covered by your mortgage loan. Most home buyers put down anywhere from 3% to 20% of the purchase price. The more you put down, the less you borrow, which means lower monthly payments and less interest paid over time. Use this down payment calculator to figure out how much money you need to save before buying a house. Just enter the home price and your desired down payment percentage, and the tool will do the math for you. This makes it easy to plan ahead and set a clear savings goal on your path to homeownership.
How to Use Our Down Payment Calculator
Enter a few details about the home you want to buy, and this calculator will show you how much you need to save for your down payment and what your loan amount will be.
Home Price: Type in the total price of the home you plan to buy. This is the full cost of the property listed by the seller. If you're not sure what you can afford, try our Home Affordability Calculator first.
Down Payment Percentage: Enter the percentage of the home price you want to pay upfront. A common down payment is 20%, but many loans allow as low as 3% to 5%.
Down Payment Amount: If you already know the exact dollar amount you want to put down, you can type it in here instead of using a percentage. The calculator will update the other fields for you.
What Is a Down Payment?
A down payment is the portion of a home's purchase price that you pay upfront with your own money. The rest of the price is covered by a mortgage loan from a bank or lender. For example, if you buy a $300,000 home and put $60,000 down, your down payment is 20% and your loan covers the remaining $240,000.
Why Does the Down Payment Matter?
The size of your down payment affects almost every part of your home purchase. A larger down payment means you borrow less money, which leads to lower monthly payments and less interest paid over the life of your loan. It can also help you get a better interest rate from your lender, since you're seen as a less risky borrower. To understand how different interest rates affect your total cost, you can use our APR Calculator.
One of the biggest reasons the down payment amount matters is Private Mortgage Insurance (PMI). If your down payment is less than 20% of the home price, most lenders will require you to pay PMI. This is an extra monthly fee that protects the lender — not you — in case you stop making payments. PMI typically costs around 0.5% to 1% of your loan amount per year, and it gets added to your monthly bill. Once you reach 20% equity in your home, you can usually request to have PMI removed. You can estimate exactly how much PMI will cost you with our PMI Calculator.
How Much Should You Put Down?
The traditional advice is to put down 20% of the home price. This avoids PMI and gives you a solid equity cushion from day one. However, many buyers put down far less. Some loan programs allow down payments as low as 3% to 3.5%. While this makes it easier to buy a home sooner, it does mean higher monthly costs and more interest paid over time.
Here are some common down payment levels and what they mean:
- 3% – 3.5%: The minimum for many conventional and FHA loans. You'll pay PMI and have higher monthly payments.
- 5% – 10%: A middle ground that keeps more cash in your pocket while still reducing your loan amount somewhat. PMI still applies.
- 20%: The standard target. No PMI required, lower monthly payments, and you start with meaningful equity in your home.
- Above 20%: Further reduces your loan size and total interest, but tying up too much cash in your home can limit your financial flexibility.
Don't Forget Closing Costs
Your down payment isn't the only cash you'll need at the closing table. Closing costs typically run between 2% and 5% of the home price. These include fees for the appraisal, title insurance, attorney services, loan origination, and more. When planning how much cash you need, always add closing costs on top of your down payment. For a $350,000 home with a 20% down payment and 3% closing costs, you'd need $70,000 for the down payment plus $10,500 for closing — a total of $80,500 in cash. For a detailed breakdown of what those fees look like, check out our Closing Cost Calculator.
How to Use This Calculator
This calculator gives you three ways to figure out your down payment situation, depending on what information you already know:
- "I Know My Cash" — Enter the amount of money you have available, and the calculator tells you the maximum home price you can afford at your chosen down payment percentage.
- "I Know the Home Price" — Enter the price of the home you're looking at, and see exactly how much cash you'll need for various down payment percentages.
- "I Know Both" — Enter both the home price and your available cash to find out what your effective down payment percentage is and whether PMI will be required.
The benchmark comparison table shows you side by side how different down payment amounts — from 3.5% up to 20% — change your monthly payment, total interest, and PMI status for the same home. This makes it easy to weigh your options and pick the down payment level that fits your budget and goals.
Once you've determined your down payment, you may want to explore related tools to plan the rest of your home purchase. Use the Mortgage Payoff Calculator to see how quickly you can pay off your loan, or the Mortgage Extra Payment Calculator to find out how much you can save by making additional payments. If you're weighing whether buying makes sense for your situation, our Rent vs Buy Calculator can help you compare the long-term costs. You can also use the DTI Calculator to check whether your debt-to-income ratio is within a healthy range before applying for a mortgage, the Property Tax Calculator to estimate your annual tax bill, or the Cap Rate Calculator if you're considering the home as an investment property. For homeowners looking to tap into existing equity, our HELOC Calculator and Refinance Calculator are also valuable planning tools. And to make sure you have a financial safety net in place before making such a large purchase, consider using our Emergency Fund Calculator and Savings Calculator to stay on track with your broader financial goals.