Down Payment Calculator
Calculate how much you need for a home down payment and closing costs. See the total cash needed and resulting loan amount for your home purchase.
A down payment calculator shows you the real cash-to-close number on a home purchase, not just the headline down payment. Most first-time US buyers dramatically underestimate what they need because they budget for the down payment alone and forget that closing costs add another 2–5% of the purchase price on top — inspection, appraisal, title insurance, lender origination, prepaid taxes and insurance, and escrow setup. On a $400,000 home with 10% down, that's $40,000 for the down payment plus roughly $8,000–$20,000 in closing costs, for a true cash requirement of $48,000–$60,000.
The "20% down" rule of thumb exists for one specific reason: avoiding **Private Mortgage Insurance (PMI)**, which conventional lenders require whenever loan-to-value exceeds 80%. PMI typically costs 0.3–1.5% of the loan balance annually, paid monthly — on a $320,000 loan at 0.7% PMI, that's roughly $187/month until you build 20% equity. It's not wasted if it gets you into a home you'd otherwise delay buying for years, but it's real drag. Several loan programs avoid or reduce the down payment barrier: **FHA loans** require as little as 3.5% down (with mortgage insurance premiums for the life of the loan in most cases), **VA loans** allow 0% down for eligible veterans and active-duty service members with no PMI, and **conventional 97** programs let qualifying first-time buyers put down just 3%.
The trickier question is whether a larger down payment is always better. Pumping an extra $40,000 into a down payment saves roughly $2,800/year in interest on a 7% mortgage and eliminates PMI — a solid "return." But the same $40,000 invested in a diversified portfolio might average 6–7% real long-term, before tax considerations. The answer depends on your mortgage rate, tax situation, liquidity needs, and risk tolerance. For down-payment savings under 2 years out, park cash in a high-yield savings account or short-term Treasury product — not stocks. This tool is for educational planning; mortgage pre-approval and a licensed loan officer give you the real numbers.
Quick answer: On a $400,000 home with 20% down and 3% closing costs, you need $80,000 for the down payment plus $12,000 for closing — $92,000 total cash to close, leaving a $320,000 mortgage. This down payment calculator breaks out the exact cash-to-close and loan amount for any home price, down percentage, and closing-cost rate.
Inputs
Quick presetsAccepted offer price, not the list price or your aspirational budget. Use pre-approval numbers or recent comps in your target neighborhood.
What you're putting down out of pocket. 3% conventional first-time programs, 3.5% FHA, 5–10% standard conventional, 20% to avoid PMI entirely, 0% VA/USDA for eligible borrowers.
Fees due at signing — lender, title, escrow, prepaid tax/insurance, transfer tax. Typically 2–5% of home price; NY/NJ/IL run high, no-transfer-tax states run low.
Results
How to use this calculator
Three inputs. **Home price** is the accepted offer price, not the list price or your aspirational budget — use pre-approval numbers or recent comps in your target neighborhood. **Down payment percentage** is what you're planning to put down out of pocket: 3% for conventional first-time buyer programs, 3.5% for FHA, 5–10% for standard conventional, 20% to avoid PMI entirely, or higher if you're prioritizing lower payments and faster equity.
**Closing costs percentage** covers fees paid at signing. A realistic range is 2–5% of the home price depending on your state, loan type, and whether the seller is contributing. Higher-tax states (NY, NJ, IL) and jurisdictions with transfer taxes sit at the top of the range; no-transfer-tax states at the low end. The calculator returns four numbers: your down payment in dollars, closing costs in dollars, total cash needed to close, and resulting loan amount. Use total cash needed — not the down payment — as your savings target, and add a 10–15% buffer for moving, immediate repairs, and reserves the lender may require.
Worked examples
Amir and Priya, first-time buyers
Amir and Priya are looking at a $425,000 townhouse. They qualify for a conventional 5% down first-time buyer product and estimate 3% closing costs. The calculator returns a $21,250 down payment, $12,750 in closing costs, and $34,000 total cash needed, with a $403,750 loan. Because their LTV is 95%, they'll pay PMI of roughly $200/month until they reach 20% equity, likely in year 8–9. Compared to waiting another 3 years to save $85,000 for 20% down, they calculate they'd pay far more in rent during those years than the lifetime cost of PMI.
Robert, a veteran using VA financing
Robert is a post-9/11 veteran purchasing a $350,000 home. The VA loan allows 0% down and charges no PMI, though a one-time VA funding fee of about 2.15% applies (roughly $7,525, usually rolled into the loan). He budgets 3% for closing costs ($10,500) and needs only that at closing, rather than the $70,000+ a conventional 20% buyer would need. The trade-off: he's financing 100% of the purchase price plus the funding fee, so his monthly payment is higher and it takes years longer to build equity — but homeownership is possible immediately.
Jenna, stretching for a jumbo in coastal California
Jenna is targeting a $1.1M home in the Bay Area with 10% down on a jumbo loan at 3.5% closing costs. The calculator shows $110,000 down, $38,500 closing, $148,500 total cash at close, and a $990,000 loan. Her jumbo lender also requires 6 months of PITI in post-close reserves — another ~$40,000 that cannot count toward closing. Her real savings target is closer to $200,000. She decides to wait another 18 months, raise her down payment to 15%, and refinance to conforming loan size once a nearby comparable resets the appraisal picture — trading a delayed purchase for a meaningfully lower monthly carry.
Frequently asked questions
What's the minimum down payment in the US?
Depends on the loan program. VA loans and USDA rural development loans allow 0% down for eligible borrowers. FHA loans require 3.5% with a credit score of 580+. Conventional loans can go as low as 3% through first-time buyer programs like Conventional 97 or HomeReady. Standard conventional without special programs is typically 5% minimum.
How does PMI actually work?
Private Mortgage Insurance protects the lender, not you, if you default. It's required on conventional loans with less than 20% down and typically costs 0.3–1.5% of the loan amount annually, paid monthly. Once you reach 80% LTV you can request removal; at 78% LTV federal law requires automatic termination on most conventional loans.
Is 20% down always the best move?
Not always. 20% avoids PMI and lowers your monthly payment, but tying up that much cash can leave you house-poor with no emergency fund. A common rule: put down enough to get a good rate and keep 3–6 months of full expenses liquid post-close, plus reserves for immediate home repairs. For many buyers, 10–15% down plus strong reserves beats 20% down with empty savings.
What exactly do closing costs cover?
Loan origination fees (0.5–1% of the loan), appraisal ($400–$700), home inspection ($300–$600), title insurance and settlement (0.5–1%), attorney fees in attorney states, state and local transfer taxes (varies enormously), prepaid property taxes and homeowner's insurance into escrow, and prepaid interest for the partial first month. Total typically lands in the 2–5% range.
Can the seller pay my closing costs?
Yes — negotiated seller concessions are common, especially in buyer-friendly markets. Conventional loans cap concessions at 3% for down payments under 10%, 6% for 10–25% down, and 9% above 25%. FHA caps at 6%, VA at 4%. The trade-off: you usually accept a slightly higher sale price to compensate, which can mean a marginally higher loan balance.
Where should I park down payment savings?
Time horizon drives the answer. Under 2 years: high-yield savings account, money market fund, or short-duration Treasury bills — capital preservation matters more than return. 2–5 years: can add CDs or Treasury ladders. Longer than 5 years: some exposure to a conservative stock/bond mix is reasonable, though you should de-risk as the purchase date approaches.
Opportunity cost — down payment vs invest?
Putting $50,000 extra into a down payment on a 7% mortgage saves about $3,500/year in interest and potentially eliminates PMI — effectively a guaranteed ~7% pre-tax return. Investing $50,000 in a diversified portfolio historically averages 6–7% real but with volatility. Math often favors the mortgage paydown if your rate is 6%+; investing may win with sub-4% rates and long horizons.
What's the 'cash needed to close' I should actually save?
Down payment + closing costs + 2–3 months of housing expenses in reserves (many lenders require this) + at least $3,000–$10,000 for immediate move-in repairs, furnishings, and unexpected issues the inspection didn't catch. A practical target is 1.3–1.5x the down-payment-plus-closing-costs figure this calculator returns.